Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) LATIN AMERICA AND CARIBBEAN | Mexico | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 14 | ARCHIVED on 28-Jun-2023 | ISR56387 | Implementing Agencies: Secretaría de Energía (SENER), United Mexican States Key Dates Key Project Dates Bank Approval Date: 08-Mar-2016 Effectiveness Date: 23-Sep-2016 Planned Mid Term Review Date: 15-Jul-2019 Actual Mid-Term Review Date: 07-Oct-2019 Original Closing Date: 31-Oct-2021 Revised Closing Date: 28-Oct-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to promote the efficient use of energy in the Borrower's municipalities by carrying outenergy efficiency investments in selected municipal sectors and contribute to strengthening the enabling environment. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)HRPDODELs The objective is to promote the efficient use of energy in the Borrower’s municipalities and other eligible public facilities by carrying out energy efficiency investments in selected public sectors and to contribute to strengthening the enabling environment. Components Table Name Policy development and institutional strengthening:(Cost $2.12 M) Municipal energy efficiency investments:(Cost $55.19 M) Public Facility Energy Efficiency Investments:(Cost $9.38 M) Municipal Energy Efficiency Contingency Facility:(Cost $6.08 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate 6/28/2023 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) Implementation Status and Key Decisions The Project has completed 11 municipal street lighting subprojects. Another 9 subprojects are under implementation, of which 2 have already finalized lighting installation, and another 4 are quite advanced and are expected to finalize by July 2023, while the last 3 are expected to start between June and July 2023 to finalize works by September 2023. The Project is also implementing subprojects in hospitals: 16 facilities administered by IMSS[PG1] (Instituto Mexicano de Seguro Social, or Mexican Social Security Institute, in English) and 2 administered by the State of Tabasco. Solar photovoltaic (PV) systems are being installed in all 18 hospitals, while replacement of lighting systems is ongoing in 13 of them, and replacement of air conditioning have started in 6 of the 18 hospitals. The energy efficiency investment subprojects already completed and those under implementation are expected to generate lifetime energy savings of 389,846 MWh and greenhouse gas emission reductions of 176,028 tCO2/year, surpassing the project’s target indicators of 290,000 MWh and 145,000 tCO2 respectively. The technical assistance (TA) activities under Component 1 and 3a (Policy development and institutional strengthening) are ongoing, and their progress is satisfactory. These activities are informing the update of national energy efficiency regulations for buildings (residential and commercial) and street lighting, identifying PRESMEH lessons learned, and implementing an online course on energy efficiency in hospitals. The 4 TA activities are expected to be completed by August 2023. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Low Low Low Sector Strategies and Policies Low Low Low Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Moderate Environment and Social Low Low Low Stakeholders Low Moderate Moderate Other Moderate Moderate -- Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Promote the efficient use of energy IN01297532 ►Projected lifetime energy savings (Megawatt hour(MWh) (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 184,759.00 184,759.00 290,000.00 6/28/2023 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) Date 31-Jul-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 The following results reflect energy savings from 11 municipal street lighting subprojects already completed. Energy savings measures are being implemented in other 9 municipalities and 18 hospitals. All of them are expected to be completed by the project closing date, with their associated estimated energy savings that would allow to meet the end target. Comments: The installation works to replace street lighting are completed in Minantital and Nanchital municipalities; notwithstanding, municipal authorities are yet to sign the “final reception certification” (“acta final de recepción” in Spanish) to complete the administrative closure of both subrojects. So, these projects are not yet considered completed. As soon as municipalities sign certifications, this indicator value will increase to 192,622 MWh. Promote the efficient use of energy IN01297534 ►Number of ESAs signed (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 35.00 21.00 Date 31-Jul-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 Promote the efficient use of energy IN01297533 ►Projected Lifetime GHG emission reductions (tones/year) (Tons/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 87,919.00 87,919.00 145,000.00 Date 31-Jul-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 GHG savings are derived from the energy savings attributable to the project’ energy efficiency investments in municipal street lighting and hospitals and calculated using the national grid emissions factor. Comments: As soon as Minatitlan and Nanchital municipalities sign the final reception certification, this indicator value will increase to 91,245 tones/year. Strengthening the enabling environment IN01297535 ►Number of regulatory information tools designed to support the implementation of the national energy efficiency strategy (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Jul-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 The expected outputs under Component 1 will inform the update of 2 national energy efficiency norms in buildings and 1 national energy efficiency norm in street lighting by CONUEE. These norms will be three Comments: tools to scale-up energy efficiency at national level. The activities are expected to be completed by August 2023 and will enable meeting the target for this Results Indicator 6/28/2023 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) Intermediate Results Indicators by Components Policy development and institutional strengthening IN01297617 ►Participants in engagement activities during project implementation (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 429.00 493.00 300.00 Date 01-Feb-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 IN01297621 Participants in engagement activities during project implementation – female (Number) (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95.00 97.00 100.00 Date 01-Feb-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 Municipal energy efficiency investments IN01297616 ►Average of payment discipline per municpality (avoidance of default) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 90.00 Date 01-Feb-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 IN01297619 ►Number of Street light interventions (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 14.00 Date 01-Feb-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 Street light interventions have been completed in the following 11 municipalities: Leon, Miguel Hidalgo, Huajapan de Leon, Oaxaca, Cozumel, Culiacan, Rio Grande, Los Pinos, Solidaridad and Xalapa, and Coatzacoalcos. Activity initiation agreements (CIA) have been signed with ten (10) other municipalities to implement energy efficient street lighting interventions (CIAs for Minatitlán, Nanchital, Mineral de la Reforma, Córdoba, Calkiní, Dzitbalché, and Hermosillo signed between February and April 2022; the CIA for San Pablo del Monte was signed in July 2022, and the CIAs for Papantla and Tuxpan were signed in September 2022). Comments: Of these 10 municipalities, the procurement process for Nanchital was already underway at the time of the mission and since the October 2022 mission the procurement processes are being launched (by the December 2022 deadline) for Minatitlan, Mineral de la Reforma, Calkini, Dzibalche and Hidalgo. FIDE is working on the energy audits and executive projects of the remaining four municipalities in the Project’s Portfolio. Their procurement process would be launched under the Project only if the closing date of the Project is extended. With their implementation, the total number of street lighting interventions implemented under the PRESEMEH would reach 21. 6/28/2023 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) Public Facility Energy Efficiency Investments IN01297618 ►Capacity building, outreach and training activities implemented (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 12.00 Date 01-Feb-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 Two more capacity building and dissemination activities will be implemented: (i) the on-line training course on energy efficiency in hospitals, which design and implementation is currently ongoing under Component 3a, and (ii) a workshop to be organized by SENER and CONUEE to disseminate findings and results of Comments: the three consultancies being currently implemented under Component 1 on national energy efficiency regulations (NOM-08, NOM-0.13 and NOM-020). IN01297620 ►Number of Sub-projects designed (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45.00 47.00 22.00 Date 01-Feb-2016 22-Nov-2022 12-Jun-2023 28-Oct-2023 The end target for the results Indicator “Number of Sub-projects designed”, i.e., completion of energy audits for individual sub-projects, has been already exceeded: 25 energy audits in municipalities and 22 Comments: energy audits in individual hospitals In addition, additional subprojects for municipalilties are expected to be designed in the next three months IN01297622 ►Public Facility interventions (number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 07-Feb-2018 22-Nov-2022 12-Jun-2023 28-Oct-2023 The indicator refers to the administrative entity with which ESAs are signed for energy efficiency interventions in public facilities (i.e. hospitals)*. Under the Project, ESAs are being signed with IMSS and with the State of Tabasco, which will lead to energy efficiency interventions in their respective hospitals. The extension of the Closing Date will enable the completion of the hospitals (public facilities) Comments: interventions that are administered by IMSS and the State of Tabasco and will enable exceeding the Results Indicator target (2 is the expected result). *energy efficiency in public hospitals are a type of "public facility intervention" Overall Comments IR Note: The number of subprojects designed, meaning energy audits carried out, is higher than the target because, in order to avoid potential restrictions derived from the COVID-19 pandemic, it was decided to have a bigger pipeline of investment-ready hospitals, which could go through procurement quickly if EE interventions in any other hospital were canceled (as it happened in the 6 hospitals of Tabasco in 2020- 6/28/2023 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) 2021). So the design of a higher number of sub-projects (i.e., the number of energy audits) was essentially a strategy to try to manage the hospital closure risks associated with the COVID pandemic. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P149872 IBRD-85940 Effective USD 100.00 43.30 56.70 29.78 13.52 69% P149872 IBRD-88440 Effective USD 50.00 6.70 43.30 1.50 5.20 22% P160778 TF-A7062 Effective USD 5.79 5.79 0.00 5.79 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P149872 IBRD-85940 Effective 08-Mar-2016 29-Jul-2016 23-Sep-2016 31-Oct-2021 28-Oct-2023 P149872 IBRD-88440 Effective 30-Mar-2018 10-Aug-2018 26-Oct-2018 31-Oct-2021 28-Oct-2023 P160778 TF-A7062 Effective 30-Mar-2018 10-Aug-2018 26-Oct-2018 31-Oct-2021 28-Oct-2023 Cumulative Disbursements 6/28/2023 Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency in Public Facilities Project (PRESEMEH) (P149872) Restructuring History Level 2 Approved on 18-Dec-2020 ,Level 2 Approved on 14-Oct-2021 ,Level 2 Approved on 26-Jan-2023 Related Project(s) P160778-Additional Finance for Energy Efficiency in Public Facilities Project (PRESEMEH) ,P165585-Additional Financing for Energy Efficiency in Public Facilities Project (PRESEMEH) 6/28/2023 Page 7 of 7