AFRICAN DEVELOPMENT FUND

CENTRAL AFRICAN REPUBLIC

COMPLETION REPORT

ON THE MBALI HYDRO-ELECTRIC DAM PROJECT

(ELECTRICITY II1

DEPARTMENT OF INFRASTRUCTURE AND INDUSTRY,SOUTH REGION NOVEMBER 1994

1258r

EQUIVALENCIES . A-C-RONYMS AN-D ABBREVIATION-SCURRENCY EQUIVM ENTS(3rd Quarter, 1994)

currency UnitUA lUA lUA l

CFA FrancCFAF 792.476US$ 1.44837FF 7.92476

FUA 1UA lUA lUA l

At appraisal(3rd Quarter, 1988)

= 370.71= 402.48

US$ 1.310618.04971

WEIGHTS AND MEASURES

= 1000 watts= 1000 kilowatts= 1000 watt-hours= 1000 kilowatt-hours= 1000 megawattihours= 1000 volt-amperes= 1000 kilovolt-amperes= 1000 volts= l00Q kilogrnmmes= 1000 calories= . 10.000 square metres

l Kilowatt (KW)l Megawatt (MW)l Kilowatt-hour (KWh)l Megawatt-hour (MWh)1 Gigawatt-hour (GWh)1 Kilovolt-ampere (KVA)l Megavolt-ampere (MVA)l Kilovolt (kV)1 Tonne (t)l Kilocalorie1 Hertare

IDAM BEIBLVCFDENERCA =FACADFKF

KgOE

NA =ESMAPPCRCARTOE

ABBREVIATIONS

International Development AgencyAfrican Development BankEuropean Investment BankLow VoltageCaisse Française de DgveloppementEnergie de CentrafriqueFonds deaide et de coopirationAfrican Developement FundKuwaiti FundHigh VoltageKilogrnmme oi1 EquivalentMedium VoltageNot Available 'Energy Sector Management Assistance ProgrnmmeProject completion ReportCentral African RepublicTonne Oil Equivalent

Fiscal Year

l January - 31 December

TABLE OF CONTENTSPaqe

i-iiBASIC DATA

INTRODUCTION

l.l The Energy Sectorl.2 CAR Energy Policyl.3 The Electricity Subsectorl.4 Sources of Information

PROJECT PREPARATION AND APPRAISAE

2.1 Project Genesis2.2 Preparation, Appraisal, Negotiation and Approval2.3 Long-term Project Role2.4 Project Description2.5 Contracts

2.

l437

7

77889

10

101011111515

15

16

1616171717

18

PROJECT IMPLEMENTATION, OPERATION AND COST

3.l Loan effectiveness and Project Start-up3.2 Revisions '3.3 Implementation Schedule3.4 Procurement of Goods and Services3.5 Costs and Disbursements3.6 Operations3.7 Performance of Consultants, Contractors and the

Executing Agency

OPERATING PERFORMANCE

4.l The Market

4.2 The Role of the Project4.3 Other Factors4.4 Impact on Women4.5 Environmental Impact

4.

6.

FINANCIAL PERFORMANCE

5.l Operating Analysis5.2 Analysis of the Financial Structure5.3 Financial Rate of Return5.4 Economic Rate of Return

STRUCTURAL PERFORMANCE

6.l Legal and Institutiùnal Framework6.2 Organisation and Management6.3 Stqff and Training6.4 Accounting and Auditing6.5 Tariffing6.6 Billing and Collection

l 8181919

2 0

202021222223

a' >

PROJECT JUSTIFICATION

7.l Project Implementation7.2 Least Cost Solution

PERFORMANCES OF THE BANK AND BORROWER

8.l Overall and Specific Performance8.2 Supervision ?8.3 Working Relations

CONCLUSIONS

9.l Results9.2 Lessons Drawn from the Project and Recommendations

8.

2324

25

252525

26

2626

This report was prepared by Messrs. M. DOUMBIA (Electrical Engineer)and K. BA (Consultant Financial Analyst) following their mission to CAR inOctober 1994. Further information may be obtained from Messrs. S.C.. DESAI,SISI.2, Ext. 4120.

N

LIST OF ANNEXES

Title

ENERCA Electricity System

Energy Balance, 1990

Bangui Interconnected Supply System

Principal Featûres of Remote Centres

Operating Statistics

Single Line Diagram of the Bangui Supply Network

Comparative Costs Table

Comparative Statement of ENERCA'S Operating Accounts

Summary of ENERCA Balance Sheets

Assumptions of Financial ProjectionsFIRR Calculation Table

EIRR Calculation Table

Present Organization Chart of ENERCA

Status of Implementation of the Other Components of

the Energy ProjectADF Loan Conditions

Estimated Operating Accounts

M 'Bali Dam Site

4.

5.

6.

l0.

1l.

l2.

l3.

l4 .

2

2

l6.

PROJECT BASTC DATA

COUNTRY

PROJECT

LOAN No.

BORROWER4.

EXECUTING AGENCY

A . LOAN

LOAN APPLICATIONAmountInterest rateRepayment PeriodGrace PeriodDate of Loan NegotiationDate of ApprovalDate of SignatureDate of Effeetiveness

B. PROJECT DATA

1.2.3.4.5.6.7.8.9.

Central African Republic

Mbali Hydro-electrie Dam - Electricity 11

F/CEF/ELC/88/26

Government of the Central African.Republic

Energie Centrafrieaine - ENERCA

APPRAISAL ACTUAL

UA 11.05 million 11.05 milliono.7pi/year40 years10 yeaHs19/11/198823/11/198828/05/198916/06/1989

Total Cost (UA millions)Financing Plan(in millions of UA)

28.7 32.5

ADFIDAKuwaiti FundCFDGovernmentTotal

APPRAISALF.E. L.C. Total

8.52 2.58 11.108.73 - 8.735.24 - 5.241.93 0.34 2.27- 1.39 1.39

24.42 4.31 28'.73= = = = = = = = = = = = = =

ACTUALF.E. L.C. Total

4.422.362.082.03

10.89= = = = =

6.637.493.020.221.5118.87= = = = =

11.059.855.102.251.5129.76= = = = =

APPRAISAL3. Deadline for first disbursement4. Effective Date of First Disbursement5. Effective Date of Last Disbursement6. Start of Project Implementation7. Works completion

ACT-U-A- L

31/05/199005/09/198908/01/199214/11/198831/03/1991

4.5.6.7.8.

C . PERFORMANCE INDICATORS

Cost reductionDelays- Delay on estimated date of effectivenessDelay on estimated date of lst disbursementDelay on estimated date of last disbursement

Number of extensions of last disbursementDelay on completion dateCurrent status of project implementation- Project start-up date 30/09/1988- Project completion date 31/01/1991Institutional PerformancePerformance of enterprisesPerformance of consultants

APPRAISAL

FIRREIRR

D . MISSIONS- Identification- Preparation- Appraisal- Launching/Monitoring- Supervision '- PcR

E. DISBURSEMENTS (ADF LOANI(in thousands of UA)

- Total disbursed- Amount cancelled- Balance

- Annual Disbursements(in millions of UA)

1989 1990 19912.22 5.75 1.70

F. CONTRACTORfSI/SUPPLIERS

DamName

ResponsibilityDate of signatureDate of contract completioncontract value

Strenctheninq of Boali-lanqui 60 kv transmission line

ACTUAL

No cost reduction

012 months

14/11/198831/03/1991inadequategoodgood11.69%27.71

MAN/WEEKSNANA

4h/wNA

2h/w4h/w

DATENASept. 1987Aug. 1988NA .May 1991Oct. 1994

11.05 11.05

19921.38

Total11.05

CHINA INTERNATIONAL WATER AND ELECTRIC

CORPORATION (CWE)Construction of dam13 October, 198831 March, 1991CFAF 7,356,209.635

NameDate of signatureDate of completionContract value

SPIE-ENERTRANS30 April 1994June 1995 (estimated)

: FF 7 million

;

*'''

CONSULTANTNameDate of signature ofcontract

Date of contractcompletionContract value

COYNE ET BELLIER

1988

: September 1992: FF 17,735,651

CANADIAN IMTERNATIONAL POWER SERVICES(CIPS)

: Assistance to Project Unit: 2 years: US$ 420,300

H . TECHNICAL ASSISTANCEName

ResponsibilityDuration of contractAmoùnt

INTRODUCTION

1.0.1 The Central African Republic is a landlocked country, with an area of2 and a population of 2.7 million inhabitants. It 'is bordered to623,000 km

the north by chad, to the east by Sudan, the south by congo and Zaire andfinally to the west by Cameroon.

1.0.2 CAR is a country with substantial agricultural and forest potentialwhich is little or insufficiently developed; its mineral resources are limitedand the industrial sector is embryonic. The country has a good energy baseparticularly ip wood fuels and hydro-electricity. No exhaustive inventory ofthese resources has, however, been carried out and the energy potentialconsequently remains very underestimated. Efforts have, therefore, been made

'

ied and promoie theby the Government to better assess the resources identifdiscovery of new resources.

1.0.3 Although no exchaustive evaluation has been carried out, CAR'shydro-electric potential is however considered substantial and undertapped.At present total installed hydro-electric power is below 20 MW and is entirelygenerated by the Boali l (8.75 MW) and Boali 2 (9.90 MW) power plants locatedon the river M 'bali and the usable energy potential of which is around 56 MW.Moreover, during the dry season, the flow rate of the M'bali was barelysufficient to provide these two plants with output equivalent to 20% of thetotal installed power; this led to a substantial shortage of power for theconsumers, and increased thermal power generation for ENERCA with, as aresult, oi1 bills which became increasingly unbearable for the financialstabiiity of the company.

1.0.4 The Government of the Central African Republic, therefore, decided tobuild the storage dam to regulate the river course with the dual aim dfincreasing the annual output of the Boali l and 2 power plants to make up theshortfall in power, and maximizing the exploitation of the M'balihydro-electric potential. The dam project thus conceived constituted theprincipal component of the first energy sector project defined in 1988 by theGovernment and the World Bank, and cofinanced by EIB, CFD, ADF, the 'KuwaitiFund and CAR.

1.0.5 The M'bali dam project was implemented between 1989 and 1991 underthe responsibility of the national ekectricity company Energie Centrafricaine(ENERCA) which was the executing agency. COYNE and BELLIER, the engineeringconsultants firm, provided design, engineering, and works control andsupervision services. The foundation stone was laid on 21 December, 1988 andthe inauguration ceremony took place on l September, 1991. This ProjectCompletion Report (PCé) was prepared on the basis of documents prepared byENERCA and the consulting engineer and the results of the related mission tothe executing agency. However, it only concerns the RDamH component financedby ADF, since other components of the Energy Sector Programme are not yetcompleted (see paragraph 2.4.2).

The Enerqv Sectorl/

Orqanization of the Sector

1.1.1 The organization of the energy sector is a general reflection of thebasic differences among the different sub-sectors and the resulting specific 'requirements. The design, application and control of energy devplopment policyin cAR is assigned to the Ministry of Mines and Energy which is alsoresponsible for legislation for the sector 'and the political and technicalsupervision of public and parastatal enterprises in the sector. ' This

' é. ' . ' ?supervision is principally the responsibility of the Energy Gen ra1Directorate.

1/ Source: UNDP, World''Eank, PAGSE, Report, 1992.

1.1.2 Two other State bodies are active in the operation of the energysector, namely the Ministry of Forests, Hunting, Fisheries and Tourism whichis responsible for natural resource management and protection. Through theForestry Directorate, it is responsible for administering the country's forestresources and regulates and controls their use (timber, but also firewood andcharcoal). However, the activity, from the gathering of fuelwood to the endproduct for the consumer, is governed by saleability and market mechanisms.Supply and distribution are carried out by private ôperations or familyfirms. The second. body is a service attached to the office of the PrimeMinister which plays a supervisory, advisory and coordination role in publicenterprise management.

1.1.3 The' supply, conveyance and distribution of so-called commercial ormodern energies is ensured by two enterprises the first of which is parastataland the other state-owned. The Centrafricaine des Petroles (PETROCA) thus hasthe monopoly for the supply and distribution of petroleum products; while inthe electricity sub-sector ENERCA, Energie Centrafricaine has the mgnopoly forthe generation, transmission and distribution of electric power through thecountry's territory.

Analvsis of enerqv supplv and demand

Enercv suoolv

l l 4 The principal energy resources of CAR are in the form of woöd andhydro-electric powey. Table 1.1 below gives a summary of the 1990 energybalance (total su/ply and final consumption). It reveals that natibnal energyproduction was TOE 595,700 the bulk of which, 961, consists of fuelwood. Theremainder is divided between hydro-electric power (3.1%) and the biomass(0.9*). Table l.l also shows that total primary energy supply was TOE 687,900in 1990 including, in addition to local production, hydrocarbon imports of TOE81,800 and fuelwood of TOE 10w4Q0. Details of this balance are set out inAnnex 2.

Table 1.lEnercv Balance, 1990

(in TOE 1,000)

SupplvOutput Imports

572.3 10.45.l -- 81.818.3 -595.7 92.2= = == = = = = =

Consumption

576.9

71.89.3

658.0= = = = =

87.7

10.9l.4

100,0= = = = =

FuelwoodBiomassOil ProductsHydro-electricity

Total

1.1.5 Fuelwood: Most of CAR is covered with fairly thick, savannahvegetation and in the south by moist closed forest over an area of around 3.5million hectares i.e. 5% of the territory. Firewood (and to a minor extentcharcoal) is the fuel used by virtually every household in CAR for cookingfood. Current fuelwood requirements are estimated at l.6 million tonnes offirewood and 3,700 tonnes of charcoal. Nation-wide, these figures areinsignificant in view of the output of the forest stands of the CentralAfrican Republic. Tn fact, the rate of cover of wood energy requirements(natural productivity/fuelwood requirement) is around 60%. Population growthand the associated increase in requirements could result in localizedshortages from 2050 (the Bangui region and the north-west of the country).

1.1.6 Hvdro-electricitv: The hydroelectric potential of the CAR has notyet been assessed in detail. It is, however, considered substantial andundertapped. The sites already identified, studied and partially developedprovide a total power capacity of around l40 MW for an estimated annualproduction of over 1000 Gwh. Of this, only 18.6 MW have been developed in theBoali l and 2 power plant in the River M'bali. Compared with total electricpower supply which was 98.75 gwh in 1992 (the highest level of the last fiveyears), total identified potential corresponds to 10 times this figure, whichshows that the constraints in the development of hydro-electricity are notrelated to resource availability, but rather to economic reasons (availabilityof capital) and planning capacity for the extension of the system.

1.1.7 Hvdrocarbons: Since the 19d0s, the prospects for discoveringhydrocarbons in the South chad Basin, to the north of CAR are consideredattractive. The geophysical work and the different oil prospection worksundertaken in the 1980s pointed to the existence of hydrocarbons but thediscovery was not considered to be of commercial interest and the prospectionlicences were not renewed. A progrmmme to promote prospection in that areahas been initiated by the Government, with the financial assistance of theInternqtional Development Agency (IDA) under this energy project.

1.1.8 Other sources of enercv: A lignite deposit of 2.9 million m3 as wellas a 20,000 tonne uranium deposit have been discovered in the Bakouma region.These deposits have been insufficiently evaluated and the economic viabilityof tapping them not yet proven. Pinally, very little is known of solar andwind potential; thèir contributipn, at present insignificant, towards meetingthe energy requirements of CAR, should remain minimal in the medium andlong-terms. They could, however, provide a back-up supply for some veryspecific uses (water pumping, telecommunications, minor electric powerrequirements on remote sites, etc...).

Enercv consumption

1.1.9 Due to the energy supply described in the proceding paragraphs, theprincipal feature of final energy consumption in CAR is the great use offuelwood which, in comparison reduces the use of modern fuels on sale tovirtually zero. Firewood and charcoal alone now meet 97% of household energyrequirements and around 88% of %he countryes final energy consumption as shownin Table 1.1. Oi1 products represent around ll% and hydro-electric powerwhich in 1988, represented up to around 86% of the energy sector publicinvestment progrAmme only covers 1% of energy requirements.

1.1.10 Final energy consumption whiéh, in 1990, represented 658,000 tonnesoil equivalent (TOE), i.e. approximately 244 KgOE per inhabitant is low as is,at 30 KgOE per inhabitant, that of modern fuels. This is due to: i). the lowlevel of incomes; ii) the relatively high cost of oil product and the highcost of connections in the case of electricity; iii) the 'predominance ofsubsistance agriculture in the economy; and iv) the narrowness of theindustrial sector.

1.2 CAR Enerqv Policv

1.2.1 The assessment of theUNDP/World Bank Energy Sectoridentified the principal problemsdevelopment of the sector. They are

a)

energy sector in cAR conducted under theManagement Assistance Programme (ESMAG),

and constrainte which could face thesummarized as follows:

final consumption is fairly low, in the region of 240KgoE/inhabitant; it is dominated by wood (ref. 1.1.9) apdvthe')so-called modern energies have a considerable implkùlz' ôhpublic investment (eïectricity) # and on the balàheè' '' ofayment (oil products ) , despite a limited developmènf ' ofPinf rastructm r4;

$':/

.j ',' ',#

'

i hich has resulted inb) there is virtually no sectoral plann ng wlittle coordination of development and the non-optimal use ofavailable resources;

the prices of the so-called modern energies are high and oiltaxation which, although not exceséive, is considerable andhigher than in neighbouring countries; and

t

d) the State's regulatory and control capacities are very limitedand its relations with the public enterprises and partiiul, arlywith PETROCA, are not clearly defined and lack transparehcy.

1.2.2 Faced with these problems and constraints, the Govprnpent'sreflection on a national energy policy, initiatëd by this global a4sessment ofthe energy sector, focussed on the followihg principal points:

a) the resources required 50th from the economic as well as thel d regulatory standpoints, to channel eonéuiersinstitutiona an

towards more rational energy options and avôid wastage, whileencouraging access to modern forms of energy by an inereasinglylarge section of the population; '

b) the search for least-cost supply options to reduce the impact of. investment as well as imports of equipment and energy products onthe principal macroeconomic balances;

c) the mobilization of new means of financing to ensure thedevelopment of the energy sector by associating the privatesector where possible, and the communities concerned by theextension of energy facilities;

d) consideration of environmental problems at all stages of projectimplementation from studies and economic appraisals tocompletion; and

e) strengthening of the institutional system to ensure thecoordination, control and managemept of actions in the energysector which are the responsibility of the State.

l.3 The Electricitv Sector

Backqround

1.3.1 The electricity subsector in cAR is the responsibility of the Energiecentrafricaine (ENERCA) for the generation, transmission and distribution ofelectric power throughout the national territory. Since ENERCA'S activitiesdo not cover the entire country and since, moreover, its electrical facilitiesare insufficient to meet the total electric power demand of the differentsocial and economic sectors, independent producers, the most important ofwhich are industrial units in the interior of the country, as well as privateentrepreneurs in some districts and small centres also generate electricity.

Electricitv ceneration

1.3.2 In terms of installed power, ENERCA 'S electricity generatingequipment, with a total power of 36.9 MW (refer to annexes 3 and 4) comprisesdiesel thermat plants (18.2 MW) and hydro-electric plants in Bangùi, whoseelectricity grid, with 33.5 MW, represents 9l% of the country's generatingcapacity and includeà: moreover, the totality of the hydro-elecçricproduction. Total installed power of privately operated plants, originallyentirely thermal, was estimated at around 30 MW in 1992, half of which wasconsidered as privately generated back-up supply in Bangui. The total annualproduction of these privately operated plants is in the region of 20 to 23 Gwh.

- 5

1.3.3 Table 1.2 below provides a summary of the trend of electric powergeneration and consumption on the ENERCA network over the last five (5) years;a detailed breakdown is given in Annex 5. It reveals that from 19.89-1993,electric power generation was dominated by hydro-electricity which representedup to 99% of total energy pyoduced 'in 1993. The lowest rate was 7l% in 1991.Net generation of electricity was 92.57 gwh in 1993 while energy delivered tothe distribution network was 85.14 Gwh, i.e. transmission losses of over 8%.Such losses mpst be considered as very high in view of the length (80 km) andthe operating voltage (60 kv) of the transmission network. On the other handthe load factor (coefficient of utilization of installed power) ma# beconsi'dered satisfactory with a value of between 61 and 65*.

Electricitv consumption

1.3.4 In 1993 electricity consumption in CAR was around 61 Gwh; whichrepresents average consumption per inhabitant of around 22 Kwh, one of thelowest in the world. But only about 1.71 of the country's population useselectricity and virtually 99% of total consumption on the ENERCA network isconcentrated in Bangui. The structure of electricity consumption in Banguireveals fairly high MV consumption, representing 54.4+ of total demand. LVconsumption, 45.6%, is broken down as follows: 15A for private consumers(households and craftsmen), 4.4+ for Embassies 4.7% for Government and 20.8%for State corporations.

1.3.5 ENERCA'S different means of generation in Bangui are interconnectedby two high voltage lines, 81 and 83 km long and with a 60 kv operatingvoltage, linking respectively the Boali l and 2 hydro-electric power stationslocated on the River M'bali, to the Bangui diesel thermal plant. These linessupply the towns distribution networks through two HV/MV stations with a totaltransformer capacity of 25 MVA. The single-line diagram of the Bangui supplyis presented in Annex 6. Distribution is though a 15 kv MV network and a220/380 M, LV network. Distribution losses which were calculated at 28.38* asof the end of December, 1993, remain very high even if this figure reflects animprovement in the network yield compared with previous years. Combined withtransmission losses, they give a rate of total losses of 34.13% which remainsbelow the projections of the 1994 aetion plan which had a target of 30%.

Table l.2

Generation and consumption of electr-i-citv

1989 1990 199 1 1992

Installed power (MW)Gross output (GWh)

Thermal (GWh)A totalHydro (GWh)% total

Net output (GWh)Consumption (GWh)Overall losses (%)Peak power (MW)Load factor (%)

30.4992.0911.9412.9780.1587.0391.2860.0734.1917.2061.12

36.8999.3826.3026.4673.0873.5497.9264.3334.3017.3565.39

36.8992.1226.3028.5565.8271.4590.6455.2839.0116.6063.35

36.8999.931.71

1.7$98.2298.2998.7561.5937.6318.6061.33

36.8993.640.84.0.9092.8099.1092.5760.9834.1317.4561.26

- 6

Sub-sector Development Plan

1.3.6 The development of the electricity sub-sector was planned through an''Electric Power Generation and Transmission Master Plan'' study over a 15 yearperiod (1992-2007). This master plan principally concerns the CARinterconnected network limited to the town of Bangui. One of the twelvesecondary centres, that of M'Baiki close to Bangui (lQ7 km), was alsoconsidered; its connection to the interconnected network was, in fact: plannedunder the study. The principal focus of the master plan was the short andmedium-term expansion progrnmme of the Bangui generating system in order tomeet at least cost, the future electric power requirement of that reèion whichrepresents almost 99% of ENERCA'S total electric power consumption.

1.3.7 On the basis of an average demand growth forecast of around 4% peryear, the expansion plan adopted is a totally hydro scenario, the principalelements of which are the Boali 3 and Palnmho plant. 1% focuses on theimplementation, in two phases, of the Palnmho multi-purpose hydro-electric

scheme . The principal objective of this (Energy + Transmission) structure toregulate the River Oubangui is to open up the country by means of the river;in addition it will permit the installation of a hydro-electric plant with 30MW of installed power and a guaranteed annual output of 3l4 GWh. The firstphase of the project (l5 MW and l60 Gwh) is expected to come on stream in theyear 2,000 and the second phase in the year 2006. In addition to the Palxmh'o

project, ' the output expansion programme will begin in 1995 with theconstruction of the third Boali hydro-electric power station (9 MW, 40 Gwh),the civil works on which were completed with the M'bali dam. The total costof the progrnmme as it is defined is estimated at US$ 74.73 million. Itconstitutes the least cost scenario.

contribution of the probect to the sub-sector

1.3.8 The M'bali hydro-electr/c dam project is the Bank's second commitmentin the energy sector and more specifically in the electricity sub-sector.Previously, in January 1984, ADF had financed, on the Technical AssistanceAccount, studies on the Bangui electricity network for a total amount of UA320,000. These studies led to the implementation, in progress, under thisenergy project and on EIB financing, of the component concerning the''Rehabilitation and extension of the Bangui electricity distribution networks''(see Annex 14). This component is particularly important for the economic andfinancial viability of the Mebali dam.

1.3.9 Two of the principal themes of energy policy in CAR are to ecourageaccess by an increasing section of the population to modern forms of energy,and seek least-cost supply solutions to reduce the impact of imports of energyproducts on the principal macroeconomic balances. Their implementation shouldmake it possible to address the principal problems and constraints facing thedevelopment of the sector. The contribution of the M 'bali hydro-electric damto the development of the sub-sector and the resolution of the country's majorenergy problems should be considered against this background. In fact, due tothe regulation of the M'bali river course, the first phase of this structurehas made it possible to increase by around 43% (from 73 GWh to over l04 gwh)the annual guaranteed output of the two existing plants of Boali l and 2. Thesecond phase will permit the construction of the future Boali 3 hydro-electricplant with an installed capacity of 9.6 MW and a guaranteed annual output of40 GWh. A key component of the CAR Electric Power Genepation and TransmissionMaster Plan, the M'bali hydro-electric dam thus encourages àccess by a greaternumber of consumers, at least cost, to electric power.

- 7 -

l.4 Sources of Information

This report was prepared on the basis of information .taken from (i)the appraisal report on the electricity project (M'bali Dam); ii) thequarterly works' proqress reports; iii) the consulting engineet's final reporton the implementation of the dam construction work; iv) the ADB archives; andv) the outcome of discussions and the field visit with the different officialsof the ENERCA services concerned by the ppoject.

PROJECT PREPARATION AND APPRAISAL

2.l Proqect Genesis

2.1.1 The M'bali dam construction project originated in the studyconducted, on CFD financing, with a view to reducing cAR's dependency on oilproducts for electricity generation. In fact, the construction of the storagedam upstream from the Boali l and 2 hydro-electric power plant makes itpossible to regulate the flow of the M'bali by constituting reserves duringthe rainy season which during the dry season, provide the plants with aguaranteed power level close to their peak power. The project's geographicallocation is presented in Annex 17.

2.1.2 The above-mentioned study coniained a . ''technical feasibility''component which made it possible to select the most suitable site for theconstruction of the dam. The sedond ''economic feasibilityu ' componentdetermined the size of the dam and specified the need to incorporate in it, intime, a hydro-electric power plant to meet the energy requirements of the townof Bangui. Finally, the detailed preliminary design made it possible toaccurately define the structures with a view to pre/aring the biddingdocuments.

2.1.3 At the request of the Central African government, the originalproject for the construction of the storage dam on the M'bali has become areal development programme affecting a' 11 the energy sub-sectors. The WorldBank played the role of principal donor. On that basis, the AfricanDevelopment Bank undertook a preparation mission on the M'bali hydro-electricdam, the principal component of the first ENERGY progrnmme. The project wasappraised in August 1988 and approved by the Board of Directors in November,1988. In the meantime, at the end of- August 1988, a meeting of the differentdonors was held at the Bank's Headquarters in Abidjan to award the contractsfor the dam construction and define the financing terms. The ADF loanagreement for an amount not exceeding UA 11,052 million was signed in May,1989.

Preparation, Appraisal, Neqotiations and Approval

2.2.1 As mentioned in paragraph 2.1.1,* the project was prepared in thecontext of the cFD-finaùced study concerning a reduction in CAR's dependencyin oil products. The detailed preliminary designs and the bidding documentswere prepared by the consulting firm, COYNE and BELLIER.

2.2.2 The different studies, in particular the feasibility studies anddetailed preliminary designs were satisfactorily prepared. The Borrower's andexecuting agency's engineers were closely involved in the conduct of thedifferent studies.

- 8 -

2.2.3 ADB'S intervention in the preparation process was at the level of thedonors meeting organized by it and during which major decisions were taken onissues concerning financing, procurement procedures and works scheduring. Inaddition, the Bank permitted a rapid start-up of the project by allowing theearly issue of invitations to bid for the dam construction contract. Finaîly,in its concern to ensure the financial viability of the project, the Bank,duèing its appraisal, recommended the modification of the tariff structure aswell as on increase in electricity rates.

2.3

u ej

6 .% w

.'. .. .w- .# ... .))i4. c.

Lonc-term Role of the Pron'ect

Despite the existance of substantial hydro-electric potehtial, thegeneration of hydro-electric power in the Central African Republic has alwaysbeen hampered by the sharp fall in the flow-rate of the River M 'bali duringthe dry season. During that period which lasts, on average, för 6 monthsevery year, the two run-of-river hydro-eleetric power plants are operating at20% of their peak capacity, thus resulting in a very costly use of thermallygenerated electricity. The M'bali dam construction project is intended toensure constant hydro-electric power generation by regulating the flow rate ofthe M'bali throughout the year. It thus contributes, on the one hand tomeeting the electric power requirements of Bangui and on the other, toreducing the countryes dependence on hydrocarbons for the generation ofelectricity. It also provides a larger section of the population of theCentral African Republic with access .to electricity.

2.4 Proqect Description

2.4.1 As defined and appraised by ADF the HElectricity II* projectcomprises the following components: i) construction of a regulating dam on theM'bali; ii) the rehabilitation of the town of Bangui's distribution network;iii) porcurement of a 5 MW diesel generator for the Bangui thermal plant; iv)the rehabilitation of the Boali l and 2 hydro-electric plants; v) institutionbuilding; and vi) preliminary reconnaibsance work prior to oil prospection.This project, as described, has not been fully completed. Only components i),iii) and iv) have been completed.

2.4.2 As it appears from the preceding paragraph, the ''Electricity 11''project is more of a sectoral progrnmme with different components which couldbe implemented independently, b0th .physically, in the case of some andfunctionally in the case of others. The ADF financing exclusively concernedthe component relating to the construction of the M'bali dam. In view of thestatus of implementation of the other components prèsented in Annex l4, the

t letion mission principally focussed on the ADF component whichprojec compwill, therefore, constitute the ''project'. which is the subject of this report.

2.4.3 The work carried out under the M'bàli hydro-electric dam projectconcerned the following principal structures and services:

. ''

a) the mixed dam comprising a central concrete section and wingscomprising rock dikes against the concrete structure and evenearth on the banks. The height of the dam is 29 m and its totallength and top width respectively 780 m and 6.l m. The concretestructure is of the gravity dam type with a lO4 m longhydro-electric plant incorporated, performing in addition thefollowing functions: spillway, bottom outlet, and water intake;the spillway is of the uncontrolled type with two 30 m long

3/sec; the bottomsections each capable of discharging 960 moutlet comprising a reinforced rectangular pipe located in theaxis of the concrete structure, 30.5 m long with a',4 x 5 m cyosp:section and eqùipped upstream with a 4 x 5 m fixed wheel FuM4dtkè .and downstream by a 4 x 4. radial qate; the maximum f l6w zvékqtébxbLik'wb.q,

' e.

3/s;295 m

b) the transfer and rehousing of the population comprising: i)compensation and the rehousing of 685 inhabitants in four (4)village groups; ii) the establishment of three wate: pointsequipped with pumps, a 3-classroom primary school with a housefor the headmaster and a health centre (dispensary and maternityunit) with two (2) houses for the two administrators;

the diversion, for aroundRNI, including two bridges;

the reafforestation:round 16.41 ha;

the deforestation of the reservoir over around 1,800 ha;

km of the tarred national highwayc)

d) of the reservoir banks over an area of

e)

f) the construction of 8 km of 30 kv line from the Boali 2 plant tothe M 'bali dam through the town of Boali - an intersection wherearound 4 km of the LV network have been completed;

g) the building of 2.8 km of feeder roads;

h) engineering, wprks inspection and supervision;

technical assistance to the executing agency's project unit;

j) the strengthening (rehabilitation) of the 60 kv Boali-Banguiline which essentially comprises work to replace various itemssuch as insulators, conductors, etc...

2.4.4 The completion of this work has helped to improve electric powersupply security of the town of Bangui while permitting a substantial reductionin the country's dependency on oil products for the generation ofelectricity. The project has, moreover, ensured an improvement in the housingof the resettled population and the establishment of basic health andeducation facilities due to the implementation of the environmental action

programme related to the project.

2.5 Contracts

2.5.1 The above-described ''Dam'' component was implemented through severalcontracts depending on the type of work and, especially, on the basis of thesources of financing. Thus the actual dam construction works, cofinanced byADF, IDA and the Kuwaiti Fund were implemented under a single contractincluding the feeder road, and awarded subsequent to international competitivebidding in accordance with the Bank rules of procedure. The successful bidderwas the Chinese company, CHINA INTERNATIONAL WATER AND ELECTRIC CORPORATION(CWE).

2.5.2 All the other parts of this component were the subject of separateand independent contracts, awarded in accordance with the particular rules ofprocedure of the donors concerned. The contract concerning the deforestation,reafforestation, population rehousing and construction of the 30 kv line wereawarded following local competitive bidding. The engineering consulting 'services for the engineering works and works inspection and supervisionfinanced by CFD and only concerning the dam construction works were thesubject of a contract awarded to the French company, COYNE and BELLIER. Thisfirm had previously conducted the feasibility studies and prepared thedetailed preliminary de4igns as well as the bidding documênts. It alsoevaluated the bids of pnterprises submitting bids for works contracts. 'Thecontract for the rehabiliEation work on the 60 kv Boali-Bangui line, alsô.financed by CFD, was awarded to SPIE-ENERTRANS (France). Finally, a contkaçtfor technical assistance to the #roject implementation unit of the exedut.kvhgagency, financed by IDA, wav awarded to the Canadian consulting firm, CANADIANINTERNATIONAL POWER SERVICES INC. (CIPS).

- 10 -

PROJECT IMPLEMEN- -TATION, OPERATION AND COST

Loan Ef f ectiveness and Proqect Start-up

5 !:3.1.1 The loan agreement for this project was signed on 28 May, 1989 i.e.

around six (6) months following the approval of the loan by the ADF Board ofDirectors on 23 November, '1988 (The condition of loan effectiveness are givenin Annex 15). These conditions were very quickly fulfilled since the daie ofloan effectiveness was 16 June 1989 i.e. scarcely three (3) weeks aftër thesigning of the loan agreement.

3.1.2 The start-up of copstruction work on the M'bali dam was, in no way,behind the forecast schedule in so far as, when the project was appraised inAugust, 1988, the enterprise selection process was already completed and theprovisional successful bidder for the works contract knowh. The contract wassigned on 13 October of the same year and works implementation was, therefore,able to commence as planned in November 1988. The official foundation stonelaying ceremony took place on 21 December, 1988.

3.1.3 For a hydro-electric scheme project on the scale of M'bali, thecontract award procedures for which are long and complex, the effectivestart-up of works within the deadlines should be considered as a very goodperformance especially in view of the fact that CAR is a landlocked country.However, such a performance was only possible because the actions concerningthe procurement of goods and services were implemented and fully completedprior to the appraisal of the project by ADF as mentioned above in paragraph3.1.2.

3.2 Revisions

3.2.1 There were very few modifications to the M'bali dam project duringconstruction and the final structures are very similar to those drawn in thedetailed preliminary designs. However, as is the case on all large sites,some minor modifications were necessary due to actual site conditions andimplementation difficulties encountered. There were, more specifically,modifications to the initial project, the most important of which were:

deflectors were attached to the spillway on thp lower third of theillway chute to imp/ove.the dissipation of energy in the eventsp

of exceptionally high water;

the alignment of the plant penstocks was altered to make themparallel)

the placing of protective rockfill (2 tonne blocks) at thedownstream foot of the rockfill dikes and near those areas subjectto erosion in the event of discharge; and

the extension, to the dam, of the 30 kv power line from the townof Boali an intersection, to supply the site with electricity aswell as the dam equipment instead of the thermal plant planned forthat purpose.

3.2.2 considered overall, these modifications had no significant impact inthe original bills of quantities and did not lead to any increase in the valueof the contract. Even the extension of the 30 kv line, completed by ENERCAemployees with IDA-financed equipment, was completed without ahy negativefinancial impact.

. . . j , ' .:: P- 1 l ... . . .. .,

.y. z y. .. >'

3.3 Imolementation Schedule .. .. x:y N.. . ?.'.:;' .. ozw

3.3.1 In relation to the schedule proposed in the appraisal report, theeffective works start-up did, in fact, take place in the 4th quarter of 1988more exactly on the 16 November, 1998 with the site installation, the openingof the feeder roads, the installation of the thermal plant and the crushingstation, etc. The dam was filled on 3 November, 1990 and provisionalacceptance of the civil works was on 31 March, 1991 and of thehydro-mechanical equipment on 31 May, 1991. The latter was delayed inrelation to the civil works, due to transport problems from the port of Doualasubsequent to the social unrest in Cameroon at the time.

3.3.2 Overall then, the M'bali dam construction works were about four (4)months behind the estimates of the appraisal report dn the basis of theprovisional date of acceptance of the civil works. On the basis of thecontractual provisions on the other hand, this delay was only two months.Finally on the basis of the dam filling date scheduled for 1 November 1990,the delay was reduced to only two (2) days. Moreover, if it is consideredthat there was a work stoppage for the entire month of June, 1989 due to thenon-payment, on the basis of the contractual schedule, of startiup advances asa result of difficulties encountered regarding the effectiveness of thedifferent loans, it may be conceded that the delay incurred is negligeable inso far as it had no negative impact either on the project cost, or thetargetted production goal.

3.3.3 While the dam construction works and other sections of this componentwere implemented within satisfactory times in relation to forecast, the samecould not be said of the e'rehabilitation of the 60 kv line.', work on which hashardly begun. The estimated implementation period is 12 months and workscompletion is expected by June, 19é5.

3.3.4 Throughout the entire project implementation period, quarterlyactivity reports prepared by the engineering consultant, were regularly sentto all the donors. In all: ten (10) reports were thus addressed to ADF, whichis in compliance with the 'effective duration of the dam works. When the

project was provisionally accepted, the engineering consultant also prepared awrap-up report followed by a provisional acceptance report one year later.All these documents have been used as sources of information for thepreparation of this project completion report. Finally, ADF received six (6)reports from the committee of three experts commissioned by the Government forthe specific technical monitoring of the different major phases of the damconstruction.

3.3.5 The engineering consultant's quarterly reports were generallywell-prepared, and the donors . never had to call into question the quality ofthe information and analyses provided, b0th in relation to the physical and

financial implementation of the project and regarding the problems encounteredand the solutions proposed or adopted, and, .in general, confirmqd by thecommittee of experts. The reports thus provided all the information and dataon works status, the billing situation, the necessary technical modifications,implemented or to be scheduled, and finally the claims made by the enterpriseand, where necessary, the appropriate action to be taken.

3.4 Procurement of Goods and Services

The procurement of goods and services for the construction of thedam, financed by ADF, IDA and the Kuwaiti fund was done through internationalcompetitive bidding in accordance with the Bank's rules of procedure. Thesuccessful contractor was selected after bids had been submitted by tw:qty(20) bidders which had previously been retained on the basis of aprequalification procedure. The selection of the engineering consultant andthe enterprise responsible för the 60 kv line rehabilitation work was made by

d 'With the rules of procedure of CFD which financedthe Government in accor ancethqse services.

- 12

3.5 Cost and Disbursements

A. Proqect Costs

3.5.1 For purposes of comparison, the real project cost was expressed inUAs and determined on the basis of amounts expressed in CFA francs. Sincepayments to enterprises were made in different currencies (US$ and FF) thereal exchange rates of these currencies were used to establish the realproject financial situation. The calculation of the final total project costwas made by the engineering consultant on the basis of September 1990 exchangerates. The dollar was then the equivalent of CFA.F 291.65 and the rate of theUA against the dollar was 1.38631. The UA in relation to the French franc wasthe equivalent of 8.0820. Table 3.l below presents the comparative estimatedcost, market cost and real costs of the project on works completion.

Table 3.lDam Component

comparative Table of the Dam component Cost(in thousands of UA)

Sections

A. Dam and feeder roadsB. RNl DiversionC. Rehousing of populationD. Deforestation & reforestat.

24,548 18,202- 3,841276 52683 955

line 82l 2,046

- 26

- 8l+68+149

+113- 33

22,1643,841

711,5022,046

297302

2,25432,477= = = = = =

- 74+164+149

+113- 33+31+13

= = = =

E. Rehabilitation of 60 kV(*)F. Construction of Boali II,

Boali intersection lineG. Assistance to M'bali missionH. Works inspection and superv.

Total

l39 297545 302

1.718 1,71428,730 27,409= = = = = = = = = = = =

(*) The power line rehabilitation work has not yet been completed.

3.5.2 An analysis of the above table leads to the following observationsand conclusions:

Cost at Market Difference Real DifferenceAppraisal Cost as % Cost as %

- l0

overall, the real project cost is significantly higher than theestimated cost at appraisal and the market value. Thisdifference is maihly due to the fact that, at appraisal theconstruction of the 7 km diversion on tùe national highway hadnot been taken into consideration. This new item was entirelyfinanced by the World Bank under the Transport Sector Project andeffectively represents 13% of the total cost of the dam componentat the time of appraisal. Apart from this component, the actualproject cost is 0.3% below the estimated project cost which ismore than satisfactory and rare for such a project;

ii) items ''D, E, F, and to a lesser extente item H'' were the subjectof major overruns on the amounts projected at the time ofappraisal. While, in the case of the Boali z-Boali intersection30 kv line this difference was primarily due to the extension ofthe line to the M 'bali dam site, the increase in the consultingengineer's cost is due to unexpected additional servicesrequiring 3 amendments. The cost overrun on ''Deforestàtion . -

TI ' ( ' ' '' .Reforestation is due to the fact that, at the time of ptpjkèt: .. .1.. iy ? .appraisal only a roûqh cost estimate was available sin:'é thë

investigation studies were only conducted later. The overrun onthe ''rehabilitation of the 60 kv linee is due to the delay in itscompletion which' is now five (5) years; and

- l 3

finally, it is important to note that there is an undrawnbalance on the dam works, the object of the ADF loan, of aboutCFA.F lO0 million. For a project of this type and complexitythis is an outstanding performance which should be underlined.

B. Disbursements

3.5.3 The different donors contributed to the financing of the project asindicated in Table 3.2 below:

Table 3.2Financinc Planw

(in thousands of UA)

At aporaisalF.E. L.C. Total %

At works completionF.E. L.C. Total %

4,420 6,630 11,050 372,364 7,488 9,852 332,082 3,015 5,097 172:029 225 2,254 8

- 1,508 1.508 510,895 18,866 29,761 l00= = = = = = = = = = = = = = = = = = = = =

37% 63% 100*

Sources

ADFIDAK.F .CFDGov,Total

Percentage

8,518 2,584 11,102 388,735 8,735 315,241 5,241 181,926 340 2,266 8- 1,386 1.386 5

24,420 4,310 28,730 100= = = = = = = = = == = = = = = = = = =

85% l5% 100%

This plan only considers the completed subcomponents (including therehabilitation of the 60 kv line). '

3.5.4 The above table first of all shows a difference of UA 0.67 millionbetween the actual project cost, without the rehabilitation of the 60 kv linesubcomponent (UA 30,431 million), and the total amount of financings (UA29,761 million). This difference is due to the fact that the amountsdisbursed by the sources of financing were converted into UA taking intoconsideration the trend of the exchange rates of the different currencies ofpayment against the UA while the actual cost was calculated on the basis ofthe value of the works converted into UAs at the rates effective as on 30September, 1990.

3.5.5 An analysis of the table shows that, in comparison with the financingpercentages, the financial contributions of the different sources haveremained virtually unchanged. The ADF and Kuwaiti Fund had participationpercentages 1% lower than at appraisal while that of the World Bank increasedby 2%. These differences are.. related to the real contract costs, inparticular that for the dam works and in no way reflect changes in thefinancial packages prepared by the donors.

3.5.6 In comparison with the loan amounts granted by donors, the mainfeature of the financial situation on completion of the project is thenon-existence of balances on the loans of the different donors. Only on theADF loan is there an undrawn balance of UA 755.

- l 4 -

3.5.7 Local currency expenditure which was estimated at l5% of the projectcost at the time of appraisal, finally represented 63A of the real projectcost. This was primarily due to the fact that the dam component whichrepresents 73% of the project cost: comprises a major civil works subcomponentthe implementation of which did not require substantial foreign exchangeexpenditure.

3.5.8 Table 3.3 below presents the expenditure schedule by source offinancing for the entire dam projeets. This document had been prepared at thetime of appraisal but concerned the ENERGY programme. A comparativeexpenditure schedule statement cannot, therefore, be prepared.

Table 3.3Dam Component .

Expenditure Schedule bv Source of Financinq(in thousands of UA)

2,0291,330894487

4,740= = = = =

l6+

5,905 1,755 1,3615,779 1,573 6642,406 52 -1,126 332 3091,420 42 46

16,636 3,754 2,380= = = = = = = = = = = = = = = =

56% l2% 8%

zr zàSource

M FIDAK.F.CFDGovernmentTotal

Percentage

- - llyoso372 l34 9,852- 1,745 5,097

- a,2s4- . l.so8372 1,879 29,761= = = = = = = = . = = = = = =

1% 71 100*

1994 Total

3.5.9 An analysis of this table shows that the bulk of the civil works wereimplemented in 1990 which constituted the project's critical path. Between1989 and 1991 expenditure already represented 84A of the project cost.Expenditure indicated for 1994 represents in particular an unpaid amount of UA1,745 from the Kuwaiti Fund following the suspension of disbursements on loansto CAR. It should be underlined that, throughout the implementation of theproject the World Bank took over from the Kuwaiti Fund. During the Gulfcrisis, the Kuwaiti Fund's disbursements were fully covered by the WorldBank. This prevenied many obstacles to the implementation of the project.

3.5.10 Table 3.4 below shows the expenditure schedule for the Day and feederroad component, the object of the ADB financing.

Table 3.4Dam Construction and Feeder Road ComponentExpenditure Schedule bv Source of Financinq

(in thousands of UA)

1989 1990 1991 1992 1993 1994 Total +

2,029 5,905 1,755894 2,406 52

1,307 2,086 1,4754,230 10,397 3,282= = = = = = = = = = = = = = = =

l9% 47% 15A

Source

M FK .F .IDATotal

Percentage

1,361

5561,917= = = = =

9%

372372= = =

21

- 11,050 50+1,745 5,097 23%134 5,930 27%

1,879 22,077 100%= = = = = = = = = = = = = = =

8% 100*

- l 5 -

3.5.11 The ADF financing thus represented 50A of the cost of the damcomponent of the project compared with 27% for the World Bank and 23% for theKuwaiti Fund. The project critical path analysis in paragraph 3.5.9 isconfirmed by this table.

3.6 Operations

3.6.1 From an operations standpoint, the M'bali hydro-electric dam has morethan achieved al1 its targetted technical and financial objectives, if it isconsidered that the performance shortcomings noted are rather due to theeconomic environment which was unfavourable to increased electric powerconsumption on the one hand, and, on the other the delay in the implementationof some bf the components of the Energy project, in particular that relatingto the rehabilitation and extension of the Bangui electric power distributionnetworks. Despite this unfavourable background, the dam has been able tosignificantly increase the proportioh of hydro-electric #ower output whichaccounted for 99.1% of the total output of the Bangui electricity' grid in1993, while it had not exceeded 87% prior to 1991 when the dam wascommissioned.

3.6.2 At an operations level, ENERCA has established, in a professional andresponsible manner, the necessary line and technical structures to enàuresound technical management of the dam and its supervision. This,. rigorousmanagement of the reservoir in coordination with the operation of the Boali land 2 plants is guaranteed throughout the dry season, and the dam monitoringoperations and its routine supervision are carried out regularly. Theseduties are performed by three employees under the responsibility of atechnical officer of the general studies' service of the ENERCA GeneralDirectorate. A1l this staff was part of the engineering consultant's on-siteteam and received appropriate training.

Performance of Consultants, Contractors and theExecutinc Acencv

3.7.1 The final project design, the detailed sketches and preparation ofbidding documents as well as engineering and works inspection and supervisionservices were all assigned to the consulting firm, COYNE ET BELLIER. Fromevery standpoint the services provided by the Engineering Consultant wereexcellent. On all technical and financial issues, he was a competent andloyal adviser of ENERCA using his know-how, and showing appropriate care anddiligence to the project manager. The number and quality of his experts wereconstantly adapted to real requirements and the different site developmentstages. Furthermore, the engineering consultant was responsible for on-sitestaff training. By encouraging the timely solution of specific technicalproblems and difficulties which arose during implementation of this work thecommittee of experts also made a substantial contribution to the success ofthe project. '

3.7.2 CWE, which was awarded the dam construction contract: particularlyk .distinguished itself by the excellent quality of its work, xts complianc? with

deadlines and good site management. It always maintained very good relationswith the engineering consultant and the executing agency. In view of itscompliance with the high quality of the structures completed and theachievement of al1 the financial and technical targets, it is undeniable thatthe performances of the Engineering consultant and the enterprise may bequalified as excellent. From an implementation standpoint, the M ebalihydro-electric scheme may be considered as a total success.

16

3.7.3 By performing promptly and correctly its many duties and obligations,ENERCA the executing agency, also made a major contribution to the success ofthe project. It thus participated satisfactorily in the fulfilment of theloan conditions, the supervision of the project implementation work, anddiligently and efficiently processed .all disbursement applications by assumingresponsibility for following them through to the final payment of theenterprises concerned. Furthermore, the executing agency ensufed themaintenance of good relations of frank collaboration with the enterprise andthe consultant with whom its relations were particularly close since they fellwithin the scope of on-going decision-making. Finally, it ensurede andparticipated in the periodie preparation of monthly and quarterly worksprogress reports on the basis of donors norms and specifications.

OPERATING PERFORMANCE

The Market

4.1.1 One of the major objectives assigned to the dam construction projectwas to meet Banguies electric power requirements up to 2005, by making themaximum use of the water resources provided by the M'bali site. Theconstruction of the storage dam upstream from the Boali l and Boali 11 plantmade it possible to regulate the flow of the M'bali throughout the year andthus increase output of hydro-generated power from 65.8 GWh in 1991 to 98.2GWh in 1992 and 92.8 GWh in 1993.

4.1.2 However, annual power output was below forecast at the time ofappraisal as indicated in the following table.

Table 4.lComoarative Statement of Actual and Forecast Outputs

of Hvdro-oenerated Power(in KWh)

Actual Estimated Difference

199119921993

65.898.292.8

99.8114.9120.3

- 34%- 14%- 22*

4.1.3 These poor performances are primarily related to the economicsituation in the Central African Republic since 1991, characterized by aseries of strikes and the total or partial shutdown of major economic units.Secondly, the rehabilitation work on the Boali 11 plant increased the numberof outages, thus contributing to a decline in output. Finally, the delay inimplementing the work on the rehabilitation and extension of the Banguidistribution network prevented the achievement of the planned increase due tothe connection of new customers.

4.2 The Proqect Role

4.2.1 The M'bali dam construction project is a key component of the firstmedium-term development project of the energy sector in CAR, entitled''ENERGM 1:'. The other components of this programme concern: i) therehabilitation of the Bangui network; ii) the procurement of a dieselgenerator; iii) the rehabilitation of the Boali I and 11 plants; iv)institution building; and v) oil prospection.

*

17 -

4.2.2 At the same time as the increase in hydro-electric output,construction of the dam made it possible to significantly reduce ENERCA'S oilbill. In fact, since the share of hydro-power in the total output of theelectricity system rose from 80A in 1988 to 99% in 1993, ENERCA 'S oil bill wasCFA.F 55 million in 1993 compared with 1150 million in 1988. Furthermore,outages due to low water power during the dry season have become rare.

4.2.3 Finally, the M'bali dam constitutes the first part of a possiblestrategy to develop the means of energy generation through the establishmentof a plant with an installed power of 9.6 MW on the project site.

other yu c--ko. rs

4.3.1 The project made it possible for the works contractor to use asubstantial amount of local labour. The workers and labourers employed duringthe construction period were recruited from the population of the project area.

4.3.2 The contribution of the project to the training of ENERCA staff wassubstantial. In fact not only were the Central African Republic counterpartsof the consultant able to acquire experience in the conduct of future similarprojects, but also some of the project works were implemented on force-accountby ENERCA under the supervision of the contractor.

4.3.3 At a social level, the project made it poslible to improve thehousing and living conditions of the rehoused population. The project helpedto reduce water-borne diseases by establishing boreholes in the rehousingareas. The bùild. ing of a school and heaïth centre are considerable projectachievements. Moreover, it made it popsible to improve the population's foodsupply through the consumption of fish, the establishment of small businessesand new artisanal activities such as the building of dug-out canoes and themanufacture of fishing nets.

4.4 Impact on Women

4.4.1 In the rehousingfisheries have increased.length and breadth of thein the capital.

area, agricultural activities (cassava growing) andThus women traders known as ''Ouali gala'' cross thearea from Bangui to buy cassava and fish for resale

4.4.2 The three waterpoints established in the resettlement arel havehelped to ease the drudgery of women's chore of fetching water for householduse. With regard to health, women now have a maternity in the health centre.

4.5 Environmental Impact

4.5.1 Under the M'bali dam construction pr6ject, an environmental actionprogrnmme was designed and fully implemented. The post-evaluation studyconducted on completion of the implementation of this progrnmme concludedthat, despite the major change in the ecosystem and some modification of thenatural conditions, the environment-related problems were, on the whole,correctly identified and satisfactorily resolved, particularly with regard tothe transfer and rehousing of the population (paragraph 4.3.3) and thepositive impact on women.

4.5.2 However, some of the weaknesses noted could constitute seriousimpediments. In fact, the deforestation of the reservoir was not completeddue to start-up delays and insufficient equipment. Consequently, tree trunksare rotting in some parts of the lake thus creating a sure risk of waterpollution. Similarly, the reafforestation of the lake banks is still notcompleted since the National Forestry Board which was . awarded the s#udie'p'contraet submitted its report wiEh considerable delay.

- l 8 -

FINANCIAL PERFORMANCE

5.l Operatinq Analvsis

5.1.1 This analysis was conducted on the basis of the table in Annex 8representing a comparative statement of the estimated operating accountsprepared at the time of appraisal and those appearing on ENERCA'S financialstatements' for the 1989 to 1993 period.

5.1.2 ENERCA'S operating income was well below forecast at the time ofappraisal. In fact, over the period under consideration, it only increased by5% from CFA.F 3,680 million to CFA.F 3,864 million, for an estimated amount ofCFA.F 6,398 million for the 1993 financial year, and a 5l% increase forecastbetween 1989 and 1993. In fact, the income trend was irregular. From 1990 to '1992 it fell steadily due to a fall in electricity output related to therehabilitation work on the Boali I and 11 plants and the natiohal social andeconomic situation on the one hand and, on the other the high level of overalllosses which attained 40% from 1991 agdinst forecasts of 20+ The fall inenergy sales continued in 1993 but was offset by an increase in otheroperating revenues. The 1994 financial year will undoubtedly reveal someimprovement with regard to energy sales with the reduction in losses whichcurrently stand at around 27% and the 15% tariff increase in May, 1994.

5.1.3 At the same time, ENERCA'S operating costs increased by 49A fromCFA.F 3,164 million in 1989 to CFA.F 4,732 million in 1993 due to theconsiderable increase in ''the wage costse, ofinancial costs. and''Amortization'' items which, overall represented 105* oi the operating incomein 1993. Moreover, ENERCA suffered major non-operating losses (431 ofturnover in 1993) due to provisions for exchange rate losses on foreignexchange borrowings.

5.1.4 At any rate, contrary to the estimates at the time of appraisal,ENERCA 'S results have shown an underlying loss since 1990 and cumulativelosses represent CFA.F 5,243 million, i.e. 109* of the enterprise's equitycapital. The operating ratio reached 122* in 1993 against a forecast of 80%at appraisal and which was even below the working ratio (92* in 1993).ENERCA'S operations were affected by: i) an inadequate tariff level to ensurethe firm's viability; ii) an incohesive wage policy resulting in an increasein costs while staff was decreasing; and iii) the delay in the rehabilitationof the Bangui network as well as that of the Boali-Bangui 60 kv line.

Proiected Operatina Analvsis

5.1.5 The assumptions used in the preparation of ENERCA'S projectedoperating accounts, presented in Annex l6, appear on page 2 of Annex l0.

5.1.6 It appears from a review of the projected operating accounts thatwith an increase in hydro-electric power generation which requires noadditional investment as a result of the construction of the M'bali dam, a

reduction in the rate of overall losses to 20% and a 30% tariff readjustment,ENERCA should achieve an operating surplus from 1995, and cumulative profit inthe region of CFA.F 26 billion between 1995 and 2000. Moreover, the financialrestructuring which will be implemented following the study on the financialbalance (see para. 5.2.3) is bound to have a positive impact on the financialand amortization costs of ENERCA.

5.2 Analvsis of the Financill Structure

5.2.1 The appraisàl report does not contain a forward analysis of EN;.RCA'Sb !:financial structure

. The table in Annex 9 gives a summary of ENERCA'S b'llu*wh.cesheets for the 1989-1993 period.

75

-. l 9 -

5.2.2 The financial 'structure is considerably imbalanced. The enterprise'sequity capital has been fully absorbed by its operating losses to the extentthat ENERCA is completely insolvent. The working capital trend is irregular.As at 31 December, 1993, it was -CFA.F 700 million. The long-term debt ratiowas 34 in 1991, then reflecting the company'à high level of long-term debts.The debt ratio (1% in 1993) demonstrates the need to recapitalize thecompany. Since 1990, the rate of return on fixed assets has been negative.

5.2.3 The stabilization of ENERCA'S financial situation requires areduction of capital. Capital would be reduced through the absorption oflosses and then increased by, inter alia, the incorporation of debts cancelled

'

by various donors and on-lent to ENERCA as- well as a cash contribution. Inaddition, the enterprise could conduct a revaluation of its fixed assetsfinanced by external borrowings. This operation would generate a capital gainwhich would reduce the exchange losses on unrepaid borrowings by the sameamount. The study on ENERCA'S financial balance to be initiated in early1995, on World Bank Financing, will attempt to study al1 those aspects andwill also include a tariff study componene which will make it possible todetermine the tariff level guaranteeing the enterprise's financial viability.

5.3 Financial Ratx of Return

5.3.1 The assumptions on which the calculation of the FIRR is calculatedare not presented in the annexes of the appraisal report. Furthermore, itwould appear that a1l ENERCA'S sales are attributable to the project. We alsohave reservations regarding this calculation which gave a finapcial andeconomic rate of return of 23.2%.

5.3.2 The assumptions for the calculation of the FIRR on completion of theproject are presented in Annex l0. This rate solely concerns the constructionof the M'baiki dam since the other components of the Energy progrnmme are notall completed.. By assigning to the project the net additional output ofhydro-electric power without taking into consideration the existing operatingconditions of the transmission line and the electricity network, the IRRstands at 13.54*. By taking into consideration the real operating conditionswhich reveal a 30+ rate of overall losses till 1994 then 20% until 2000, theproject IRR stands at 11.69%. The FIRR calculation table is given in Annex 1l.

5.3.3 This rate cannot be compared with that determined at the time ofappraisal which concerned the integrality of the ENERGY l progrnmme. In anyevent, compared with the average weighted cost of capital which is around6.6+, this rate of return is correct. However, it assumes that the tariffstudy, which will be conducted in 1995, will recommend an increase in existingtariffs of at least 30% from 1996.

5.4 Economic Rate of Return

5.4.1 The assumptions underlying the investment and operating economiccosts are the same as those of the financial study. With regard toelectricity tariffs, we considered the actual production cost of a thermallygenerated KWh the other project option.

5.4.2 The project economic rate of return stands at 27.7% (Annex 12). Atthe time of project appraisal, the economic rate of return for the entireprogrnmme was estimated at 23.21 as was the financial rate of return, whichappears paradoxical in so far as the dam construction project was a lessexpensive alternative than an increase in thermally generated output.

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PERFORMANCE OF STRUCTURES

6.l Leqal and Institutional Framework

6.1.1 The legal status of ENERCA has been substantially modified since theappraisal of the project in 1988. In fact, by decree No. 92208 of 22September, 1992 concerning the application of law 91014 of 25 September, 1991concerning the organization of the institutional and legal frameworkapplicable to enterprises and public authorities, ENERCA was established asstate enterprise as opposed to a public utility. It thus becomes a legalentity under public law but operating under the private legal system. Itssocial purpose remains the generation, distribution and marketing of electricpower throughout the territory of the Central African Republic.

6.1.2 This modification which reflects the political will to increase theenterprise's management autonomy, is reflected in the adaptation of thearticles to the new legal setting. ENERCA thus acquires ap equity capital ofCFA.F 4,804,948,024 entirely held by the State. In addition, the enterpriseis supervised at three levels instead of two at appraisal. The Ministry ofEnergy and Mineral Resources is responsible for the technical supervision, theMinistry of Finance financial supervision, while management supervision is theresponsibility of the Delegation to State and mixed enterprises, andGovernment Agencies.

6.1.3 A new inspection and supervisory organ has been established andcalled the Superivisory committee. This or'gan, comprising 4 members appointedby an order in council, is responsible for defending the State's interests asa shareholder and thus plays a shareholders'. meeting role. It appointsmembers of the Board of Directors and the auditors. Decisions related: i) tothe procurement or alienation of corporate assets; ii) the acquisition ortransfer of equity participations in other companies; iii) increases orreductions in equity capital; and v) the liquidation or early winding-up ofstate corporations are submitted for its approval. Thus, through its ownprerogatives, the Supervisory Committee is helping to remove the red-tape frommost of the major management decisions.

As of6.1.4 part this process of reducing the State's direct interventionin the management of state corporations, ENERCA and the Government of theCentral African Republic signed a perfprmance contract on the 9 December, 1989for the 1990 to 1994 period. This contract defines the commitments of the twocontracting partners and determines the means and framework of intervention ofENERCA. The results of this initial contract are somewhat mixed. Theobjectives set for ENERCA could not be attained, mainly due to thenon-compliance of the State with its commitments, particularly with regard totariff policy and non-interference in the management of the enterprise. A newcontract is under preparation for the 1995-199* period. In its formulation,this new performance contract really takes into consideration the need tocarry out a financial restructuring of ENERCA'<'Y hiIe guaranteeing adequateelectricity tariffing.

6.2 Orcanization and Manacement

6.2.1 ENERCA is still administered by a Board of Directors, the members ofwhich fell from 9, at the time of appraisal, to a minimum of 3, and a max imumof 7 since January, 1994. 'his Board is vested with the widest powers to acton behalf of ENERCA and authorize al1 acts concerning its social purpose underthe 1aw and its articles. The Board of Directors delegates its powers to aDirector General, assisted by a deputy Director-General b0th appointed by anorder in council.

21

6.2.2 Since the appraisal, the ENERCA organization chart has been radicallychanged. It is presented in Annex l3. In addition to the GeneralDirectorate, it comprises three Directorates (instead of four at the time ofappraisal). While the ''GENERATION and TRANSMISSION'' and ''FINANCIAL ACCOUNTSSERVICES'' directorates have remained, the other two directorates existing atthe time of appraisal have been merged into a DISTRIBUTION AND COMMERCIALDirectorate.u In addition, several services have been established or removedand directly attached to the General Directorate.

chart could6.2.3 The present organizational be improved by beingrebalanced since the General Directorate appears overloaded in relation to thetechnical directorates. Moreover, the areas of intervention of the differentservices were not clearly defined, resulting in frequent conflicts ofcompetence and excessive slowness in the distribution of information anddocuments. However, improvements have been made to the weaknesses noted bythe appraisal mission concerning customer management and recover'y activitiesand management of statistics and studies. Services hàve been created toremove these bottlenecks.

6.2.4 In any event, ENERCA should insist on the improvement of its internalmanagement. The first measure will involve the implementation of an adaptable

hart with a precise redefinition of the scope ofand functional organization cactivities of each service. In addition, some services should be beefed up tofully play their role in the enterprise.

6.3 Staff and Trainina

6.3.1 As at 30 September, 1994 ENERCA had a staff of 420 compared with S63at the time of appraisal, i.e. a fall of 25+. The following table presentsthe comparative status of the breakdown by category of staff of the enterpriseat appraisal and on preparation of the çompletion report.

Appraisal PCR

Management staffSupervisory staffLine staff

Total

44l44375563= = =

49l96l7S420= = =

6.3.2 It thus appears that the greatest changes have occurred with regardto line staff which fell by 53* between the two periods under consideration.In fact, ENERCA abolished positions which no longer fitted within its

d d or retiredprincipal activities (painters, carpenters...). Moreover, eceasestaff members were not replaced. However, the principal feature of thepresent staff structure is an imbalahce 'in the category breakdown pyramid.

i ' ff znThe pumber of supervisory staff s higher than that of line sta .addition if the fact that about thirty supervisory staff are occupyingmanagement functions with the relevant material benefits taken intoconsideration, the real sùpervision rate at ENERCA is currenEly around 23%compared with 9% at .appraisal.

6.3.3 The reduction in staff and the increase in the number of connectionshave made it possible to improve the rate of productivity which improved froml employee per 13 customers at appraisal to l employee per 23 customers atpresent. However, this ratio remains slightly below the performance contracttarget (1 employee per 24 customers). The new connection policy adopted bythe ENERCA directorate ensure that this ratio is improved. ,

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6.3.4 The training policy begun in 1989 and highlighted by the appraisalmission was not pursued. In fact, since 1991 the contract of the threetechnical assistants financed by FAC have not been renewed and the activitiesof the training centre have been virtually suspended. They boil down to a fewseminars conducted by ENERCA management staff. The bulk of the traininginvolves retraining seminars outside the country and student training coursesat ESIE of Abidjan. These actions are financed under the ''ENERCAInstitutional Support Component'' financed by the World Bank. . A staff trainingprogrnmme was prepared in 1989 by a consulting firm. This plan, alreadyreported by the appraisal mission, could thus be updated and implemented.

6,4 Accountinq and Auditinq

6.4.1 Accounts management is one of ENERCA'S weak points. Contrary to theobservations made in the appraisal report, there are no accounting andfinancial procedures at ENERCA and the accounting computer software does notmeet requirements. Moreover, cost accounting has never been introduced.

6.4.2 The rehabilitation of the accounts function has just been completeddue to World Bank financing. To this end a management contract for theFinancial Directorate was awarded on the 11 June, 1994 to a firm ofaccountants for a period of one year renewable. This firm provides thefinancial director and carries out monthly missions. It is responsible for:i) the establishment of .administrative and accounting prbcedures; ii) theintroduction of cost accounting; iii) the evaluation of existing acgountsstaff and the search for additional staff including a Central African Republiçmanager capable of assuming, in time, the functions of Financial Director.

6.4.3 The Supervisory Committee appoints an external auditor for athree-year term from among the UDEAC registered auditors or chartered accountunits to audit the company's procedures and accounts. At the time ofappraisal, the company had two external auditors appointed by decree of theMinistry of Finance for a z-year period. Since 1991, ENERCA'S accounts havebeen audited annually by an external firm on World Bank financing. However,the enterprise's accounts have never been audited by the auditors and externalauditors. In fact, recommendations are made by the auditors on the exactvaluation of the company's property, the rèliability of the e'customer''portfolio and the exact level of reserves to be constituted by ENERCA. One ofthe tasks of the Financial Directorate management consultants will be to applyprevious recommendations in order to permit auditing of the companyes accountsfor 1994.

6.5 Tariffinq

6.5.1 Electricity tariffs were readjusted on 6 February, 1989. The majorfeature of this readjustment, which was sùggested by the Bank's appraipalmission, is that not only does it result in an increase per Kwh in the' secondand third bands but it also reverses the structure of the tariff. Originallya tapering tariff, a real consumption bonus, it becomes an inverted tariffwhich penalizes excessive consumption. This tariff structure is in keepingwith the current electricity output situation.

6.5.2 There have been two 15% increases in ENERCA 'S tariffs in 1989 and1994 respectively. Thus, the average tariff applied for energy distributed inBangui rose from CFA.F 40 in 1988 to CFA.F 72 in 1994, ioe. around 13 U.S.cents, which ié fairly high in comparison with the qverage rates in otherAfrican countries. The tariff for thermally generated electricity distributedin secondary centres (excluding Bangui and Boali) rose from CFA.F 105 toCFA.F 161 over the same period. '

- 2 3

6.5.3 Despite the last tariff increase applied in May, 1994, currentelectricity tariffs cannot provide ENERCA with a profitable operation. Infact, the average Kwh production cost for Bangui stands at around CFA.F l00for an average tariff of CFA.F 72/Kwh. In the secondary centres, the cost ofproduction of one thermal Kwh is estimated at CFA.F l70/Kwh compared with acurrent tariff of CFA.F l6l/Kwh. Moreover, the change in the parity of thecFA franc which occurred in January, 1994 had adverse effect on ENERCA'Sfinancial balance (operating budget, debt service, commercial liabilitiqs).The tariff study: financed by the World Bank, will make it possible todetermine an appropriate tariff level. The terms of reference of this studyare under preparation and start-up 'is scheduled for early 1995.

6.6 Billinc and Collection

6.6.1 ENERCA currently supplies electricity to 10,000 customers comparedwith 8,120 in 1988, i.e. an increase of 23%. This increase in the number ofsubscribers is one of the consequences of the improvement in Yhe enterprise'scommercial function with: i) customer inventory and assessment campaigns; ii)the establishment from 1990 of a computer line for the management of customeraccounts and billing whereas this type of proceseing was previously handled bythe National Computer Board; and iii) a new connection policy featuring areduction in connection costs and the spreading of connection estimates over

. 20 months. A ',2000 customers by December 1994'' operation was launched but washampered by a shortage of connection materials at the ENERCA level. About athousand connection applications are currently pending.

6.6.2 Billing has been monthly since May 1994 for all customers whereas itwas bi-monthly for low voltage customers. For LV, it is done by a team of 7meter readers. For MV# a special untt was established in August 1993 tomanage 85 customers which represented 50% of ENERCA'S billing. Thecomputerization of customer management has made it possible to eliminatebilling delays which had reaehed four (4) months. The current billing rate isabout 80%.

6.6.3 Since appraisal the level of arrears due to ENERCA has remainedvirtually unchanged. It amounts to CFA.F 3.l billion. However: these arrearsdo not concern the State which carried out a debt trade-off with the' companyand now settles its bills in advance. It is to be feared that a large part ofthese debts are really compromised. , The breakdown of customers by zone aswell as suspension or meter installation operations have made it possible toimprove the collection rate, which for the 4th quarter of 1994, reached 110%.Furthermore, the forthcoming introduction of prepayment meters in Bangui willhelp to improve the recovery rate.

PROJECT JUSTIFICATION

Pron'ect Output

At a technical level

7.1.1 The project concerned the construction ôf a regulating structurewhich has permitted an increase in the output of the Boali l and 2hydro-electric plants. These two plants are the backbone of Bangui'selectricity system. At the time of appraisal, the technical justifieation forthe project was based on the need to maximize the return on the productionequipment by enabling it to work at full capacity throughout the year.

7.1.2 Now, the visit to the M'bali hydro-electric scheme and an analysis ofthe technical result's of itg operation make it possible to confirm that this

i' $ i' d In fact, the regulation of theobjective has effective # een ach eve .M 'bali river course due to the construction of the dam combined with rigorous

- 24

reservoir management during the dry season, in coordination with the operationof the Boali l and 2 plants, has made it possible to substantially increasethe proportion of hydro-generated electric power in the total output of theBangui electricity system. This proportion was 99.1+ in 1993 compared with amaximum of 871 prior to 1991 when the dam was commissioned.

7 l 3 Furthermore, as pointed ou't in sub-chapters 4.3, 4.4 and 4.5, the

project had, on the whole, a positive environmental impact. Thus, despite a3reservoir surface area estimated at 40 km , the project required relatively

little deforestation. Reafforestation was carried out in such a way as toform around the lake, with the primary forest, a belt to ensure erosioncontrol of the slopes. Finally, the construction of improved homes. for therehoused population, the establishment of a health centre and the sinking ofpump-equipped drinking water wells, have made it possible to effectivelyreduce the health risks which could arise as a result of the dam.

At the financial level

7.1.4 The financial objectives of the M'bali dam construction project havenot been achieved. In fact, although the level of hydro-generated output hasincreased as a result of the implementation of the project, the demand forenergy in 1993 was virtually the same as in 1991, i.e. Gwh 85. This situationis primarily. due to the fact that since investments relating to the Banguinetwork were not completed within the deadlines, the loss rates were extremelyhigh attaining 36% in 1993. In addition, the national sociai and economicsituation, marked by a serious recession and social unrest, was in no wayconducive to the success of the project. Overall, ENERCA'S financialsituation has deteriorated due, on the one hand to the low level of its salesand on the other, its excessively low tariffing which prevents profitableoperation. However, despite ihat, the project financial rate of return issatisfactory.

At the social and economic level

7.1.5 At the social and economic level, the project achieved most of itstargets. Firstly the increase in output of hydro-generated electricity madeit possible to substantially reduce ENERCA'S oil bill which fell from anaverage annual level of CFA.F 1,550 million prior to project implementation toCFA.F 55 million in 1993 i.e. a saving of CFA.F 1,500 million per yearcompared with the estimates at appraisal of CFA.F 1,200 million. In addition,the number of ENERCA'S customers rose from 8,000 in 1988 to 10,000 in 1994i.e. a 25% increase.

7.1.6 At the social level, the construction. of thé dam helped to improvethe living conditions of the population in the projpct area by increasingtheir financial revenues, the construction of a health centre and thereduction of water-borne diseases with the drilling of boreholes. Inaddition, the construction of new houses in the resettlement area improved thehousing conditions of the population. However, the delay in implementingcertain actions planned under the project environment sub-component(deforestation) may, in time, create problems of pollution. The projecteconomic rate of return was estimated by the completion mission at 27.7*.

Least-cost solution

The alternative to the M'bali dam construction project was thedevelopment of thermally-generated output. A comparison between theproduction cost of a hydro-power generated Kwh (CFA.F 100) and a thermalgenerated Kwh (CFA.F 170) shows that the construction of the dam is by far theleast cost solution. In addition, this project is a perfect example of '''apolitical will to enhance the country's natural resources.

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PERFORMANCES OF THE - BANK AND BORROWER

8.l Overall and Specific Performance

The Bank

8.1.1 Overall, the Bank's contribution to t%e achievement of the projectwas almost exclusively limited to monitoring activities which could have beencarried out from the Headquarters in Abidjan. These principally concerned areview of the technical files as well as all types of requests addressed tothe Bank by the Borrower or the executing agency. '

8.1.2 In view of the project's financial results, which are well belowforecast, it would appear the Bank's performances at appraisal are fairlymixed. In fact, the Bank could have imposed conditions to ensure that therewpuld be no delay in the start-up of certain programme components which nowreduces the impact of the dam construction. Furthermpre, the financialanalysis conducted at the time of the project appraisal is very questionable.Firstly, assumptions used in the calculation of the rate of return do notappear in the report. It also seems that the profits attributed to theproject were not evaluated only on the basis of additional energy output. Inview of these elements, the project rate of return was overestimated at thetime of appraisal. In addition, the absence of monitoring/supervisionmissions made it impossible ' to monitor the fulfilment of other conditionswhich had deadlines (see Annex l5) and which guaranteed the financialviability of the company.

The Borrower

8.1.3 For its part, the Borrower has, on the whole, complied with itscommitments to the Bank. Throughout the implementation of the project, theBorrower ensured that the Bank was regularly informed of the project statusb0th at a physical and financial level, through the quarterly reports of theEngineering consultant.

8.2 Supervision

Unfortunately only one supervision mission was carried out oncompletion of the dam works. The reqsons for this shortcoming could not beclearly identified. This shortcoming should be underlined even if it has hadno negative impact on the implementation of the project due, on the one hand,to the competence and commendable performances of the engineering consultantand enterprises and on the other, regular World Bank supervision missions. Itshould be noted that the latter institution carried out three projectsupervision missions per year, throughout the implementation of the project.

8.3 Workinc Relations

The working relations between the Bank, Borrower and the ExecqtingAgency were good. At an administrative level each partner played his role andexchanges of information, comments and suggestions on the different aspects ofproject implementation were, on the whole, regular and steady. This made itpossible to resolve the problems which arose and which related to the rapideffectiveness of the loan as well as consideration and payment of disbursementapplications within reasonable deadlines.

- 2 6 -

CONCLUSIONS

9.l Results

9.1.1 The M'bali dam construction project with its related sub-componentsconcerning the environment, was implemented under the best technical andfinancial conditions. At a technical level, the woris implementationdeadlines were complied with and the structures completed comply in every waywith the technical specification. In addition, the executing agencyestablished the necessary line and technical structures to ensure soundmanagement of the dam and the monitoring of its behaviour. However: theanticipated performances and yields were not fully attained due to the delayin the rehabilitation work öf the Bangui network.

9.1.2 With regard to the financial results the anticipated revenues werenot achieved but the internal rate of return remains satisfactory in view ofthe average weighted cost of capital. From an economic standpoint, theproject more than attained its targets. It remains the least-costs solutioh.Its implementation has made it possible to develop the country's waterresources while reducing its energy dependency and encouraging access toelectricity by a larger section of the population of the Central AfricanRepublic.

9.1.3 All the different project cycle phases, from the feasibility studiestill the commissioning of the structures were implemented in accordance withthe estimated schedules within the limits of the estimated financial packagesand by a team of engineering consultants and enterprises who demonstratedoutstanding competence and professional rigour. From this standpoint, theconstruction of the M'bali hydro-electric dam may, in conclusion, beconsidered a total success. This success deserves to be underlined all themore since, in this case, it involved the completion of a functional set of50th diverse and complex structures, requiring the use of the greatest skillsin such varied fields as geology, geophysics, hydrology, topography, civilworks, mechanics, electricity and the environment.

9.2 Lessons to be Drawn from the Proiect and Recommendations

Lessons

9.2.1 The implementation of the project could have been adversely affectedby the Bank's complete lack of supervision. It is necessary to return to thisweakness which often constitutes the principal reason for the deficienciesencountered in the implementation of projects. In the present case, theproject has benefited b0th from regular monitoring by the World Bank, and theperiodic missions of its Committee of expe/ts who ensured the timelyresolution 6f all the specific technical problems and difficulties encounteredduring works implementation. However, in view of the fact that the speciàlconditions required by the Bank were limited to the presentation by theBorrower of written undertakings, supervision missions would have made itpossible to monitor the effective implementation of these Governmentco%mitments, particularly with regard to tariff increases and the recovery ofarrears.

9.2.2 Another lesson concerns the authorization granted by ADF for theearly issue of invitations to bid. This authorization ensured the submissionof bids well before the appraisal of the project which was thus conducted onthe basis of the prices of the financial proposal of the provisionalsuccessful bidder for the dam works. In view of the nature of the project andthe complexity of the contract award procedure, ADF, by this action, made avery significant contribution towards ensuring increased hydro-electric pùWé.:generation at the planned time, thus avoiding serious shortages which

27

ld have arisen from a delay in the implementation of the project. In fact, ''éV%d.cou. . :)

without the early competitive bidding, the dam could only have been btought on :. .. . . . ...L;s

stream, under normal working conditions, 12 months later which would haveincreased ENERCA'S oil bill due to increased thermal output and worsened itsalready serious financial situation.

9.2.3 The final lesson to be drawn from the implementation of this firstenergy project concerns the approach adopted during its appraisal by 'theBank. In fact, as pointed out in para. 2.4.1, the project considered and asdefined in the appraisal report, is not yet completed. A project completionreport should not, therefore, have been prepared prior to the total comple6ionof the on-going component. The physical, and even functional ipdependence of

i 'ldame component as inthe project componen enabled the Bank to consider theindependent project aùd.appraise it as such. However, since its financial andeconomic viability were related to the implementation of three othercomponents, conditions concerning their financing should have been imposed.

Recommendations

9.2.4 The recommendations primarily concern the' lessons drawn from theproject. The first concerns the appraisal of the project on the basis ofprices obtained following the early competitive bidding. The project'ssuccess following those of the NANGBETO (Benin/Togo), KYAMBERE (K@nya) andRWyGURA (Burundi) hydro-electric schemes shows that this approach hasgenerally produced excellent results with regard to the physical apd financialimplementation of projects. It is thus recommended that in its on-going questfor project quality, the Bank systematically adopt it in the process ofscheduling major infrastructure projects; in other words, that projectappraisal missions only be programmed following the issue of invitations tobid and the publication of the results.

9.2.5 The consolidation of the project achievements and the attainment ofthe objectives defined at appraisal requires the adoption of several measureswhich could ensure the financial and economic viability of ENERCA and howguarantee the sustainability of the structures and the rppayment of loanscontracted for the implementation of the project. These meàsures focus on: i)the financial restructuring of ENERCA; ii) the readjustment of electricitytariffs; iii) the implementation of network rehabilitation and extensioninvestments; and iv) a reduction in the cost of customer connections to thenetwork. Also, since the study on financial equilibrium should start-upduring the first quarter of 1995, the Bank should approach the Central AfricanRepublic authorities to be kept informed of its conclusions and thus envisageits participation in any possible financing required.

1258r

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. . , .i

>2jANNEX 5 .,'%z ' l ' ' i

CAR: N'BALI DAM

OPERATING STATISTICS

DESCRIPTION 1986 1987 1988 1989 1990 1991 1992 1993

Billed energy (GWH) 71.84 66.14 57.25 60.07 64.33 55.28 61.59 69.98Average price p!r KWH 35.12 38.54 44.77 52.77 52.36 51.54 51.16 50.67Annual varlat. ln the average price 9..74 16.16 17.88 -0.79 -1.56 -9.73 -0.95Annual billing variation -7.93 -13.44 4.93 7.09 -14.07 11.41

Bllled energy (msllions of CFA.F) 2523 2549 2563 3170 3368 2849 3151 3090Hork bslled , 776Cqllectlon (millions of CFA.F) 2633 3161 4151 2741 2464 3671(lncl. wqrks ! prev. fiqanq. yrs) 'Outstandlng bllls at the f7nan. ,r.) 4052 3768 3620(H$11. cf CFA-F) of whlch works end 85.12 123.54 122.86

Installed capacsty (HH) 31.87 31.87 30.49 30.49 36.89 36.89 36.89 36.89

Gross output (G9H) 88.82 90.95 85.31 92.09 99.38 92.12 99.93 93.64

Thermal (GHH) 11.51 17.05 - 16.86 11.94 26.3 26.3 1.7) 0.84% of total output 12.96 18..75 19.76 12.97 26.46 28.55 1.71 0.90

Hydre (GHH) 17.31 73.9 68.45 80.15 73.08 65.82 98.22 92.8% of total output 87.04 81.25 80.24 87.03 73.54 71.45 98.29 99.10

Domestic consumption (GHH) 0.82 0.88 . 9.86 . 9.81 1.46 1.48 1.18 1.07% cf gross output generated 0.92 0.97 1.01 0.88 1.47 1.61 1.18 1.14

Net output (GWH) 88 99.0) 84.85 91.28 97.92 90.64 98.75 92.57

Energy supplied for dsstrib. (GHH) 80.8 82.49 79.64 85.9 92.55 85.18 80.54 85.14% of net cutput 91.82 91.58 94.30 94.11 94.52 93.98 91.69 91.97

Losi of enirgy from the transmissionnetwork (GWH) 7.2 7.58 4.81 5.38 5.37 5.46 8.21 7.43% of net output ' 8.18 8/42 5.70 5.89 5.48 6.02 8.3) 8.03Losé of energy from the distribu-tion network (GHH) 8.96 16.35 22.39 25.83 28.22 29.9 28.95 24.16% of energy supplied for distrib. 11.09 19.82 28.11 30.07 30.49 35.10 31.97 28.38Peak output (MH) 15.05 15.95 16.7 17.2 17.35 16.6 18.6 17.45

h'Aft in peak (%) 5.98 4.70 2.99 0.87 -4.32 12.05 -6.18Annual sLoad factor (%) 67.37 65.99 58.31 61.12 65.39 63.35 61.33 61.26

Eonsumption ot diesel (tbousandsof litresAnnual varsation (%)

Consumptson of diesel (millionsof CFA.F)

Staffsng- Hanagement- Supervisory- tsne

Hage Bi11 (Hillions cf CFA.F)- Mages- Training- Socsal contrsbutions- Wage costs

Number of delivery points- >- (v- LV over CV- Secondary centresNo.hof customers per employee

3392 4959. 4873 3628 7088 6811 520 241.5346.20 -1.73 -25.55 95.37 -3.91 -92.37 -53.55

969

56144144373

564.81 578.8 597.01 598.25 631.66 742:71 849.88 1033547.24 561.0

.6 589.97 583.69 519.71 615 707.17 85210.23 7.02 4.1 2.76 11.67 8.27 10.08 28.397.34 10.72 11.94 11.8 11.75 13.69 10.96 11.13

88.53 196.75 121.67 141.44

1261 1178

5di 55744 49144 143375 365

854

54037154349

1584 1532 81.79 54344

50944136329

60257226219

47756211210

42777177173

8080 6099 6491 781552 83 83 83

8028 5926 6498 7732

7863 834383 83

7780 8260

750983

7426

970587

841747

11542314 12 14 17 16

ENERCA - General Studies.

1308r

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ANNEX' 7

CENTRAL AFRICAN REPUBLICCOMPLETION REPORT

ON THE M'BALI HYDXO-ELECTRIC DAM PROJECT

COMPARATIVE COSYS TABLE

cost at Appraisal(in thousands of UA)

Component

A . DamB. Feeder roadsC. Rehousing of populationD. DeforestatipnE. Rehabilitation of 60 KV lineF. Constr. of Boali 2 and Boali inter-

section lineG. Assistance to M'Bali l missionH. Inspection and supervieion

Total

F.E .

19,2411,62523558l698

1l7463

1.46024,420= = = = = =

L .c

3,3952:741l02l23

2282

2584,310= = = = =

Total

22,6361,91227668382l

139545

1.71828,730= = = = = =

Actual Proiect Cost(in thousands of UA)*

Component

A. Dam and feeder 'roadB. RNl diversionC. Rehousing of populationD. DeforestationE. Rehabilitation of 60 KV lineF. Constr. of Boali 2 and Boali inter-

section lineG. Assistance to M'bali missionH. Inspection and supervision

Total

7 , 2 8 6l , 42 l

375757

l10257

1,91612,122= = = = = =

14:8782,420

711,1271,289

l8745

33820 355= = = = = =

22,1643,841

711,5022,046

297302

2.25432,477= = = = = =

Exchange rate as at 30 September, 1990UA 1 = US$ 1.38631US$ l = CFA 291.65

1308r

.. N

q:. ' peYx $

AN N E X 8 .. ., .sj. .' ''J .,.; .*

e ' : , *.

CENTRAL AFRICAN REPUBLICCOHPLETION REPORT

QN THE M'BALI HYDRO-ELECTRIC DAH PROJECT

Cnmnarative Statement Qf EiERCA'S Operatinc Accounts

Operating revenueoperating costsGross operatlng profitNon-cperating prcfltSurplusNet profit before taxTaxation prnfstNet prcfitkorklng ratio (%)Operatsng ratio (%)Financsal charges/reven.

1989 1990 1991 1992 1993Appraisal Actual E22/. Acfual Apmrx Actual &zpm. Actual Apmr. Actual

;

4,226 3,680 5,000 3,909 5,327 3,831 6,104 3,775 6,398 3,8644,078 3,164 4,754 4,010 4.103 4,223 4,506 3,688 5,070 4,732+148 +516 246 -101 +1.224 -392 1,598 87 1,328 -868

+442 +38 - -934 - -1,287 - -1,6661 6 - 7 27

+148 959 246 -62 +1,224 -1,320 1,598 -1,199 1,328 -2,50749 49 58 43 61 41 70 33 74 3899 919 188 -105 +1,163 -1,361 +1,528 -1,232 +1,254 -2,54557 71 57 84 32 91 30 73 30 9297 86 96 102 78 110 75 98 80 122

3% 2% 8% 20Z 2)Z

1308r

ANNEX 9

CENTRAL AFRICAN REPUBLICCOHPLETIO. REPORT

ON TïE H'BALI 8YDRO-ELECTRIC DAM PROJECT

Summary of ENERCA'S Balance Sheets

ASSETS

Net flxed assetsOperatlng assetsQulck Asset

Total

LIABILITIES

Equlty capltalLMTDSTD

Total

Horklng capltal

Flnanclal autonomyLong-term debtLlquldlty rate (CA/STD)Return on flxed assetCustomer credlt

1989 1990 1991 1992 1993

12,205 19,670 20.329 19,573 19,885500 416 427 441 315

3.640 2.712 3.032 5.249 4.04516,345 22,798 23,788 25,263 24,545

2,570 2,590 536 1,2518,221 16,341 18,236 18.6995.554 3,-867 5.016 5.31316,345 22,798 23.788 25,263

- 1,414 , +1,851 -1,557 377

0.183.190.7571393 d

- 13119.3155.06124,545

- 701

0.01

0.86

459 d

0.136.300.810.75%373 d

0.02 0.0534.02 14.90.69 1.07

421 d 452 d

1308r

'N@

'Dzkx . .. '%P.

ANNEX 10

CENTRAL AFRICAN REPUBLICCOMPLETION REPORT

OF THE M 'BALI HYDROrELECTRIC DAM PROJECT

Assumptions of Financial Proiections

A. FINANCIAL RATE OF RETURN

Currencv :

Investments:

The analysis was conducted using constant CFA francs.

These are actually incurred investment expenditure.

Economic Life:

Maintenance Costs:

An economic life of 25 years was estimated, with. aresidual value representing 50* of the civil works.

They :re estimated at 1.5* of the amount of theinvestment.

From 1989 io 1993, the average electricity tariffwas CFA.F 52/Kwh. As from 1994, this average tariffincreased to CFA.F (72/Kwh). This tariff is assumedto be constant till 1996, when an increase of 30%will be applied (application of the results of thetariff studylk

In order not to panalize the project, additionalhydro-electric output was considered on the basis ofthe means of generation of the last five years(72.286 Kwh).

Tariff:

Output:

B. EC-ONOMIC M- TE OF RETURN-

Tarif f : The economic price of the Kwh considered is the costof a Kwh generated from the thermal power plant(other alternative) i.e. CFA.F l70/Kwh.

ESTIMATED OPERANING AccouNTs

REVENUES

1. Estimate sales of energy are those established by ENERCA on thebasis of demand forecasts.. The rate of overall losses will fallfrom 27* in 1994 to 20* from 1995 due to the on-going network

l ievel.rehabilitation work and the measures adopted at a commercia

2. The average Kwh tariff, çurrently CFA.F 72, will be increased by3Q& from 1996, following the findings of the tariff study. h 15%increase has already been accepted.

The other product be estimated at l0+ of energy sales (pastaverage rate).

Costs

Operating costs have been determined until 1996 on the basis of the 1994draft budget prppared by the ENERCA studies service. From 1996, we havemade an extrapolation in the basis of energy sales.

1308r

Y, r e

.pR

E ANNEX 11

CENTRAL AFPICAN REPUBLICCOHPLETION REPORT

0N T8E M'BALI FYDRO-ELECTRIC DAM PROJECT

FIRR Calculatlon Table(ln mllllons of CFA.F)

Malntenance RevenuesInvestment

( 1 949 )(6723)( 1 5 1 7 )(962)( 149)(759)

341 5

FIRR = 0.1354

1348106718661866242524252901290129012991290129012901290129012901290129012901290129012901

Beneflts

(1949)(6723)(1648)2457659541713227222722272227222722272227222722272227222722272227222722272227222725687

1308r

ANN.EX 1 2

CENTRAL AFRICAN'REPUBLICCOHPLETION REPORT

0N T8E M'BALI HYDRO-ELECTRIC DAM FROJECT

Calculatlon of the EIRR(ln mllllöhs of CFA.F)

Ma$ ntenanceInvestment

(1949)(6723)(1517)(962)(149)(759)

Revenues

341 5

131141153153153153153153153.. y jg1 531 531 S 31 531 531 531 53.1 531 571 5 3'153153

EIFR

440334854403440344034403440344034403440344034403440344034403440344034403440344034403

0.2772

Beneflts: . .

(1949)(6723)(1648)330031833291425042504250425042504250425042504250425042504250425042504250425042507665

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ANNEX 1 4 . -'''? 20 0 1 0f 2' 7k1 7. : jj'W

CENTRAL AFRICAN REFUBLICCOMFLETION REPORT

Q: T8E H'BALI CYDRO-ELECTRIC DAM PROJECT

Status of Implementatlon of the other Componentsof the flrst Enerqv Pro.qect

Rehabllltatlon of the Bancul Network

The Implementatlon of the prolect began ln Harch 1993 and thecompletlon of the work ls planned for February 1995. Atpresent. the lmplemenfatlon schedule appears to be complledw1th. There ls a substantlal delay of about 12 months ln theprolect slnce at the tlme of the May 1991 monltorlng mlsslon,works start-up was planned for the 1st quarter of 1992.

11) The contract was slgned on 26 February, 1993 w1th SPIE ENERTRANSand the flnanclng was ensured by the E1B (European InvestmentBank). The prolect cost was CFA.F 1,298,358,200 prlor to thedevaluatlon of the CFA franc. The revlsed amount afterdevaluatlon ls around CFA.F 2,505,000,000. '

The consultlng englneer responslble for works lnspection andsupervlslon ls the Canaulan flrm TECSULT flnanced by CIDA for anamount of 829,000 Canatlan dollars. Thls flrm had also prepared,by means of an ADF loan of UA 320,000, a11 the feaslbllitystudles and detalled sketches.

Rehabllltatlon of the Boall 1 and 2 Power Plants

1) These Works were lmplemented on a CFD flnanclng for a totalamount of FF 24.40 mllllon, l.e. CFA.F 1,200 mllllon. Therehabllltatlon of Boall 1 has been completed slnce 1989 and thatof Boall 2 slnce 0ctobe(,

'1991.

At Boall 1. the rehabllltatlon only concerned electrlcallnstallatlons. A second rehabllltatlon phase appears necessaryand wl11 concern hydraullc englneerlng equlpment. Thenegotlatlons are underway wlth IDA to determine who shall bearthe costs of thls phase.

Bancul Thermal Power Plant

The Bangul Thermal Poker Plant has just recelved a new 6.4 HH unltcommlssloned ln Harch, 1990. , Thls diesel generator was flnanced by CFDfor a total amount of CFA.F 1,650 mllllon lncludlng the prolectmanagement.

1308r

ANFEX 1 4 * 7'. 1*' . '...''

Page 2 of 2 'n'.4

4. Instltutlon Bulldlng

Thls component prlnclpally comprlses:

The Generatlon and Transmlsqlon Master Plan: thls study for a totalcost of CFA.F 105,532,650 (/F 2,110,653) was full/ completed ln May,1992. It was flnanced by the IDA loan and lmplemented by theqnglneer consultant SOGREAH-ELECTROHATT;

The tarlff study: lt ls expected to be flnanced by IDA &nd the TORSare belng prepared;

5.

)'

: !

Tralnlng scholarshlps to ESIE: thls component ls also flnanced lnan 1DA loan. At present, flve (5) students are belng tralned atESIE Slnce the 1993/1994 academlc yeart

Technlcal Asslstance: the bulk of It Is lntended for the FinanclalDlrectorate and ls flnanced by the IDA loan. The total amount IsCFA.F 19 ,2 00 m0 000. The rélated sirvltes are stlll ln progress andare provlded by ARTHUR ANDERSON.

011 Prosnectlon

Also flnanced by the IDA loan, thls component begAn ln 1990 w1th thework on o11 leglslatlon, the technlcal shortage of the sesslonal llnesthe preparatlon of promotlonal document and tralnlng geology and o1itechnlques. The prolect ls stlll belng lmplemented and the totalflnanclal packpge ls SDR 2,150,000 I.e. CFA 874,333,330.

x '. '' # *

Fj' iA '#'X*l. .

1 S ' I'V'ANNEX 4. .. .!4P ag e l O f 2 ' . ' . '.ç'' 42

. . kj'*.u4'ck :2 k.v,;-'

CENTRKL AFRICAN REPUBLICCOMPLETION REPORT

OF THE M 'BALI HYDRO-ELECTRIC DAM PROJECT

A .

ADF LOAN CONDITIONS

Conditions Precedent to the First Disbursement

The Borrower shall:.

undertake to regularly allocate his annual budget the necessaryamount to finance his share of the project cost in acco/dancewith the financing plan;

ii) undertake to find additional sources of financing in the event ofany overrun on the actual project cost;

iii) undertake not to use the proceeds of the loan for the payment ofduties and taxes related to the goods and services required toimplement the project;

undertake to provide ADè for prior approval with the performancecontract to be signed between the dovernment and ENERCA (para.4.6.3);

undertake to approve an electricity tariff increase of at least15% in 1990 and permit ENERCA to revise its tariffs annually toensure that the return on its revalued fixed asset is at leastequal to 8% per annum.as from 1991;

vi) on-lend the loan to ENERCA on terms acceptable to ADF. The drafton-lending agreement shall be submitted to ADF for prior approval;

vii) provide ADF with evidence that the financing agreement with theother donors concerned by the ADF financed component (IBRD, KF,CCCE and FAC); have been signed or that the latter haveundertaken in writihg to take part in the financig of the saidcomponent;

viii) provide ADF with a progrnmme of peasures aimed at recoveringarrears due to ENERCA; and

ix) provide evidence of the modification of the existing tariffstructure in order to obtain progressive tariffing (para. 4.5.3and 5.1.5)..

Other conditions

The Borrower shall, moreover, communicate to ADF:

The tariff study planned under the institutional strengthening;

B .

ANNEX 15Page 2 of 2

ii) The ENERCA audit and project account report no later thanmonths after the end of the financial year end (para. 4.4.2)7

iii) The performance contract between the Borrower and ENERCA no laterthan 31 December, 1989 (para. 4.6.3):

iv) The measures taken to improve thewhich should not in any case exceedDecember: 1989 (para. 5.3.4);

level of the operating ratio50% per year no later than 31

v) A plan concerning environmentalpersons displaced because ofDecember, 1989 (para. 6.4.6).

preservation and the rehousing ofthe project no later than 31

six

AN.NEX 1 6

CENTRAL AFRICAN REPUBLICCOMPLETION REPORT

'QN THE M'BALI FYDRO-ELECTRIC DA8 PROJECT

Estlmated Operatlnn Accounts(ln mlllsbns of CFA.F)I

100.0 110.0 118.0 135.0 150.0 166.020ï 20Z 20*i 20ï 20% 2î*L80 88 94 108 12O 13272 94 94 94 94 94

5760 8272 8836 10152 11280 12408576 827 883 1015 1128 12405336 9099 9719 11167 12408 136484463 5060 5332 6200 7040 7780+1873 +4039 +4387 ' +4967 +5368 +5868

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