The World Bank Report No: ISR3532 Implementation Status & Results Mexico Public Disclosure Copy Large-scale Renewable Energy Development Project (Phase 1 = $25M; Phase 2 = $45M) (P077717) Operation Name: Large-scale Renewable Energy Development Project (Phase Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Last Modified Date: 16-Jun-2011 1 = $25M; Phase 2 = $45M) (P077717) Country: Mexico Approval FY: 2006 Product Line: Global Environment Project Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): SENER, Comision Federal de Electricidad Key Dates Board Approval Date 29-Jun-2006 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date Last Archived ISR Date 28-Dec-2010 Effectiveness Date 18-Apr-2007 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The global objective of the project is to reduce greenhouse gas emissions (GHGs) and remove barriers to the development of renewable energy technologies and markets, per the Global Environment Facility Operation Progam 6. To assist Mexico in developing initial experience in commercially-based grid-connected renewable energy applications by supporting construction of an approximately 101 MW IPP wind fram, while building institutional capacity to value, acquire, and manage such resources on a replicable basis. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Financial Mechanism 20.40 Technical Assistance 3.90 Public Disclosure Copy Project Management 0.70 Overall Ratings Previous Rating Current Rating Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Project implementation is progressing. The construction of the plant started in March 2010, and the plant is expected to be fully in operation in April 2012. Most technical assistance activities are yet to be implemented. Page 1 of 10 The World Bank Report No: ISR3532 Results Public Disclosure Copy Global Environmental Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Increase electricity supply to national system from renewable energy 7.36 367.9 GWh annually (257.5 min) sources, over baseline. (GWh/yr) Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text The plant is not yet in operation. Indicator Baseline Current End Target Indicator Name Value Value Value Increase total installed renewable capacity, over baseline (MW). 2 wind farms 101 MW (expected operations) Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text The construction of the plant started in March 2010. CFE expects completion by the end of April 2012. Indicator Baseline Current End Target Indicator Name Value Value Value Emisions reduced (tons/year), over baseline (CO2, NOx, SOx, and 0 247,000 tons per year of operation particulates). Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Public Disclosure Copy Custom Indicator Text The construction of the plant started in March 2010. CFE expects completion by the end of April 2012. Page 2 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Barrier Removal results described below under PDO. Baseline values described in PAD Barriers removed Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text TA activities to support SENER were delayed by difficulties in accessing the corresponding funds. Progress is expected in the next six months. Indicator Baseline Current End Target Indicator Name Value Value Value Established CFE system short-run marginal cost-based Reference None Partially achieved System established Price combined with agreed maximum U.S. 1.1 cent GEF tariff support Date Date Date sufficient to attract bids, investment, construction and operation 18-Apr-2007 14-May-2010 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text 2 bids received and one contract for 100MW awarded Indicator Baseline Current End Target Indicator Name Value Value Value Subsequent POISE include plans for additional wind IPP procurement None Achieved POISE includes > 1 at higher reference price and/or lower incentive support level (subject Date Date Date to availability of subsidy funds - GEF or other). 18-Apr-2007 10-Nov-2009 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text POSE (2007-2016) includes 4 wind Public Disclosure Copy plants: Oaxaca I, II, III, IV Intermediate Results Indicators Page 3 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Functioning mechanism for the auctioning of tariff subsidy support None Partially achieved Mechanism is in place and through competitive bidding established, with incremental tariffsupport functioning Date Date provided by GEF. 18-Apr-2007 22-Jun-2009 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text 1 contract awarded for 100 MW Comment through competitive bidding. Tariff support to be provided once wind farm starts functioning. Indicator Baseline Current End Target Indicator Name Value Value Value Operational Manual for the auctioning mechanism finalized with CFE None Operational manual adopted sign-off, and adopted by CFE. Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text Bank team will discuss the relevance of such a manual, as a new renewable energy law is being implemented. Indicator Baseline Current End Target Indicator Name Value Value Value Regional Environmental Assessment is completed and made available None Achieved. Regional Environmental for the La Venta III bidding package. Assessment completed Date Date 18-Apr-2007 22-Jun-2009 Date Type Unit of Measure Comment Comment 30-Jun-2014 Public Disclosure Copy Custom Indicator Text The Manifestacion de Impacto Comment Ambiental, which includes an environmental analysis of the area, was included in the bidding documents. Page 4 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value CFE base solicitation allowing for locations other than the currently None Achieved. Authorization to change location identified for La Venta III, including those that would require a change included in the bidding documents. Date Date in transmission lines. 18-Apr-2007 22-Jun-2009 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text Comment Indicator Baseline Current End Target Indicator Name Value Value Value Number of qualified bids received from tender. None Partially achieved At least three qualified bids Date Date received 18-Apr-2007 22-Jun-2009 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text 2 technical bids and 1 financial bid Comment Indicator Baseline Current End Target Indicator Name Value Value Value IPP solicitation for at least 70 MW of wind power. None Achieved IPP solicitation for at least 70 MW Date Date of wind power. 18-Apr-2007 22-Jun-2009 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text IPP wind contract for 100 MW Comment awarded Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Only those bids proposing development in sites identified as None Achieved Only those bids proposing environmentally suitable for development are accepted as eligible. development in sites identified as Date Date environmentally suitable for 18-Apr-2007 22-Jun-2009 development are accepted as Type Unit of Measure Comment Comment eligible Custom Indicator Text Environmental authorization Date obtained by CFE for the site. If a 30-Jun-2014 different site were chosen, bidder would have been responsible for Comment obtaining the authorization. Page 5 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Co-financing provided by private entities and export credit agencies by None Achieved Co-financing provided by private way of capital investments. entities and export credit agencies Date Date by way of capital investments. 18-Apr-2007 22-Jun-2009 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text Iberdrola a private firm was awarded the contract Comment Indicator Baseline Current End Target Indicator Name Value Value Value Mechanism for payments to ejidos, indigenous communities, and small None Achieved Mechanism for payments to ejidos, landowners, with established process through which landowners or indigenous communities, and small Date Date ejidos can verify revenue and requisite payments. landowners, with established 18-Apr-2007 08-Nov-2010 process through which landowners Type Unit of Measure Comment Comment or ejidos can verify revenue and Custom Indicator Text Mechanism for payments put into requisite payments. place and agreements signed Date 30-Jun-2014 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Funds disbursed to ejidos, indigenous communities, and small None Ongoing Funds disbursed to ejidos, landowners. indigenous communities, and small Date Date landowners as indicated in 18-Apr-2007 26-May-2011 agreements. Public Disclosure Copy Type Unit of Measure Comment Comment Date Custom Indicator Text Funds were disbursed in 30-Jun-2014 December 2010. Comment Page 6 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Significant avian/bat mortality is avoided. None Avian/bat mortality is within Date Date acceptable ranges. 18-Apr-2007 26-May-2011 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text Plant is not operational yet. Bird Comment monitoring is a requirement in the environmental license. Indicator Baseline Current End Target Indicator Name Value Value Value CFE purchase tariff proposed for Phase II which reflects SRMC plus None CFE purchase tariff proposed for RE capacity value and energy portfolio diversification value. Phase II which reflects SRMC plus Date Date RE capacity value and energy 18-Apr-2007 26-May-2011 portfolio diversification value Type Unit of Measure Comment Comment Date Custom Indicator Text Phase 1 still under implementation. 30-Jun-2014 Phase II purchase tariff will be proposed once corresponding TA Comment activities - which are delayed-are completed. Indicator Baseline Current End Target Indicator Name Value Value Value CFE purchase price tariff proposed for Phase II which requires reduced None CFE purchase price tariff proposed GEF subsidy from Phase I. for Phase II which requires Date Date reduced GEF subsidy from Phase 18-Apr-2007 26-May-2010 I. Type Unit of Measure Comment Comment Public Disclosure Copy Date Custom Indicator Text Phase 1 still under implementation. 30-Jun-2014 Phase II purchase tariff could be proposed once corresponding TA Comment activities are completed Page 7 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Least-cost methodology for calculation of renewable energy None Least-cost methodology for procurement reflecting System Marginal Cost developed. calculation of renewable energy Date Date procurement reflecting System 18-Apr-2007 26-May-2011 Marginal Cost developed. Type Unit of Measure Comment Comment Date Custom Indicator Text This activity was financed by an 30-Jun-2014 ESMAP study Comment Indicator Baseline Current End Target Indicator Name Value Value Value Planning and dispatch model installed and used in CFE to incorporate None Installed and used intermittent sources. Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text TA activities were delayed by the lack of coordination unit within SENER. Indicator Baseline Current End Target Indicator Name Value Value Value Strategic Environmental Assessment is developed and accepted as None Strategic Environmental basis permitting scale-up of wind energy in Oaxaca region. Assessment completed and Date Date disseminated 18-Apr-2007 26-May-2011 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text SENER and SEMARNAT Public Disclosure Copy organized a workshop in October Comment 2010. ToRs need to be validated by Sener, Semarnat and Sedesol. Page 8 of 10 The World Bank Report No: ISR3532 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Publishing of new intermittent energy connection contract by CRE None New intermittent energy connection including RE capacity recognition. contract including RE capacity Date Date recognition is published by CRE . 18-Apr-2007 26-May-2011 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text The construction of the plant started in March 2010 and the Comment plant is not yet in operation Indicator Baseline Current End Target Indicator Name Value Value Value Strengthening of SENER IPU business development services None UPI's business development addressing marketing, permitting issues, financing, facilitation, and services judged adequate Date Date business advisory services to sponsors of renewable energy projects 18-Apr-2007 08-Nov-2010 Date Type Unit of Measure Comment Comment 30-Jun-2014 Custom Indicator Text ToRs will be prepared once the Comment IPU is in place. However, issues with Sener's ability to access Grant funds has delayed the creationof the IPU. Indicator Baseline Current End Target Indicator Name Value Value Value Institutional capacity sufficient to issue and manage tenders for None Assessed as adequate additional wind farms/other RE resources. Date Date Date 18-Apr-2007 26-May-2011 30-Jun-2014 Type Unit of Measure Comment Comment Comment Public Disclosure Copy Custom Indicator Text Delayed - Coordinator of SENER support team to be hired as soon as Sener accesses Grant funds. Data on Financial Performance (as of 05-Aug-2010) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P077717 TF-56781 Effective 05-Oct-2006 05-Oct-2006 18-Apr-2007 30-Jun-2014 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 9 of 10 The World Bank Report No: ISR3532 P077717 TF-56781 Effective USD 25.00 25.00 0.00 0.08 24.92 0.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation N/A Restructuring History There has been no restructuring to date. Related Projects Public Disclosure Copy Page 10 of 10