The World Bank Implementation Status & Results Report Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) LATIN AMERICA AND CARIBBEAN | OECS Countries | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 13 | ARCHIVED on 13-Sep-2018 | ISR33550 | Implementing Agencies: Government of Grenada, Government of Saint Lucia, Saint Lucia Project Coordination Unit, Grenada Project Coordination Unit (PCU) Key Dates Key Project Dates Bank Approval Date: 16-Jun-2011 Effectiveness Date: 21-Jun-2012 Planned Mid Term Review Date: 27-Feb-2015 Actual Mid-Term Review Date: 27-Feb-2015 Original Closing Date: 31-Dec-2016 Revised Closing Date: 30-Nov-2018 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to establish and operationalize a regional approach to the development of the electricity sectorinParticipating Countries by supporting the establishment of the ECERA. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Setting up the ECERA:(Cost $2.61 M) Operationalizing ECERA:(Cost $2.99 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project has made little progress in terms of implementation since the last ISR. Given the impending closing date (November 30, 2018), the PDO is unlikely to be achieved in full, as the operationalization of ECERA will not take place by then. Hence, both the DO and IP final ratings for this project are set at MU, which includes the downgrade in the DO rating from the previous ISR. The PDO, however, remains relevant to both participating countries (Grenada and St. Lucía). Both countries maintain the view that a regional approach to the development of the energy sector, including through the establishment of ECERA, is necessary to facilitate renewable energy scale-up, increase private investment, improve utility performance, enhance energy efficiency, and facilitate technically and economically sound projects. St. Lucia’s National Utilities Regulatory Commission (NURC) and Grenada’s Public Utilities Regulatory Commission (PURC) are active with a full slate of commissioners. Because of implementation delays, however, there has been limited progress in the preparation of key 9/13/2018 Page 1 of 6 The World Bank Implementation Status & Results Report Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) regulation/legislation and technical studies, such as a comprehensive tariff review. Although these tasks are intended to be completed by the closing date, the prospects for completion are very slim at this point. Against this background, both client governments have expressed a desire to follow up with any needed tasks even after the closure of the project. The clients’ goal at this point is that the ECERA project coordinator work with specialized consultants to develop TORs and begin work on technical studies before the closure of the project, so that pending studies – the completion of a comprehensive tariff review; the preparation of electricity tariff recommendations; the preparation of the Electricity Supply Services Agreement; the establishment of Interconnection Agreements; and the finalization of the grid codes - can be completed in due course after project closure. A final announcement on the selected ECERA project coordinator is expected by mid-September. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- High High Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Substantial Substantial Other -- -- -- Overall -- Substantial Substantial Results 9/13/2018 Page 2 of 6 The World Bank Implementation Status & Results Report Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) PDO Indicators by Objectives / Outcomes Establish and operationalize regional approach to development of the electricity sector in SLU & GND IN00624533 ►ECERA provides advisory support as a regional regulatory advisory body to the national regulatory authorities in the Participating Countries (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The National Utility Regulatory Commission (NURC) established in No energy regulatory National energy St. Lucia and the Public authorities operating in Hiring of ECERA regulatory bodies Utilities Regulatory Value the participating bodies, project coordinator in receiving advisory Commission (PURC) and no regional advisory progress. support from the established in Grenada, body. regional ECERA. both with a legislative mandate and a full slate of commissioners. Date 24-Jun-2016 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624526 ►Design and adoption of cost reflective and performance based tariffs in the Participating Countries (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target No follow up since new Tariff setting process New electricity legislation electricity legislation depends on countries adopted in Grenada and Independent tariff was adopted in and provisions in existing St. Lucia establishes the setting process Value Grenada and St. licenses and policies means by which tariffs reflecting costs and Lucia. No progress in adopted from time to will be set to reflect costs performance independent tariff time and performance. setting process. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 Intermediate Results Indicators by Components Component 1 - Setting up the core functions of the ECERA IN00624499 ►Approved draft agreement, by the Ministers with responsibility for energy, for the establishment of ECERA (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Draft ECERA ECERA Establishment No agreement or Establishment agreement Agreement and institution in place for Agreement and Articles establishing a regional Value Articles of regulation of the of Incorporation regulatory advisory Incorporation electricity sector approved and signed. body is prepared for approved and signed. approval Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624500 ►Agreement signed by Participating Countries establishing the ECERA through Articles of Association/Incorporation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/13/2018 Page 3 of 6 The World Bank Implementation Status & Results Report Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) Agreements approved ECERA Agreements ECERA agreement Value No ECERA agreement and signed. April 25, approved and signed. signed. 2017. April 25, 2017. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624529 ►Board of Directors appointed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Board of Directors ECERA Board of Board of Directors Value No Board of Directors. appointed. Directors appointed. appointed. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624528 ►Full complement of staff for the ECERA hired (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Hiring of ECERA Project Coordinator, Staff for ECERA has Executive Assistant, been selected, and Legal Expert are negotiations have been in progress completed, and final Value No staff for the ECERA (negotiations Staff hired. discussions are completed and underway to formalize awaiting signing of appointment of ECERA contract). No follow up project coordinator. on hiring of any other staff. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624527 ►Amendments to domestic legislation to operationalize the ECERA at a national level prepared, for review by the respective Attorneys General (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Legislation approved Legislation approved and Legislation No legislative basis to and published in published in gazette by operationalizing Value operationalize ECERA at gazette by legislature legislature in both ECERA adopted in the national level in both participating participating countries. member countries countries. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624530 ►Self Financing Mechanism for the ECERA approved and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Self financing report Self financing report Self financing prepared and shared Value None prepared and shared with mechanism with Participating Participating Countries. operational Countries. Date 30-Jun-2011 20-Jul-2018 20-Jul-2018 30-Nov-2018 Component 2 - Developing a Regional Licensing Framework for Electricity Sector Market Participants IN00624532 ►ECERA provides guidance and recommendations on tariff design to the national regulatory authorities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/13/2018 Page 4 of 6 The World Bank Implementation Status & Results Report Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) Draft tariff rules ECERA preparing to Hiring of ECERA designed and Value None provide guidance to the project coordinator in guidance provided by national regulators. progress. ECERA to national regulatory authorities. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 IN00624531 ►Licensing rules enabling new investments in electricity generation designed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Independent Power Draft licensing rules No follow up since Licensing rules Producers (IPPs) and drafted and reviewed by licensing rules drafted permitting IPPs and Value Distributed Generation both participating and reviewed by both distributed generation (DG) not permitted. countries. participating countries. established. Date 30-Jun-2011 20-Jul-2018 17-Aug-2018 30-Nov-2018 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101414 IDA-49350 Effective USD 2.80 2.80 0.00 1.75 0.81 68% P101414 IDA-49360 Effective USD 2.80 2.80 0.00 1.26 1.32 49% P101414 TF-16770 Closed USD 0.30 0.17 0.13 0.17 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P101414 IDA-49350 Effective 16-Jun-2011 23-Sep-2011 21-Jun-2012 31-Dec-2016 30-Nov-2018 P101414 IDA-49360 Effective 16-Jun-2011 23-Sep-2011 21-Jun-2012 31-Dec-2016 30-Nov-2018 P101414 TF-16770 Closed 17-Oct-2013 05-Nov-2013 05-Nov-2013 31-Aug-2014 31-Aug-2015 Cumulative Disbursements 9/13/2018 Page 5 of 6 The World Bank Implementation Status & Results Report Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) Restructuring History Level 2 Approved on 24-Jun-2016 Related Project(s) There are no related projects. 9/13/2018 Page 6 of 6