The World Bank Report No: ISR8719 Implementation Status & Results Honduras Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Public Disclosure Copy Operation Name: Power Sector Efficiency Enhancement Project (PROMEF) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 23-Jan-2013 (P104034) Country: Honduras Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 22-Jan-2009 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 20-May-2013 Last Archived ISR Date 29-May-2012 Effectiveness Date 29-Jun-2010 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve ENEE's operational and financial performance, thus contributing to the sustainability of the power sector in Honduras. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Improving ENEE's commercial and corporate resource management 18.50 Rehabilitating distribution networks 14.60 Strengthening ENEE's institutional capacity and corporate governance 6.20 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Project implementation has progressed despite some implementation issues. Two of the three most important bidding processes were allocated awarded and are nearly complete under implementation: (i) the allocation of maintenance equipment transformers process; and (ii) the purchase and installation of Advance Metering Infrastructure (AMI) which was awarded in June 2012. In addition, The project's third main procurement process, the purchase and implementation of the Integrated Management System (IMS), which includes a Commercial Management Page 1 of 6 The World Bank Report No: ISR8719 System (CMS), a Corporate Resources Management System (CRMIS), and an Incidence Recording Management System (IRMS), is been re-launched. Progress has also been made in the environmental component of the project. ENEE has finalized the inventory of transformers in use with PCBs (269 units) in the low voltage electric line (4.16 Kv) and is in the process to identify sites for permanent storage of PCB-containing equipment, including transformers in use to be replaced and old transformers which Public Disclosure Copy currently are not stored properly. ENEE is also preparing the inventory of transformers in disuse contaminated with PCBs, which is estimated to be between 300 and 500 units. The Company signed a Cooperation Agreement with CESCCO, the agency in charge of the National Plan for Elimination of PCBs, which details the cooperation mechanisms to carry out inventories. The financial auditing for 2010 and 2011 was finalized by the contracted firm in early November, the final report is expected late November. Monitoring and evaluation: Due to delays in project implementation, in part the result of the complexity of the main bidding processes, there is a general delay in the compliance with the targets established in the results framework. However, given the current status of project activities, it is expected that significant progress will be achieved in the next 12 months. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increase in the Cash Recovery Index (CRI) in Text Value To be defined 8% improvement from each of the three regional distribution sub- baseline networks Date 31-Dec-2012 19-Dec-2012 31-Dec-2013 Comments Value to be defined once relevant project activities are under implementation Annual decrease in system average Text Value Average of the three month Improvement on an annual interruption duration index (SAIDI) period following basis implementation of the Incident Recording Management System (IRMS) in the whole company.Baseline: 3 mo. Public Disclosure Copy period prior to IRMS implementation Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 Comments The bidding processes for the activities that are expected to have an impact on this indicator are currently underway. Page 2 of 6 The World Bank Report No: ISR8719 Annual decrease in system average Text Value Average of the three month Improvement on an annual interruption frequency index (SAIFI) period following basis implementation of the Incident Recording Management Public Disclosure Copy System (IRMS) in the whole company. Date 31-Dec-2012 19-Dec-2012 31-Dec-2013 Comments The bidding processes for the activities that are expected to have an impact on this indicator are currently underway. Electricity losses per year in project area (core Percentage Value 22.50 29.00 15.00 indicator) Date 31-Dec-2010 19-Dec-2012 31-Dec-2013 Comments Implementation of project activities expected to have an impact on losses has not started yet. Average interruption frequency per year in the Number Value project area (core indicator) Date 31-Dec-2012 19-Dec-2012 31-Dec-2013 Comments 3 month prior to IRMS IRMS not yet in place. To be defined once baseline implementation. value is established. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Outcome 1: Improve ENEE's commercial Text Value 30,000 1400 5,000 management.Indicator: Number of AMRs Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 installed Comments The contract for the purchase of the automatic meters was awarded in October 24, Public Disclosure Copy 2012. These meters will be installed in April 2013. Meters are for high consumption customers. Outcome 1: Improve ENEE's commercial Text Value Systems are not in place yet. Systems in place and management.Indicator: CMS, IRMS and satisfactorily working CRMIS in place Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 Comments The contract for the purchase and implementation of the Page 3 of 6 The World Bank Report No: ISR8719 three systems is scheduled to be awarded in March 2013. Outcome 1: Improve ENEE's commercial Text Value 2008:0 40% of total customers management.Indicator: Number of customers Public Disclosure Copy Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 in CMS and IRMS database Comments To be monitored only once the CMS and the IRMS are in place. Outcome 1: Improve ENEE's commercial Text Value 2008:0 CMS: 50 or as needed IRMS: management.Indicator: Number of ENEE 10 or as needed CRMIS: 20 employees trained to use the CMS, IRMS, and or as needed CRMIS Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 Comments System not yet installed. In process of finalizing the bidding documents. Outcome 1: Improve ENEE's commercial Text Value Average of the 3 month Improvement in the average management.Indicator: Number of customer period following semiannually value compared claims related to billing implementation of the CMS in to the previous six month s main office s/whole company. Baseline data for 2008 under collection Date 31-Dec-2012 19-Dec-2012 31-Dec-2013 Comments To be monitored only once the CMS and the IRMS are in place. Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 452 Cumulative Yr 1:0 Yr 2:250 Yr Indicator: Number of transformers replaced 3 750 Yr 4:1000 Date 31-Dec-2008 20-Dec-2012 31-Dec-2013 Comments 452 new transformers have been installed to Dec 20, 2012 Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 0 Cumulative Yr1: 0 Yr2: 50 Public Disclosure Copy Indicator: Number of PCB-containing Yr3: 200 Yr4: 350 equipment replaced Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 Comments Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 20 Cumulative: Yr 1:5 Yr 2: 15 Yr Indicator: Number of heavy vehicles acquired 3: 25 Yr 4: 30 Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 Comments 19 Pick up 1 crane truck. Page 4 of 6 The World Bank Report No: ISR8719 Acquired on December 14, 2012 Outcome 3: Strengthen ENEE's institutional Text Value Separate business units do Separate business units capacityIndicator: Setup and operation of not exist operational Public Disclosure Copy separate business units Date 31-Dec-2008 19-Dec-2012 31-Dec-2013 Comments Process has not been launched yet. Outcome 3: Strengthen ENEE's institutional Text Value Distribution and Distribution and capacityIndicator: Setup and operation of the Commercialization Unit does Commercialization Unit Distribution and Commercialization unit not exist. operational Date 31-Dec-2008 19-Dec-2012 16-Dec-2013 Comments Process is currently under preparation. Outcome 3: Strengthen ENEE's institutional Text Value No key staff in distribution and Key staff selected and in capacityIndicator: Competitive selection of key commercialization unit place personnel in the distribution and Date 31-Dec-2008 19-Dec-2012 17-Jun-2013 commercialization unit (3 managers, 10 key Comments Process is currently under staff) preparation. Outcome 3: Strengthen ENEE's institutional Text Value Rate of acceptance of each Improvement in the average capacityConsumer satisfaction and perception group (e.g. consumers, annual value compared to the NGOs, civil society organizati previous year on) at time of first survey. Date 31-Dec-2012 19-Dec-2012 31-Dec-2013 Comments Value will be defined when project activities start implementation on the ground. Data on Financial Performance (as of 14-Dec-2012) Financial Agreement(s) Key Dates Public Disclosure Copy Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P104034 IDA-45360 Effective 22-Jan-2009 27-Feb-2009 29-Jun-2010 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P104034 IDA-45360 Effective XDR 20.20 18.68 1.52 3.90 14.78 21.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR8719 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 17-Jun-2010, Level two Approved on 04-Oct-2011 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6