The World Bank Report No: ISR10551 Implementation Status & Results OECS Countries Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414) Public Disclosure Copy Operation Name: Eastern Caribbean Energy Regulatory Authority (ECERA) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 30-Oct-2013 (P101414) Country: OECS Countries Approval FY: 2011 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Adaptable Program Loan Implementing Agency(ies): OECS Secretariat Key Dates Board Approval Date 16-Jun-2011 Original Closing Date 31-Dec-2016 Planned Mid Term Review Date 09-Jun-2014 Last Archived ISR Date 16-Dec-2012 Effectiveness Date 21-Jun-2012 Revised Closing Date 31-Dec-2016 Actual Mid Term Review Date 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 sector inParticipating Countries by supporting the establishment of the ECERA. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Setting up the ECERA 2.61 Operationalizing ECERA 2.99 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 Substantial Substantial Implementation Status Overview The Project was approved by the Board on June 16, 2011 and became effective on June 21, 2012. Since effectiveness, OECS Secretariat completed the hiring of the staff for the Project Implementation Unit and the Regional Energy Committee (governing body) of the ECERA project has met 3 times, the last being May 7, 2013. In addition to Grenada and St Lucia, the following countries attended as observers: Antigua and Barbuda, St Kitts, Nevis, and St Vincent and the Grenadines. CARILEC and ECTEL also attended the meeting as observers. Consultancies for preparing the key design features of ECERA were bid out and evaluation process was completed in September 2013. Page 1 of 5 The World Bank Report No: ISR10551 While good progress has been made, it should be noted that (1) the delay in project effectiveness creates pressure to complete activities designed for a 5 year period within a 4 year period and (2) the success of ECERA will depend on additional countries joining the ECERA process. Grant resources (US$1.5 million) from SIDS DOCK (managed by ESMAP in the World Bank) has been approved to promote ECERA to all eligible OECS countries. Public Disclosure Copy Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Entry into force of the ECERA as theregulator Text Value No regional regulation or PIU issed RfP, evaluated bids ECERA Treaty prepared and of Participating Countries electricity markets, regulator for the electricty and is in the process of ratified by member states and materialized by ratification in Participating sector awading consuting contracts countries of theECERA Treaty (corresponding to winning bidders to Part A). Date 30-Jun-2011 14-Oct-2013 18-Aug-2014 Comments See the detailed description of the First Meeting of the REC. Adoption of new licensing recommendations by Text Value Exisiting licences with Draft licencing agreements Provisions for incorporating the Council of Ministers (corresponding to Part inadequate provisions for being prepared as a part of best practices in the licencing B). promoting energy efficiiency, design consulting contract. process renewables, IPPs and other recent best practices Date 30-Jun-2011 14-Oct-2013 30-Jun-2015 Comments Combined Evaluation Report has been submitted tot he World Bank for approval. Design and adoption of cost reflective and Text Value Tariff setting process depends Being prepared as a part of Independent tariff setting performance based tariffs in Participating on countries and provisions in design consulting contract. process reflecting costs and Countries (corresponding to Part B). exisiting licences and policies performance Public Disclosure Copy adopted from time to time Date 30-Jun-2011 14-Oct-2013 30-Jun-2015 Comments Combined Evaluation Report has been submitted tot he World Bank for approval. Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR10551 Indicator Name Core Unit of Measure Baseline Current End Target Draft treaty establishing the ECERA prepared, Text Value No agreement or institution in ECERA treaty establishing a for approval of the Heads. place for regulation of the regional regulator is prepared Public Disclosure Copy electricity sector for approval Date 30-Jun-2011 30-Nov-2012 27-Jan-2014 Comments See the detailed description of the First Meeting of the REC. Treaty establishing the ECERA ratified, by Text Value No ECERA Treaty ECERA Treaty ratified Participating Countries. Date 30-Jun-2011 30-Nov-2012 18-Aug-2014 Comments Amendments to domestic legislation Text Value No legislative basis to Being prepared as a part of Legislation operationalizing tooperationalize the ECERA at a national level operationalize ECERA at the design consulting contract. ECERA adopted in member prepared, for review by the respective national level countries Attorneys General. Date 30-Jun-2011 14-Oct-2013 15-Dec-2014 Comments Combined Evaluation Report has been submitted tot he World Bank for approval. Full complement of staff for the ECERA hired. Text Value No staff for the ECERA Hiring for Phase I staff for Staff hired. ECERA completed Date 30-Jun-2011 07-Jan-2013 07-Jan-2013 Comments Commissioners appointed. Text Value No Commissioners. Commissioners to ECERA appointed. Date 30-Jun-2011 09-May-2012 30-May-2014 Comments Data on Financial Performance (as of 27-Aug-2013) Public Disclosure Copy Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P101414 IDA-49350 Effective 16-Jun-2011 23-Sep-2011 21-Jun-2012 31-Dec-2016 31-Dec-2016 P101414 IDA-49360 Effective 16-Jun-2011 23-Sep-2011 21-Jun-2012 31-Dec-2016 31-Dec-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101414 IDA-49350 Effective XDR 1.80 1.80 0.00 0.33 1.47 18.00 P101414 IDA-49360 Effective XDR 1.80 1.80 0.00 0.33 1.47 18.00 Page 3 of 5 The World Bank Report No: ISR10551 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Regional Energy Committee (REC) - the governing body for the ECERA process in phase 1 - had met on 4 occasions. Some of the key outcomes and decisions of include: Mandate. ECERA’s immediate scope and jurisdiction will focus on the core regulatory functions in the electricity sector. However, the aim is to leave the flexibility for the authority’s jurisdiction to be expanded in the future to cover broader energy sector regulatory functions. Decisions of the REC. It was also decided that the Summary of Key Decisions will be made publicly available (at the website of the OECS Secretariat till the ECERA website is established) so as to promote greater transparency in the discussions of the ECERA. Participation and role of Observers. It was agreed that non-Participating OECS Member States will be invited to participate as Observers at REC meetings along with CARILEC and ECTEL. In addition to the membership of Grenada and St Lucia, Antigua and Barbuda, St Kitts, Nevis, and St Vincent and the Grenadines have participated the REC meetings as observers. Since the participation of these observers was important to ensure the wider participation in the ECERA, the REC requested World Bank to meet the cost of these Public Disclosure Copy Observers though the SIDS DOCK grant. Other stakeholders should be invited to participate in REC meetings at their own cost. Use of Project Resources. The PMU was given the mandate use the project resources to proceed with the following initial set of core activities for which terms of reference will be prepared: (i) Design Self Financing Mechanism for ECERA and Design Tariff Setting Mechanism; (ii) Options and parameters for ECERA Treaty (including regulatory mechanism, structure, jurisdiction and scope) and draft treaty; and (iii) Review Participating Countries Electricity Supply Acts and the entire existing legislative framework to identify conflicts and make modifications thereto or draft new laws where relevant. Use of grant resources. The REC agreed with the World Bank’s proposal to use the SIDS DOCK resources allocated for the ECERA project in consultation with and based on the endorsement of the REC. In addition to the REC endorsing the use of SIDS DOCK grant for funding the participation of OECS Observers, the REC endorsed the World Bank proposal to prepare terms of reference for the following policy work through SIDS DOCK: a. Grid Feed-in Mechanisms for promoting renewable energy, including Renewable Energy Portfolio Standards and Feed-in Tariff across technologies for the Eastern Caribbean; Page 4 of 5 The World Bank Report No: ISR10551 b. Operating and Technical Standards and Grid Code for RE Independent Power Producers to access the grid; and c. Model Licensing Agreement and/or Power Purchase Agreements for geothermal energy for the Eastern Caribbean. Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Projects There are no related projects. 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