The World Bank Report No: ISR1570 Implementation Status & Results Honduras Public Disclosure Copy HN Rural Infrastructure Project (P086775) Operation Name: HN Rural Infrastructure Project (P086775) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Last Modified Date: 02-Nov-2010 Country: Honduras Approval FY: 2006 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Finance Secretariat (SEFIN), Fondo Hondureno de Inversion Social, empresa nacional de energia electrica Key Dates Board Approval Date 07-Jul-2005 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date 30-Jun-2008 Last Archived ISR Date 15-Jun-2010 Effectiveness Date 04-Aug-2006 Revised Closing Date 30-Jun-2012 Actual Mid Term Review Date 22-Sep-2008 Project Development Objectives HN Rural Infrastructure Project (P086775) Project Development Objective (from Project Appraisal Document) The project development objectives are (i) to improve access, quality and sustainability of infrastructure services (roads, water & sanitation, and electricity) for the rural poor in Honduras; and (ii) to develop capacities and enabling env ironment for locally-driven service provision and planning. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Rural Electrification Project (P090113) Global Environmental Objective (from Project Appraisal Document) The GEF project development objectives are: (i) improving access, quality and sustainability of electricity services through the dev elopment of offgrid electri fication model projects, and (ii) developing capacities and enabling environmen t for offgrid electrifica tion in a decentralized setting. The project's global environmental objective is to achieve greenhouse gas (GHG)reductions thro ugh t he reduction of policy, informational, financing and institutional capacity barr iers that currently hinder renewable energy tec Public Disclosure Copy hnology (RET) dissemination and market development in Honduras Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Page 1 of 12 The World Bank Report No: ISR1570 Component(s) Component Name Component Cost Public Disclosure Copy Participatory local planning 1.30 Infrastructure Service Delivery 40.20 Local Capacity Building and Policy Development TA 3.50 Project management, monitoring and evaluation 2.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview With the recently agreed extension of the closing date to June 30, 2012, the project is in a good position to be able to achieve its development objectives. All integrated rural infrastructure investment plans are either approved and/or under execution. There are no specific technical concerns in any of the sectors - roads, water and sanitation and energy. The main challenges looking ahead are: increasing the rate of commitment of remaining funds and increasing the rate of disbursement of the IDA credit and the GEF grant; and giving more attention to the actions to address the second development objective concerning the capacity of locally-driven planning and implementation of infrastructure services. In this regard, recent progress has been made with the creation of the first micro-enterprises for road maintenance and activating the plans to construct two micro-hydro projects that will be community managed once in operation. Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value % population in target areas with access to water and sanitation, 62 Direct beneficiaries to date: 7,416 67 provided with quality and sustainability (Cra and Chorti). from new water systems, 17,964 Date Date from rehabilitated systems and 07-Jul-2005 11,545 from new or improved 30-Jun-2012 Type Unit of Measure Comment latrines Comment Custom Indicator Text Date 21-Oct-2010 Comment The percentage will be measured at the end of the Project (as part of the impact evaluation) for all six participating mancomunidades. The numbers are for the six mancomunidades, not only for CRA and Chorti Indicator Baseline Current End Target Indicator Name Value Value Value % population in target areas with access to electricity service, provided 33 Beneficiaries from grid extension 38 with adequate quality and sustainability (Cra and Chorti). completed to date are 30,400. Date Date About 7,362 beneficiaries from 07-Jul-2005 solar home systems. The numbers 30-Jun-2012 Type Unit of Measure Comment are for the six mancomunidades, Comment Custom Indicator Text not only for CRA and Chorti. Date 21-Oct-2010 Comment Public Disclosure Copy The percentage will be measured at the end of the Project (as part of the impact evaluation) for all six participating mancomunidades. The numbers are for the six mancomunidades, not only for CRA and Chorti. Page 3 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Population with improved all year road access in target areas (Cra and 0 60,995 estimated direct 200,000 Chorti). beneficiaries of the rural road Date Date improvements carried out to date 07-Jul-2005 as well as 27,750 from the 30-Jun-2012 Type Unit of Measure Comment kilometer municipal program Comment Custom Indicator Text Date 21-Oct-2010 Comment The numbers are for the six mancomunidades, not only for CRA and Chorti. Indicator Baseline Current End Target Indicator Name Value Value Value Number of UTIs operating with trained technical staff and adequate 0 6 UTIs have been created and put 6 budget. into operation with trained staff in Date Date FM procurement and technical 07-Jul-2005 supervision. However 2, Mamno 30-Jun-2012 Type Unit of Measure Comment and Mambocaure, lost staff after Comment Custom Indicator Text the change in administration so the project is helping them get back on track Date 21-Oct-2010 Comment Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Value of contracts successfully procured by UTIs (cumulative) 0 Total is $9.7 million US$10 million (Cra and Chorti) Date Date Date 07-Jul-2005 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text The numbers are for the six Targets to be revised after mancomunidades, not only for amendment CRA and Chorti. Page 4 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Share of rural population with access to an all-season road 75.00 Date Date Date 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Core Indicator Percentage This will be measured at the end of the Project (as part of the impact evaluation) for all six participating mancomunidades. Indicator Baseline Current End Target Indicator Name Value Value Value Number of rural people with access to an all-season road 0.00 60995.00 200000.00 Type Unit of Measure Sub-Type Core Indicator Number Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value Number of people in rural areas provided with access to Improved 0.00 25380.00 60000.00 Water Sources under the project Date Date Date 01-Aug-2006 21-Oct-2010 30-Jun-2010 Type Unit of Measure Comment Comment Comment Core Indicator Number This will be measured at the end of the Project (as part of the impact Public Disclosure Copy evaluation) for all six participating mancomunidades. Global Environmental Objective Indicators Page 5 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Tons CO2 (greenhouse gas) emissions avoided 30,100 achieved to date, around 160,000 (revised) Date 35% of the expected final reduction Date to be achieved by the project 07-Jul-2005 30-Jun-2012 Date Type Unit of Measure Comment Comment 21-Oct-2010 Custom Indicator Text 84,000 is now the revised Comment expectation due to having 2 rather Note: The original calculations than 8 micro-hydros completed were incorrect due to the under the project inadvertent double conversion of C to CO2 in the PV calculations. Target has to be revised - should have been 160,000 instead of 425,000 tons of CO2 over 20 years measured as follows: SHS - over kerosene lighting; institutional systems - over 25% kerosene lighting, 75% small diesel engines; micro-hydro - over small diesel engines. Dueto a reduction of the number of micro-hydros from 8 to 2 within the project, the new target reduction should probably be 84,000 tCO2over 20 years. Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Public Disclosure Copy Number of integrated mancomunal infrastructure plans completed 0 6 6 Date Date Date 07-Jul-2005 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text Final plan for Mambocaure completed in July 2010 Page 6 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Planned infrastructure works completed 0 Rural roads - 157 km; kilometer 400 km of roads rehabilitated with Date municipal - 6.6 km, water adequate maintenance connections - 4230, latrines -1941, established; 6,800 new or 07-Jul-2005 grid extension -5596, solar PV - improved water and sanitation Type Unit of Measure Comment 1264 connections; 4,500 new electricity Custom Indicator Text Date connections (Cra and Chorti) 21-Oct-2012 Date Comment 30-Jun-2012 Comment The targets have to be revised as mentioned for the 6 mancomunidades; they will be updated in a next ISR after the amendment i processed and approved. Indicator Baseline Current End Target Indicator Name Value Value Value Implementation of new sustainable service delivery models in selected 0 (i) at least one micro-enterprise per (i) 20 (ii) 2 sectors: (i) rural road micro-enterprises; (ii) village micro-grids mancomunidad is planned to be Date Date created 07-Jul-2005 (ii) establishment of two 30-Jun-2012 Type Unit of Measure Comment cooperatives to operate Comment Custom Indicator Text themicrohydroplants is under way Date 21-Oct-2010 Comment Public Disclosure Copy Page 7 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value % of participating communities and individual households trained in 0 Around 5,000 people trained for 100 (Cra and Chorti) operations and maintenance. PVs, 196 members of water Date Date boards, and 22 people for routine 07-Jul-2005 road maintenance. All 6 30-Jun-2012 Type Unit of Measure Comment mancomunidades have been Comment Custom Indicator Text covered by this training. Date 21-Oct-2010 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Monitoring and Evaluation Systems established. 0 Implementation is now underway Yes Date Date Date 07-Jul-2005 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Monitoring and Evaluation Systems established. 0 Implementation is now underway Yes Date Date Date 07-Jul-2005 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Public Disclosure Copy Custom Indicator Text Indicator Baseline Current End Target Indicator Name Value Value Value Roads rehabilitated, Rural 0.00 157.43 400.00 Date Date Date 01-Aug-2006 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Core Indicator Kilometers Targets to be revised after amendment Page 8 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value New piped household water connections that are resulting from the 0.00 1236.00 6000.00 project intervention Date Date Date 01-Aug-2006 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Core Indicator Number Indicator Baseline Current End Target Indicator Name Value Value Value Volume of Bank Support: Lines of Credit - Microfinance 175000.00 1500000.00 Date Date Date 21-Jul-2009 30-Jun-2010 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Data from retrofit exercise Indicator Baseline Current End Target Indicator Name Value Value Value Volume of Bank Support: Institutional Development - Microfinance 50000.00 300000.00 Date Date Date 21-Jul-2009 30-Jun-2010 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Data from retrofit exercise Indicator Baseline Current End Target Indicator Name Value Value Value Outstanding Microfinance Loan Portfolio 93000.00 Public Disclosure Copy Date Date Date 21-Jul-2009 30-Jun-2010 Type Unit of Measure Comment Comment Comment Core Indicator Amount(USD) Data from retrofit exercise Target not available Page 9 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value No of active loan accounts -Microfinance 178.00 Date Date Date 21-Jul-2009 30-Jun-2010 Type Unit of Measure Comment Comment Comment Core Indicator Number Data from retrofit exercise No target available Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value % active loans to women - Microfinance 49.00 Public Disclosure Copy Date Date Date 21-Jul-2009 30-Jun-2010 Type Unit of Measure Comment Comment Comment Core Indicator Percentage Data from retrofit exercise target not available Page 10 of 12 The World Bank Report No: ISR1570 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of project-supported institutions that are reporting on this indicator Type Unit of Measure Sub-Type Core Indicator Percentage Supplemental Indicator Baseline Current End Target Indicator Name Value Value Value Number of new household electricity connections 0.00 5956.00 4500.00 Date Date Date 06-Jun-2005 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Custom Indicator Number 5956 grid extension, 1260 solar Targets to be revised to cover all 6 PV, 13 solar community mancomunidades Indicator Baseline Current End Target Indicator Name Value Value Value Piped household water connections that are benefiting from 0.00 2990.00 6000.00 rehabilitation works undertaken by the project Date Date Date 01-Aug-2006 21-Oct-2010 30-Jun-2012 Type Unit of Measure Comment Comment Comment Core Indicator Number Targets to be revised to cover all 6 mancomunidades Data on Financial Performance (as of 30-Sep-2010) Public Disclosure Copy Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P086775 IDA-40990 Effective 07-Jul-2005 16-Nov-2005 04-Aug-2006 30-Jun-2012 P090113 TF-55968 Effective 21-Mar-2006 21-Mar-2006 04-Aug-2006 30-Jun-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P086775 IDA-40990 Effective USD 47.00 47.00 0.00 19.32 30.34 41.00 P090113 TF-55968 Effective USD 2.35 2.35 0.00 0.75 1.60 32.00 Page 11 of 12 The World Bank Report No: ISR1570 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Government has requested an amendment to both the IDA credit and GEF grant agreements. This will provide for measures to further improve project implementation - such as a reduction in the minimum counterpart financing requirements as well as a revision of project outcome indictaors and targets and a reallocation of credit and grant proceeds in line with expected financing requirements of the project. Restructuring History Level two Approved on 08-Apr-2010, Level two Approved on 29-Jun-2010 Related Projects Public Disclosure Copy P090113-Rural Electrification Project Page 12 of 12