Report and Recommendation of the President to the Board of Directors

Project Number: 49177-002 October 2021

Proposed Loan and Technical Assistance Grant Democratic Republic of Timor-Leste: Power Distribution Modernization Project Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB’s Access to the Information Policy.

CURRENCY EQUIVALENTS (as of 5 August 2021)

The currency of Timor-Leste is United States dollar.

ABBREVIATIONS ADB – Asian Development Bank CAFI

COVID-19

–

–

Conselho Administrativo do Fundo Infraestrutura (Council for Administration of the Infrastructure Fund) coronavirus disease

DAS – distribution automation system DMIS – distribution management information system EDTL – Electricidade de Timor-Leste MPW – Ministry of Public Works NPC

O&M – –

National Procurement Commission operation and maintenance

PAM – project administration manual PMU

PSC – –

project management unit project supervision consultant

SOE – state-owned enterprise TA – technical assistance

MEASURES

cct-km – circuit kilometer kV – kilovolt MW – megawatt

NOTE

In this report, “$” refers to United States dollars.

Vice-President Ahmed M. Saeed, Operations 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Deputy Director General Winfried Wicklein, SERD Directors Toru Kubo, Energy Division (SEEN), SERD

Sunil Mitra, Timor-Leste Resident Mission (TLRM), SERD Team leader Daniel Miller, Senior Finance Specialist, SEEN, SERD Team members Syarifah Aman-Wooster, Principal Social Development Specialist

(Safeguards), SEEN, SERD Bayarmaa Amarjargal, Young Professional, Knowledge Advisory

Services Center, Sustainable Development and Climate Change Department (SDCC)

Bernadett Avance, Operations Assistant, SEEN, SERD Stephane Bessadi, Senior Procurement Specialist, Procurement Division

2, Procurement, Portfolio and Financial Management Department Elizabeth Burges-Sims, Senior Social Development Specialist (Gender

and Development), Human and Social Development Division, SERD Elsty Davidz-Morato, Social Development Officer (Gender), TLRM,

SERD Choon Sik Jung, Principal Energy Specialist, Energy Division, South Asia

Department Genevieve O’Farrell, Senior Environment Specialist (Safeguards),

SEEN, SERD Roshan Ouseph, Senior Counsel, Office of the General Counsel Jose Perreira, Senior Project Officer, TLRM, SERD

Geraldine Grace Reside, Project Analyst, SEEN, SERD Maria Aloha Samoza, Senior Project Officer, SEEN, SERD

Peer reviewer Kee-Yung Nam, Principal Energy Economist, Energy Sector Group, SDCC

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

PROJECT AT A GLANCE

MAP

I. THE PROPOSAL 1

II. THE PROJECT 1

A. Rationale 1 B. Project Description 4 C. Value Added by ADB 5 D. Summary Cost Estimates and Financing Plan 5 E. Implementation Arrangements 6

III. ATTACHED TECHNICAL ASSISTANCE 7

IV. DUE DILIGENCE 8

A. Technical 8 B. Economic and Financial Viability 8 C. Sustainability 9 D. Governance 9 E. Poverty, Social, and Gender 9 F. Safeguards 10 G. Summary of Risk Assessment and Risk Management Plan 11

V. ASSURANCES 11

VI. RECOMMENDATION 12

1. Design and Monitoring Framework 13

2. List of Linked Documents 16

Project Classification Information Status: Complete

PROJECT AT A GLANCE

Source: Asian Development BankThis document must only be generated in eOps. 05082021083616999262 Generated Date: 05-Aug-2021 8:46:19 AM

1. Basic Data Project Number: 49177-002Project Name Power Distribution Modernization Project

(formerly Electricity System Strengthening and Sustainability Project)

Department/Division SERD/SEEN

Country Timor-Leste, The Democratic Republic of Executing Agency Council for Administrationof the Infrastructure Fund(also Conselho Administrativo do Fundo Infraestrutura)

Borrower Timor-Leste, The Democratic Republic of

Country Economic Indicators

https://www.adb.org/Documents/LinkedDocs/?id=49177-002-CEI

Portfolio at a Glance https://www.adb.org/Documents/LinkedDocs/?id=49177-002-PortAtaGlance

2. Sector Subsector(s) ADB Financing ($ million)Energy Electricity transmission and distribution 35.00

Total 35.00

3. Operational Priorities Climate Change InformationAccelerating progress in gender equality

Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainabilityMaking cities more livable

Promoting rural development and food security

Strengthening governance and institutional capacity

GHG reductions (tons per annum) 28,769.000Climate Change impact on the Project

Medium

ADB Financing

Adaptation ($ million) 1.10

Mitigation ($ million) 30.80

Cofinancing

Adaptation ($ million) 0.00

Mitigation ($ million) 0.00

Sustainable Development Goals Gender Equity and MainstreamingSDG 5.4, 5.5, 5.bSDG 7.1SDG 13.a

Effective gender mainstreaming (EGM)

Poverty TargetingGeographic Targeting

4. Risk Categorization: Low.

5. Safeguard Categorization Environment: B Involuntary Resettlement: C Indigenous Peoples: C

.

6. Financing

Modality and Sources Amount ($ million)

ADB 35.00

Sovereign Project (Regular Loan): Ordinary capital resources 35.00

Cofinancing 0.00

None 0.00

Counterpart 15.00

Government 15.00

Total 50.00

Note: An attached technical assistance will be financed on a grant basis by the Technical Assistance Special Fund (TASF-7) in the amount

of $750,000.

Currency of ADB Financing: US Dollar

S a v u S e a

S t r a i t o f W e t a r

T i m o r S e a

JacoIsland

Atauro Island

Cape

Cutcha

Cape Suai

Ossu

Beacu

Laclo

Laclubar

Remexio

Lequidoe

Laleia

Venilale

VemasseLaga

Mulia

Quelicai

Lautem

Luro

Trisulo

Lore

Jaco

Com Tutuala

Laivai

Baguia

Iliomar

Soibada

Atsabe

Zumalai

Bobonaro

Oeleu

Fatululic

Salele

BecoFohorem

Hatu-UdoBetano

Mota Ain

Batugade

TuminCitrana

Atabae

Maubara

Turiscai

Alas

Daisua

Metinaro

Maumeta-Atauro

Railacu

Tibar

Letefoho

Fatubessi

Hatu-Builico

AitutoMaubisse

Natarbora

Oesilo

Sakato

Passabe

Watulari

Laisorolai

Uatucarbau

Balibo

Lacluta

Viqueque

ManatutoBaucau

Lospalos

Same

Aileu

Ainaro

Suai

Maliana

Pante Macassar

Liquiça

Gleno

DÍLI

BOBONARO

ERMERA

AILEU

DÍLI

LIQUICA

MANUFAHI

AINARO

COVA-LIMA

VIQUEQUE

MANATUTO

BAUCAULAUTEM

OECUSSE

Proposed 20kV Interconnection Lines

20kV Electrical Power Distribution System

National Capital

Municipal Capital

Town

Municipal Boundary

International Boundary

Kilovolt

Boundaries are not necessarily authoritative.

kV

TIMOR-LESTEPOWER DISTRIBUTION MODERNIZATION PROJECT

Kilometers

0 10 20 30 5040

N

9 30’So

9 30’So

126 30'Eo

126 30'Eo

124 30'Eo

124 30'Eo

9 00’So

9 00’So

210

08

7 2

0T

IM A

BV

This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.

I. THE PROPOSAL

1. I submit for your approval the following report and recommendation on a proposed loan to the Democratic Republic of Timor-Leste for the Power Distribution Modernization Project. The report also describes proposed technical assistance (TA) for Capacity Building of Electricidade de Timor-Leste in Distribution Network Operation and Maintenance, and if the Board approves the proposed loan, I, acting under the authority delegated to me by the Board, approve the TA. 2. The project will (i) modernize the power distribution system in rural and urban areas in 12 municipalities across Timor-Leste, and (ii) provide institutional strengthening and capacity building to Electricidade de Timor-Leste (EDTL).1 The project will contribute to the sustainability, resilience, and reliability of the electricity system by (i) installing electricity metering infrastructure, (ii) rehabilitating degraded sections of the distribution network, (iii) installing a distribution automation system (DAS) and a distribution management information system (DMIS), and (iv) building institutional capacity of EDTL. The attached TA will support the implementation of the project, strengthen the corporatization process of EDTL, and provide policy and technical advice to EDTL.

II. THE PROJECT A. Rationale

3. Macroeconomic context—declining economic output. Developing a sustainable economy not heavily dependent on petroleum remains a key challenge for Timor-Leste.2 The economy contracted by 7.9% in 2020, due to the state-of-emergency measures to contain the COVID-19 pandemic and the 8-month delay in approval of the state budget. This is Timor-Leste’s third annual contraction since 2017—to its lowest point since 2009, after a modest expansion of 1.8% in 2019.3 Growth is expected to return at 3.4% in 2021 with the government’s ambitious set of economic policy measures to mitigate the impacts of the coronavirus disease (COVID-19) pandemic.4 4. Energy as a driver of inclusive economic growth and poverty reduction. If the country is to diversify its revenue base beyond oil, continued investment in electricity system is crucial to support the growth of industry, trade, and tourism, as well as rural and urban social development. To make electricity supply more reliable, the government aims to update and improve the electricity distribution system. 5. High cost of electricity burdening fiscal resources. EDTL, a state-owned electric utility, has primary responsibility for providing electricity to more than 200,000 households across Timor-Leste. Two power plants—the 119.5-megawatt (MW) Hera Diesel Power Plant and the 136.6 MW

1 Timor-Leste comprises 13 municipalities. The project will cover 12 (Aileu, Ainaro, Baucau, Bobonaro, Covalima, Dili,

Ermera, Lautem, Liquica, Manatuto, Manufahi, and Viqueque) but not Oecusse. 2 Timor-Leste’s economy depends heavily on oil and gas. According to the Extractive Industries Transparency Initiative

2018 Report, oil and gas provided more than 90% of the country’s revenue. 3 Asian Development Bank (ADB). 2021. Asian Development Outlook 2021: Financing a Green and Inclusive

Recovery. Manila. Before the coronavirus (COVID-19) outbreak, 2020 gross domestic product was forecast to grow by 4.9%–5.4%.

4 ADB. 2019. Asian Development Outlook 2019: Strengthening Disaster Resilience. Manila; ADB. 2020. Asian Development Outlook Supplement: June 2020. Manila; World Bank. 2019. Timor-Leste Economic Report, October 2019: Unleashing the Private Sector. Washington, DC; and World Bank. 2020. Timor-Leste Economic Report, April 2020: A Nation Under Pressure. Washington, DC; Government of Timor-Leste. 2020. Economic Recovery Plan. Dili. The economic recovery plan includes measures to increase the use of renewable, sustainable, and alternative energy.

2

Betano Diesel Power Plant—supply all of the country’s electricity.5 Even though consumer tariffs are higher than those of its regional peers, electricity supply has been a significant burden on public resources since the formation of the independent country in 1999 due to a combination of factors: (i) heavy dependence on diesel generation using expensive imported fuel, costing $68.8 million in 2019, with the 2020 diesel import bill budgeted at $109.0 million;6 (ii) high technical losses because of an aging network and outdated technology in the main load center of Dili; (iii) wasteful use of energy by residential consumers because of a lack of metering; and (iv) a low tariff collection rate for delivered electricity. 6. Poor quality of distribution. Grid electricity access increased from 21% of the population in 2003 to about 80% in 2020. However, the distribution network is in poor condition, suffering excessive voltage drops and persistent service outages. A lack of automated fault isolation and inadequate protection measures for medium-voltage distribution can cause extended blackouts across the entire network, which affect large numbers of customers and threaten public safety. 7. Power services need to be managed by an autonomous public entity. As the government subsidizes about 85% of electricity operating expenses, costing it more than $100 million annually, improving the financial sustainability of EDTL is critical.7 To reduce the fiscal burden on the government at a time when its balance sheet is under pressure to finance economic stimulus in response to COVID-19, EDTL needs to reduce generation and supply costs, improve revenue collection, and strengthen its institutional capacity.8 The government has initiated energy sector institutional reform, aiming to achieve self-sustainability and improve governance and transparency. The project supports the government’s sector reform agenda by strengthening the transition of EDTL into an autonomous state-owned enterprise (SOE).9 Project outputs and the attached TA will help EDTL develop new governance and operational arrangements and improve its financial sustainability, as well as provide policy advice to strengthen institutional reform. The support of the Asian Development Bank (ADB) is consistent with the government’s efforts to make SOEs sustainable, transparent, and accountable. 8. Relevance of the project amid a pandemic and a disaster. While the electricity distribution system always needed strengthening, such need became acute in 2020 because of the economic shocks induced by COVID-19. Moreover, in April 2021, amid the pandemic lockdown in Dili, Timor-Leste was hit by torrential rains from Tropical Cyclone Seroja, and flooding left more than 10,000 people homeless, roads impassable, and electricity blackouts widespread.10 Reliable electricity supply will be critical to support essential services such as health care, food production and supply, and the construction industry as the country rebuilds, as well as to enable work-from-home and online schooling. Modernizing the power distribution system will (i) reduce distribution losses, thereby reducing fossil fuel consumption and associated greenhouse gas emissions and pollutants; (ii) improve EDTL’s long-term financial sustainability by making revenue collection more efficient; (iii) improve the reliability and quality of electricity provision for about 200,000 customers in the country; (iv) minimize the collection and use of fuel for food preparation, thereby curtailing household drudgery; (v) enhance economic productivity to support private sector development; and (vi) contribute to developing a livable and disaster-resilient city. Access

5 Timor-Leste’s peak load was 85 MW in March 2020. 6 ADB calculations based on government data and EDTL revenue data from November 2020. ADB’s Office of Public–

Private Partnership is in advanced discussions with the government to act as a transaction advisor for a competitive tender to construct a solar photovoltaic power plant of up to 100 MW.

7 The annual budget support to EDTL represents about 6% of Timor-Leste 2020 GDP. 8 World Bank. 2020. Timor-Leste Economic Report: Towards a Sustained Recovery. Washington, DC. 9 Decree-Law No. 29/2020 established EDTL as a public legal entity, from a department under the Ministry of Public

Works. January 2021. 10 United Nations Population Fund. 2021. Timor-Leste Floods Leave Death, Destruction and Displacement in Their

Wake. News release. 9 April.

3

to appropriate and affordable energy is important for all, but differences in household responsibilities, asset ownership, and livelihood options between women and men require attention to the gender-specific dimensions of energy access. Under enabling conditions, women, particularly heads of vulnerable households, can use energy to boost their livelihoods and living standards. 9. ADB cross-sector experience and lessons learned. ADB has provided nearly $450 million in loans, grants, and TA to infrastructure development in Timor-Leste, mostly concentrated in the transport sector. The key lessons and experience incorporated in the proposed project from the transport sector in Timor-Leste and ADB’s energy operations in Nusa Tenggara which is contiguous to the proposed project area, include (i) the development of a flexible and adaptive project design, accounting for the country’s fragile and conflict-affected situation status, (ii) additional support for the advance procurement of project components to mitigate potential implementation delays, (iii) project implementation support to proactively identify and address potential issues due to weak institutional capacity, and (iv) targeted assistance to develop effective operation and maintenance (O&M) programs to ensure the long term sustainability of the expected project benefits. 10. Alignment with ADB policies and strategies. The project will help achieve five operational priorities of ADB’s Strategy 2030 (Table 1).11 The project supports the following priorities under ADB’s country partnership strategy for Timor-Leste, 2016–2020 and the proposed country partnership strategy for Timor-Leste, 2023-2027:12 (i) improving the coverage and reliability of electricity services, (ii) reducing net subsidies for infrastructure O&M, (iii) climate proofing new and existing infrastructure, and (iv) mainstreaming gender equality. The project is included in ADB’s country operations business plan for Timor-Leste, 2021–202313 and aligns with the promotion of capacity building under ADB’s Energy Policy 2009.14 The project is consistent with the recommendation of the recent ADB sector-wide evaluation of the ADB Energy Policy and Program with respect to improving assistance to the power distribution sector with policy reforms and innovations.15

Table 1: Alignment with Strategy 2030 Strategy 2030 Priorities Project Contributions

Accelerating progress in gender equality Women’s access to infrastructure and services will be improved, empowering women economically and elevating gender equality in decision-making and leadership.

Tackling climate change, building climate and disaster resilience, and encouraging environmental sustainability

Reducing distribution technical losses will lower harmful carbon dioxide emissions and air pollution. The distribution network will be strengthened to mitigate impacts from extreme weather events.

Making cities more livable A modernized and strengthened distribution network will provide the urban population with reliable electricity supply that will support additional income generating

11 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific.

Manila. 12 ADB. 2016. Country Partnership Strategy: Timor-Leste, 2016–2020. Manila. Country Operations

Business Plan: Timor-Leste, 2021–2023. Manila. The country operations business plan, 2021-2023 extended the country partnership strategy, 2016–2020 to cover up to 2022. The country partnership strategy for Timor-Leste, 2023–2027 will be prepared for the approval of the ADB Board of Directors in 2022.

13 ADB. 2020. Country Operations Business Plan: Timor-Leste, 2021–2023. Manila. 14 ADB. 2009. Energy Policy. Manila. 15 ADB. 2020. Sector-Wide Evaluation: ADB Energy Policy and Program, 2009–2019. Manila.

4

Strategy 2030 Priorities Project Contributions

activities, improved education outcomes, and mitigate the adverse health impacts of indoor combustion of biofuels.

Promoting rural development and food security

Targeting rural regions with poor electricity reliability will expand livelihood options, and support the development of cold storage for food and medicine.

Strengthening governance and institutional capacity

Efficient utilization of modern technologies such as grid automation and asset management using a geographic information system and improved capacity in competitive procurement, project management, and financial management practices of Electricidade de Timor-Leste.

Source: Asian Development Bank.

B. Project Description 11. The project is aligned with the following impact: access to reliable electricity supply enhanced.16 The project will have the following outcome: power supply reliability and financial performance of EDTL improved.17 12. Output 1: Service delivery to end users strengthened. To reduce the pervasive problem of high commercial losses and make revenue collection more efficient, the project will (i) upgrade and install 140,000 smart meters, of which at least 10% will be in households headed by women, required to better manage electricity consumption and monitor household electricity expenditure;18 (ii) distribute 138,800 smart cards to recharge prepaid meters, providing access to at least 416,400 female household members;19 and (iii) install 15 vending kiosks for smart card recharging, of which at least 50% will be owned by women.20 13. To improve distribution network operation and reliability and reduce technical losses, the project will (i) install a DAS and upgrade distribution automation equipment, (ii) install 25 distribution transformers to reduce overloading, (iii) install 60 circuit kilometers (cct-km) of 20-kilovolt (kV) interconnection lines, (iv) construct a distribution control center building and install control center equipment, and (v) rehabilitate the main distribution warehouse in Dili. 14. The DMIS will improve EDTL’s asset management and maintenance programs to support the sustainable operation of the distribution network. The project will (i) procure and install a geographic information system, customer information system, and facility management system, all integrated with the DAS; and (ii) collect network and disaggregated consumer data with location and mapping of the entire distribution network: 20 kV lines, distribution transformers, switchgear, 0.4 kV lines, and consumers.

16 Government of Timor-Leste. 2011. Timor-Leste Strategic Development Plan, 2011–2030. Dili. 17 The design and monitoring framework is in Appendix 1. 18 In the absence of a national definition of households headed by women, the project will apply the International Labour

Organization definition of households headed by women: households where either no adult males are present, owing to divorce, separation, migration, non-marriage, or widowhood; or where the men, although present, do not contribute to the household income because of illness or disability, old age, alcoholism, or similar incapacity (but not because of unemployment). International Labour Organization. 2007. ABC of Women Workers’ Rights and Gender Equality. Geneva.

19 Households that will be issued prepaid smart rechargeable cards have, on average, three women per household. 20 As households headed by women are categorized as vulnerable, particular attention needs to be paid to improve

their living standards. It is likely that saving money by decreasing monthly expenditure on electricity and ensuring the safe use of electricity will reduce financial burdens on women. The vending kiosks will be located in the regional offices and Dili.

5

15. Output 2: Distribution network upgraded and regional offices constructed and/or rehabilitated to green standards. Under this output, the project will (i) install and upgrade 175 cct-km of 20 kV distribution lines; (ii) install 10 distribution transformers with low-voltage switchgear; (iii) upgrade 75 low-voltage switchgears in distribution transformers; (iv) install and upgrade 230 cct-km of low-voltage 0.4 kV distribution lines; (v) replace 34,500 outdated service connections; and (vi) construct or rehabilitate 12 regional EDTL offices to green building standard and with gender-sensitive design features. The project will promote women’s participation in nontraditional trades by ensuring that at least 20% of skilled and unskilled laborers hired are women.

16. Output 3: Institutional and community capacity for electrical safety and operations strengthened. Since the project management unit (PMU) is new, the tasks of the project supervision consultant (PSC) will include a high proportion of capacity building and training for EDTL staff, with at least 30% participation by women, in distribution loss reduction, DAS, DMIS procurement, engineering design, project implementation, safeguard management, and power system planning. The PSC will help EDTL develop guidelines and O&M manuals for the DAS and the DMIS and update power transmission and distribution grid codes. EDTL, with support from the PSC, will provide training sessions to community participants on the safe and productive uses of electricity, ensuring that at least 50% of participants are women. C. Value Added by ADB 17. The Government of Timor-Leste initiated a number of ambitious institutional electricity sector reforms in 2020 to (i) expand and modernize the national power system; (ii) improve the public service provision of electricity; (iii) increase the standards of quality and the level of reliability at accessible prices; and (iv) improve the viability, governance, and sustainability of the sector. The project will be Timor-Leste’s first energy project financed by ADB and other development partners. ADB is providing TA to support institutional reforms in the electricity sector by providing capacity building to strengthen the corporatization transition of EDTL.21 The Republic of Korea is providing TA to EDTL through a knowledge-sharing program to build capacity in (i) distribution loss reduction, (ii) engineering design of distribution networks, (iii) distribution system management, and (iv) technical guidelines. The project will support these reforms and add considerable value by (i) establishing the first dedicated energy sector PMU to build capacity for ADB and other development partner energy projects; (ii) helping EDTL develop environmental, social, and gender management systems applicable to all its operations, as well as providing safeguard training and support to strengthen EDTL’s implementation, supervision, and monitoring capacity; (iii) improving the financial sustainability and management of the electricity sector through a financial management action plan and a corporatization and financial sustainability plan; and (iv) improving the sustainable management of O&M programs by establishing appropriate systems. Essential infrastructure is a prerequisite to develop Timor-Leste’s growth sectors of agriculture, tourism, and manufacturing. The project will complement ADB’s assistance in the transport and water sectors to improve essential infrastructure and connectivity, create jobs, and support the government’s COVID-19 economic recovery plan (footnote 4). D. Summary Cost Estimates and Financing Plan 18. The project is estimated to cost $50 million (Table 2). Detailed cost estimates by expenditure category and financier are included in the project administration manual (PAM).22

21 ADB. 2019. Technical Assistance to Timor-Leste for Implementing Reforms for Growth and Competitiveness. Manila. 22 Project Administration Manual (accessible from the list of linked documents in Appendix 2).

6

Table 2: Summary Cost Estimates ($ million)

Item Amount a A. Base Costs b

1. Output 1: Service delivery to end users strengthened 27.63 2. Output 2: Distribution network upgraded and regional offices constructed

and/or rehabilitated to green standards 12.79

3. Output 3: Institutional and community capacity for electrical safety and operations strengthened

2.77

Subtotal (A) 43.20 B. Contingenciesc 6.13 C. Financial Charges during Implementationd 0.67 Total (A+B+C) 50.00

Note: Numbers may not sum precisely because of rounding. a Includes taxes and duties of $1.63 million. Such amount does not represent an excessive share of the project cost.

The Asian Development Bank will finance taxes and duties of $1.10 million. The government will finance taxes and duties of $0.53 by cash contribution.

b In mid-2021 prices as of 21 May 2021. c Physical and price contingencies. d Includes interest, commitment, and other charges on all sources of financing. Source: Asian Development Bank estimates.

19. The government has requested a regular loan of $35 million from ADB’s ordinary capital resources to help finance the project. The loan will have a 20-year term, including a grace period of 5 years; an annual interest rate determined in accordance with ADB’s London interbank offered rate (LIBOR)–based lending facility; a commitment charge of 0.15% per year (interest and other charges during construction to be capitalized in the loan); and such other terms and conditions set forth in the draft loan agreement. Based on the straight-line method, the average maturity is 12.75 years, and there is no maturity premium payable to ADB. 20. The summary financing plan is in Table 3. ADB will finance expenditure in relation to deployment of smart meters, construction of the distribution control center building, installation of the DAS, establishment of the DMIS, consulting services, financing charges during construction, and taxes and duties. The government will finance the rehabilitation of the distribution network and regional offices, and taxes and duties.

Table 3: Summary Financing Plan

Source Amount ($ million)

Share of Total (%)

Asian Development Bank Ordinary capital resources (regular loan) 35.00 70.0

Government of Timor-Leste 15.00 30.0 Total 50.00 100.0

Source: Asian Development Bank estimates.

21. Climate mitigation is estimated to cost $30.8 million and climate adaptation $1.1 million. ADB will finance 100% of mitigation and adaptation costs.23 E. Implementation Arrangements 22. The executing agency will be the Council for Administration of the Infrastructure Fund (CAFI) and the implementing agency will be the Ministry of Public Works (MPW). CAFI,

23 Climate Change Assessment (accessible from the list of linked documents in Appendix 2).

7

responsible for overseeing the government’s Infrastructure Fund, is composed of government officials and led by the Minister of Planning and Territory. EDTL will be the project implementing unit. A dedicated power sector PMU will be established within EDTL. The PMU will oversee project monitoring and reporting, safeguard compliance, and project management, and will assist the National Procurement Commission (NPC) in preparing bidding documents for the rehabilitation of the distribution network and regional offices.24 Procurement will be undertaken following the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). Implementation arrangements are summarized in Table 4 and described in detail in the PAM (footnote 22). 23. The impact of COVID-19 is evolving, and the project will be responsive and flexible to meet emerging needs and abide by new guidance. The project will strictly follow government guidance on working safely under COVID-19 conditions, adhering to medical and scientific advice. Contractors will be required to incorporate emerging international construction best practice on social distancing where possible for works of this nature, implementation methodologies, the effective use of forced air ventilation systems, and personal protective equipment.

Table 4: Implementation Arrangements Aspects Arrangements Implementation period December 2021–December 2026 Estimated completion date 31 December 2026 Estimated loan closing date 30 June 2027 Management

(i) Executing agency Council for Administration of the Infrastructure Fund Minister of Planning and Territory (chair) Minister of Public Works (member) Minister of Finance (member) Minister of Transport and Communications (member)

(ii) Implementing agency Ministry of Public Works (iii) Implementing unit Electricidade de Timor-Leste

Procurementa OCB (internationally advertised)

4 contracts $26.76 million

Consulting services QCBS, FTP 110 person-months $2.77 million Advance contracting Advance contracting has been identified for project supervision

consultant and smart metering packages. Disbursement Disbursement of the loan proceeds will follow ADB’s Loan

Disbursement Handbook (2017, as amended from time to time) and detailed arrangements agreed between the government and ADB.

ADB = Asian Development Bank, FTP = full technical proposal, OCB = open competitive bidding, QCBS = quality- and cost-based selection. a The details are in the Procurement Plan in the Project Administration Manual (accessible from the list of linked

documents in Appendix 2). Source: Asian Development Bank estimates.

III. ATTACHED TECHNICAL ASSISTANCE 24. The attached TA, Capacity Building of Electricidade de Timor-Leste in Distribution Network Operation and Maintenance, will support three outputs: (i) implementation of the project; (ii) strengthening of EDTL’s corporatization process; and (iii) building EDTL capacity for regulation, maintenance planning, network operation, safeguards, and financial management.25

24 The NPC manages procurement for contracts worth at least $1 million for civil works, $250,000 for goods and related

services, and $200,000 for consulting services. 25 Attached Technical Assistance (accessible from the list of linked documents in Appendix 2).

8

The TA is estimated to cost $775,000, of which $750,000 will be financed on a grant basis by ADB’s Technical Assistance Special Fund (TASF 7). The government will provide counterpart support in the form of data acquisition, counterpart staff, office space and communication facilities, and other in-kind contributions.

IV. DUE DILIGENCE A. Technical 25. The project was assessed as technically viable with low technical risk. Best-in-class off-the-shelf technology will be deployed for smart metering and rehabilitation of the distribution network, including the installation of network protection, construction of a dispatch center for distribution, and installation of a DAS and a DMIS. EDTL has more than a decade of experience managing the distribution system. Several international manufacturers are capable of supplying metering infrastructure, DAS, and DMIS of the required quality and reliability. The sections of the distribution network for rehabilitation, location of the automation switchgear, and 20 kV interconnection lines will be selected based on additional site surveys and technical studies, which will be completed when international consultants are mobilized. Vendors and the PSC will provide training and guidance on the DAS and the DMIS. Manuals and processes will be developed by the PSC to support sustainable O&M of project facilities. Climate change risk to the project is assessed to be medium as the project area experiences monsoons, rising sea levels, landslides, and flooding (footnote 10). Detailed project design has incorporated elements to mitigate these risks, including sectionalization and protection of the distribution system. B. Economic and Financial Viability 26. The economic evaluation of the project was carried out in accordance with ADB’s Guidelines for the Economic Analysis of Projects.26 A with- and without-project framework was adopted, and the economic internal rate of return was measured against an assumed hurdle rate of 9.0%. The project is economically viable, with an economic internal rate of return of 11.8%. Economic benefits are derived from reduced electricity consumption through loss reduction and less frequent outages. Sensitivity analysis demonstrates that the expected economic performance is robust. 27. The project is financially viable, with a financial internal rate of return of 28.7%, which is considerably higher than the 4.7% weighted average real cost of capital. Sensitivity analysis was conducted to account for potential variation in financial viability. The financial viability of the project is robust, as the financial internal rate of return exceeded the weighted average cost of capital under all scenarios.27

26 ADB. 2017. Guidelines for the Economic Analysis of Projects. Manila. 27 Financial Analysis and Economic Analysis (accessible from the list of linked documents in Appendix 2).

9

C. Sustainability 28. EDTL will face several financial and operational sustainability challenges as it transitions from an MPW department into an efficient, commercial public utility corporation. To support the transition, ADB will provide an attached TA (para. 24) and the PSC will strengthen the financial management capacity of EDTL to improve its long-term financial sustainability. The project is assessed as financially viable and is expected to generate strong positive cash flows to support ongoing capital investment, service project debt, and finance O&M expenditure. The project will, therefore, strengthen EDTL’s long-term financial sustainability. Project design incorporates adaptation measures to lessen the identified climate vulnerability and will mitigate climate change over the life of the assets created under the project (footnote 22). D. Governance 29. The financial management risk before mitigation is assessed as high because of the uncertainties created during EDTL’s transition into an SOE from an MPW department and the need to establish new financial management systems and controls. EDTL is establishing new business processes, with support from an ongoing ADB TA (footnote 21), which will strengthen EDTL’s procurement, governance framework, financial management, internal audit function, and contract management capacity. EDTL will benefit from support provided by the PSC during project implementation. The attached TA will help the government improve the performance of the energy sector through technical support, policy advice, and capacity development. ADB will closely monitor EDTL’s corporatization road map and the quarterly reports from EDTL on business plan progress. 30. The NPC is responsible for procuring works worth at least $1 million, goods at least $250,000, and consultancy services at least $200,000 in accordance with Decree Law No. 14/2011. The MPW and EDTL will undertake procurement below these thresholds. The NPC has experience procuring for projects financed by ADB, other development partners, and the government but has limited experience in energy projects. ADB carried out strategic procurement planning to ensure that procurement approaches fit for purpose are developed to maximize value for money, given capacity constraints of the NPC, MPW, EDTL, and the government. Project consultants will assist the MPW, EDTL, and NPC in pre-procurement and procurement activities. Contracts are packaged to consider market competitiveness and supplier and/or contractor interest, especially for technology procurement, notably smart meters and the DAS. 31. ADB conducted integrity due diligence on EDTL and the members of its executive committee and board of directors.28 They do not appear to constitute a significant or potentially significant integrity risk. ADB has obtained reasonable assurance that EDTL was not established, and is not being used, for money laundering or terrorism financing. 32. ADB’s Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government, Ministry of Finance, MPW, and EDTL. The specific policy requirements and supplementary measures are described in the PAM (footnote 21). E. Poverty, Social, and Gender 33. Poverty and social. People in the project area will benefit from improved grid stability, which will minimize the time spent collecting fuel and increase income-generating opportunities

28 ADB. 2013. Enhancing the Asian Development Bank’s Role in Combating Money Laundering and the Financing of

Terrorism. Manila.

10

for poor households. More reliable electric power is expected to support increased economic activity to benefit large industries, small and medium-sized enterprises, and community facilities such as clinics and schools, with possible indirect benefit from jobs created for local people. Upgrading the distribution system expedites rural electrification, which improves the rural economy. 34. Gender. The project is categorized as effective gender mainstreaming. The project will increase women’s access to, participation in, and benefit from improved electricity delivery by (i) upgrading electricity meters to better manage electricity consumption and monitor electricity expenditure of at least 14,000 households headed by women; (ii) providing about 416,400 females with access to smart cards (footnote 19); (iii) establishing 15 new prepaid rechargeable card vending kiosks, of which at least 50% will be owned by women; (iv) ensuring that project construction provides at least 20% of its jobs to women and gender-sensitive design features that meet the needs of women on-the-job; (v) delivering technical training to female EDTL staff; and (vi) strengthening community knowledge and understanding of good energy practices, including at least 50% participation by women in each village in community training sessions on electrical safety and productive uses of electricity. The project will be supported by a gender action plan. 29 The PMU and PSC will hire a social and gender specialist and commit at least 25% of PMU staff positions to women. F. Safeguards 35. In compliance with ADB’s Safeguard Policy Statement (2009), the project’s safeguard categories are as follows.30 36. Environment (category B). The project will not cause significant negative environmental impacts, and any potential negative environmental impacts are small scale and localized and can be mitigated through appropriate measures. Based on a screening of project components and activities, the project is classified as category B for the environment in accordance with ADB’s Safeguard Policy Statement (2009). No components will traverse environmentally or culturally sensitive areas. Climate risk screening identified that the project is at risk of flooding, sea-level rise, and landslides. Appropriate adaptation measures will be incorporated into the detailed engineering design of the distribution lines, the distribution control center building and warehouse, and regional offices. An initial environmental examination and an environmental management plan prepared for the project detail mitigation measures, monitoring activities, reporting requirements, and institutional responsibilities on environment safeguards.31 The environmental management plan will be included in bid documents and contract requirements.

37. Involuntary resettlement (category C). Resettlement due diligence found no land acquisition required by the project. The resettlement due diligence report will be updated following detailed engineering design of the rehabilitation of the distribution network. If land must be acquired from private individuals and/or households for any construction and/or rehabilitation work, a resettlement plan will be prepared in accordance with ADB’s Safeguard Policy Statement (2009) and submitted to the government and ADB for review and approval. A resettlement framework has been prepared to guide resettlement plan preparation, implementation, and monitoring if the project requires land acquisition. 32

29 Gender Action Plan (accessible from the list of linked documents in Appendix 2). 30 ADB. Safeguard Categories. 31 Initial Environmental Examination (accessible from the list of linked documents in Appendix 2). 32 Resettlement Framework (accessible from the list of linked documents in Appendix 2).

11

38. Indigenous peoples (category C). Due diligence confirmed that the project is not expected to have any impact on indigenous peoples, as it will not affect areas with notable indigenous communities. It will not directly or indirectly affect the dignity, human rights, livelihood systems, or culture of indigenous peoples, or affect the territories of natural or cultural resources that indigenous peoples own, use, occupy, or claim as their ancestral domain. G. Summary of Risk Assessment and Risk Management Plan 39. Overall project risk is moderate. Significant risks and mitigating measures are summarized in Table 5 and described in detail in the risk assessment and risk management plan.33

Table 5: Summary of Risks and Mitigating Measures Risks Mitigation Measures EDTL’s recently established administrative structure and technical staff capacity are not adequate to maintain project investments.

A system planning department and a geographic information system unit will be established. The necessary expertise will be recruited, trained, and developed within EDTL through the PSC using on-the-job training, vendor technical training, and technical assistance capacity building workshops.

Unmetered customers resist installation of electricity meters

The benefits of installing meters and monitoring electricity consumption will be included in the community training sessions. The lowest domestic tariff is considered affordable for the majority of households and a safety-net program is recommended to protect a small percentage of vulnerable households who cannot afford to pay the lowest electricity tariff.

Counterpart funds not provided in a timely manner and a poorly executed business plan inflict financial distress on EDTL

A loan covenant will require EDTL to publish a corporatization and financial sustainability plan. Regular monitoring against the plan and the government’s budget allocations will be included in project progress reports. A financial covenant will be included to ensure that EDTL’s revenue, together with the government’s budget support, will be sufficient to cover EDTL’s operating expenditure.

Weak public financial management practices result in poor accountability of project expenditures

ADB will support the PMU by conducting integrity knowledge session(s) to improve awareness of, and compliance with, ADB’s Anticorruption Policy (1998, as amended to date). The Anti-Corruption Commission of Timor-Leste will undertake preventive action and criminal investigations against corruption in any form. The Timor-Leste eProcurement process will be followed for the project under the MOF.

Poor corporate governance and lack of internal controls within EDTL result in financial loss

A transparent and accountable corporate governance structure will be implemented, guidelines and operating procedures will be established, and the project will be included in the annual work program of the implementing agency’s internal audit department. All payments will be approved by the MOF, providing additional scrutiny.

COVID-19 mobility restrictions and supply chain disruption cause delays in procurement and contract awards

The PSC and start-up support consultants will assist the PMU in advanced procurement actions and management of risks associated with supply chain disruption.

ADB = Asian Development Bank, COVID-19 = coronavirus disease, EDTL = Electricidade de Timor-Leste, MOF = Ministry of Finance, PMU = project management unit, PSC = project supervision consultant. Source: Asian Development Bank.

V. ASSURANCES

40. The government has assured ADB that implementation of the project shall conform to all applicable ADB requirements, including those concerning anticorruption measures, safeguards, gender, procurement, consulting services, financial management, and disbursement as described in detail in the PAM and loan documents.

33 Risk Assessment and Risk Management Plan (accessible from the list of linked documents in Appendix 2).

12

41. The government has agreed with ADB on certain covenants for the project, which are set forth in the draft loan agreement.

VI. RECOMMENDATION 42. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Asian Development Bank (ADB) and recommend that the Board approve the loan of $35,000,000 to the Democratic Republic of Timor-Leste for the Power Distribution Modernization Project, from ADB’s ordinary capital resources, in regular terms, with interest to be determined in accordance with ADB’s London interbank offered rate (LIBOR)–based lending facility; for a term of 20 years, including a grace period of 5 years; and such other terms and conditions as are substantially in accordance with those set forth in the draft loan agreement presented to the Board.

Masatsugu Asakawa President

4 October 2021

Appendix 1 13

DESIGN AND MONITORING FRAMEWORK

Impacts the Project is Aligned with Access to reliable electricity supply enhanced (Timor-Leste Strategic Development Plan, 2011–2030)a

Results Chain Performance Indicators

Data Sources and Reporting

Mechanisms Risks and Critical

Assumptions Outcome Power supply reliability and financial performance of EDTL improved

By 2027: a. Distribution losses reduced to 25%b (2019 baseline: 50%) (OP 6.2.2, OP 6.2.1) b. 20 kV level supply: system average interruption frequency index improved to 41/consumer/year (2019 baseline: 61/consumer/year) (OP 4.1.1) c. EDTL’s operating loss margin decreased to –80% (2019 baseline: –176%) (OP 6.2.2)

a. EDTL performance logs and PMU quarterly reports b. PMU quarterly reports c. EDTL audited financial reports

R: EDTL’s lack of ownership, administrative structure, technical staff, and training to maintain network modernization components

Outputs 1. Service delivery

to end users strengthened

By 2026: 1a. 140,000 smart meters installed, of which at least 10% will be in households headed by womenc (2020 baseline: 0) (OP 4.1.2, OP 5.1.1, OP 2.5.2) 1b. 138,800 new prepaid rechargeable smart cards provided to households, with at least 416,400 females given access to the smart cardsd (2020 baseline: 0) (OP 4.1.2, OP 5.1.1, OP 2.1.4) 1c. 15 new prepaid rechargeable smart card vending kiosks established, of which at least 50% are owned by women (2020 baseline: 0) (OP 4.1.2, OP 2.1.4) 1d. A distribution control center building newly constructed to green building standard, including a solar photovoltaic rooftop system, and the main Dili distribution warehouse rehabilitated (2020 baseline: 0) (OP 4.1.2, OP 3.2.5, OP 5.1.1) 1e. A DAS, field equipment, 25 new distribution transformers, 60 cct-km of 20 kV interconnection lines for transferring load, and control center equipment installed (2020 baseline: 0) (OP 4.1.2, OP 3.2.5, OP 5.1.1) 1f. Geographic information system established along with customer information system and facility management system, all integrated with the DAS (2020 baseline: 0) (OP 4.1.2, OP 5.1.1) 1g. 140,000 leaflets on smart meters and prepaid rechargeable smart cards provided to users in the project area, at least 30% of them to women (2020 baseline: 0) (OP 6.2.4) 1h. Public consultation meetings and awareness campaign on the use and benefits of prepaid meters and project activities to

1a.–h. EDTL DMIS and/or PMU quarterly reports

R: Delays to establishing new systems, administrative structure, and processes within EDTL may cause project implementation delays. R: Delays in procurement and contract awards caused by coronavirus disease mobility

14 Appendix 1

Results Chain Performance Indicators

Data Sources and Reporting

Mechanisms Risks and Critical

Assumptions 2. Distribution

network upgraded and regional offices constructed and/or rehabilitated to green standards

3. Institutional and community capacity for electrical safety and operations strengthened

improve electricity reliability held in each village or commune, with women comprising at least 30% of meeting participants (2020 baseline: 0) (OP 6.2.4) 2a. 175 cct-km of 20 kV distribution lines, 75 low-voltage switchgears of distribution transformers, 230 cct-km of low-voltage distribution lines, and 34,500 replacement service connections installed and/or upgraded (2020 baseline: 0) (OP 3.2.5, OP 4.1.2) 2b.12 regional EDTL offices and distribution warehouses rehabilitated to green building standards and with gender-sensitive design featurese (2020 baseline: 0) (OP 3.2.5, OP 4.1.2) 2c. A provision that at least 20% of skilled and unskilled laborers hired shall be local women offered equal resources, opportunity, and protection included in all construction contracts (2020 baseline: 0) (OP 2.1) 2d. At least 75% of contractors who participate in training on gender issues demonstrated improved understanding of, and sensitization toward, preventing behaviors that adversely impact women and girls in and around the project sitesf (baseline: 0) (OP 2.2.3) 3a. Guidelines and operation and maintenance manuals for the DAS, automatic meter reading, advanced meter infrastructure, the DMIS, and the dispatch and control center, including revised power transmission and distribution grid codes, published and implemented (2020 baseline: 0) (OP 6.2.1) 3b. At least 100 EDTL staff who participated in training, of whom at least 30% are women, demonstrated improved knowledge and understanding of the distribution loss reduction program, the DAS, the DMIS, advanced meter infrastructure, procurement, engineering design, project implementation, safeguard management, and power system planning (2020 baseline: 0) (OP 2.1.1) 3c. Community participants in training sessions on electrical safety and productive uses of electricity in each village, of whom at least 50% are women, demonstrated increased knowledge of good energy practices (2020 baseline: 0) (OP 2.5.1)

2a.–d. EDTL DMIS and PMU quarterly reports 3a. PMU quarterly reports, operating guidelines and manuals, published grid codes, and PMU quarterly reports 3b. PMU quarterly reports and training assessments and feedback 3c. PMU quarterly reports based on end-of-workshop surveys

restrictions and supply chain disruption A: Data communication available in rural areas R: Counterpart funds not provided in a timely manner, causing implementation delays

Key Activities with Milestones 1. Service delivery to end users strengthened Key Activities with Milestones 1.1 Issue bidding documents for the supply of smart meters by Q3 2021.

Appendix 1 15

Results Chain Performance Indicators

Data Sources and Reporting

Mechanisms Risks and Critical

Assumptions 1.2 Issue request for proposal for smart meter installation by Q3 2021. 1.3 Award contract for the supply of smart meters by Q1 2022. 1.4 Award contract for smart meter installation by Q1 2022. 1.5 Install smart meters by Q1 2026. 1.6 Issue bidding documents for the DAS package, including the distribution control center building construction and

warehouse rehabilitation, by Q3 2022. 1.7 Award the DAS package, including the distribution control center building construction and warehouse rehabilitation,

by Q4 2022. 1.8 Install the DAS by Q1 2026. 1.9 Construct the distribution control center building and rehabilitate warehouses by Q3 2024. 1.10 Issue bidding documents for the DMIS package by Q4 2021. 1.11 Award the DMIS package by Q1 2022. 1.12 Install the DMIS by Q1 2026. 2. Distribution network upgraded and regional offices constructed and/or rehabilitated to green standards 2.1 Issue bidding documents for goods and works contracts for regional office buildings by Q1 2022. 2.2 Issue bidding documents for goods and works contracts for network rehabilitation by Q2 2022. 2.3 Award goods and works contracts for regional office buildings by Q2 2022. 2.4 Award goods and works contracts for network rehabilitation by Q3 2022. 2.5 Upgrade distribution network by Q1 2026. 2.6 Construct and/or rehabilitate 12 regional office buildings to green building standard and with gender-sensitive design

features by Q1 2024. 2.7 Initiate recruitment of skilled and unskilled laborers, including women, by Q3 2022. 3. Institutional and community capacity for electrical safety and operations strengthened 3.1 Publish operation and maintenance manuals and guidelines by Q4 2023. 3.2 Complete training on smart metering, system operation, the DAS, and the DMIS by Q4 2024. 3.3 Validate knowledge acquired by EDTL employees through training by Q2 2025. 3.4 Survey commune training participants to validate improved knowledge by Q1 2026. Project Management Activities Make PMU operational by Q2 2021. Mobilize project supervision consultant by Q1 2022. Inputs Asian Development Bank: $35,000,000 (loan) $750,000 Technical Assistance Special Fund (TASF 7) Government of Timor-Leste: $15,000,000

A = assumption, cct-km = circuit kilometer, DAS = distribution automation system, DMIS = distribution management information system, EDTL = Electricidade de Timor-Leste, kV = kilovolt, OP = operational priority, PMU = project management unit, Q = quarter, R = risk, TASF = technical assistance special fund. a Government of Timor-Leste. 2011. Timor-Leste Strategic Development Plan, 2011–2030. Dili. b Distribution losses include technical and commercial distribution losses. c In the absence of a national definition of households headed by women, the project will apply the International Labour

Organization definition of households headed by women: households where either no adult males are present, owing to divorce, separation, migration, non-marriage, or widowhood; or where the men, although present, do not contribute to the household income because of illness or disability, old age, alcoholism, or similar incapacity (but not because of unemployment). International Labour Organization. 2007. ABC of Women Workers’ Rights and Gender Equality. Geneva; there are approximately 200,000 customers in the project area with an estimated 50,000 customers with no electricity meters. The customers with no meters will be prioritized by the project for installation.

d Households that are issued prepaid smart charge cards have, on average, three women per household. e In this context, gender-sensitive designs include access to clean and potable water, and separate restrooms for male

and female staff, which were previously not available. f In this context, contractors can be management or skilled and unskilled staff. Training on gender issues will include

topics covering gender-based stereotypes, gender-based violence, sexual exploitation, abuse and sexual harassment, human trafficking and HIV/AIDS, and other sexually transmitted diseases.

Contribution to Strategy 2030 Operational Priorities Expected values and methodological details for all OP indicators to which this operation will contribute results are detailed in Contribution to Strategy 2030 Operational Priorities (accessible from the list of linked documents in Appendix 2 of the Report and Recommendation of the President). Source: Asian Development Bank.

16 Appendix 2

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/RRPs/?id=49177-002-3

1. Loan Agreement

2. Sector Assessment (Summary): Energy

3. Project Administration Manual

4. Financial Analysis

5. Economic Analysis

6. Summary Poverty Reduction and Social Strategy

7. Risk Assessment and Risk Management Plan

8. Contribution to Strategy 2030 Operational Priorities

9. Attached Technical Assistance Report

10. Climate Change Assessment

11. Gender Action Plan

12. Initial Environmental Examination

13. Resettlement Framework

Supplementary Documents

14. Financial Management Assessment Report

15. Strategic Procurement Planning Report

16. Due Diligence Report on Resettlement