The World Bank Report No: ISR5929 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: 7 Status: ARCHIVED Archive Date: 10-Dec-2011 (P104034) Country: Honduras Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Empresa Nacional de Energia Electrica (ENEE) Key Dates Board Approval Date 22-Jan-2009 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 22-Oct-2012 Last Archived ISR Date 10-Dec-2011 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 considerably in the last six months. One of the larger bidding processes, for the purchase of spare parts and materials, including transformers, was awarded in February. In addition, the project's two main process (i) the purchase and implementation of the Integrated Management System (IMS), which includes a Commercial Management System (CMS), a Corporate Resources Management System (CRMIS), and an Incidence Recording Management System (IRMS), and (ii) the purchase and installation of Advance Metering Infrastructure (AMI) are scheduled for award in June 2012. Although the current disbursement level is low, it is expected that it will peak up in the next few month, with estimated disbursements of US$14 million by December 2012. It is also expected that significant progress will be achieved in the next 12 months as it relates to Page 1 of 6 The World Bank Report No: ISR5929 compliance with the indicators and targets established in the project's results framework. Considerable progress has also been made in the environmental component of the project. ENEE has finalized the inventory of transformers in use with PCBs and the identification of potential sites for temporary storage of PCB-containing equipment. ENEE is also expected to finalize the inventory of transformers in disuse by September 2012. This work is being Public Disclosure Copy carried out in coordination with CESCCO-SERNA, who has the overall responsibility of the national plan to eliminate PCB-containing equipment by 2025, as required by the Stockholm Convention. 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 28-Mar-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. period prior to IRMS implementation Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 Comments The bidding processes for the activities that are expected to Public Disclosure Copy have an impact on this indicator are currently underway. 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 System (IRMS) in the whole company. Date 31-Dec-2012 28-Mar-2012 31-Dec-2013 Page 2 of 6 The World Bank Report No: ISR5929 Comments The bidding processes for the activities that are expected to have an impact on this indicator are currently Public Disclosure Copy underway. Electricity losses per year in project area (core Percentage Value 22.50 27.00 15.00 indicator) Date 31-Dec-2010 28-Mar-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 28-Mar-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 1,400 1,400 5,000 management.Indicator: Number of AMRs Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 installed Comments Baseline has been revised The contract for the purchase from 30,000 to 1,400 because of the automatic meters is only 1,400 AMRs have been scheduled for award in June installed so far for large 2012. consumers, who are the target of this component. 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 28-Mar-2012 31-Dec-2013 Comments The contract for the purchase Public Disclosure Copy and implementation of the three systems is scheduled to be awarded in June 2012. Outcome 1: Improve ENEE's commercial Text Value 2008:0 40% of total customers management.Indicator: Number of customers Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 in CMS and IRMS database Comments To be monitored only once the CMS and the IRMS are in place. Page 3 of 6 The World Bank Report No: ISR5929 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 Public Disclosure Copy Date 31-Dec-2008 28-Mar-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 28-Mar-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 Cumulative Yr 1:0 Yr 2:250 Yr Indicator: Number of transformers replaced 3 750 Yr 4:1000 Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 Comments 663 new transformers have been recently acquired under the project. It is expected that 250 units will be installed by the end of 2012. Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 Cumulative Yr1: 0 Yr2: 50 Indicator: Number of PCB-containing Yr3: 200 Yr4: 350 equipment replaced Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 Comments Process for the purchase of transformers soon to be launched. PCB-containing Public Disclosure Copy transformers will be replaced starting in January 2013. Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 Cumulative: Yr 1:5 Yr 2: 15 Yr Indicator: Number of heavy vehicles acquired 3: 25 Yr 4: 30 Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 Comments Bidding process for the purchase of 7 heavy vehicles currently underway. Page 4 of 6 The World Bank Report No: ISR5929 Outcome 3: Strengthen ENEE's institutional Text Value Separate business units do Separate business units capacityIndicator: Setup and operation of not exist operational separate business units Date 31-Dec-2008 28-Mar-2012 31-Dec-2013 Public Disclosure Copy 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 28-Mar-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 28-Mar-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 28-Mar-2012 31-Dec-2013 Comments Value will be defined when project activities start implementation on the ground. Data on Financial Performance (as of 08-Feb-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P104034 IDA-45360 Effective 22-Jan-2009 27-Feb-2009 29-Jun-2010 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P104034 IDA-45360 Effective XDR 20.20 20.20 0.00 0.74 19.46 4.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR5929 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