Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Power Sector Efficiency Enhancement Project (PROMEF) (P104034) LATIN AMERICA AND CARIBBEAN | Honduras | Energy and Mining Global Practice | IBRD/IDA | Specific Investment Loan | FY 2009 | Seq No: 12 | ARCHIVED on 18-Feb-2015 | ISR17052 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:22-Jan-2009 Effectiveness Date:29-Jun-2010 Planned Mid Term Review Date:20-May-2013 Actual Mid-Term Review Date:05-Jun-2013 Original Closing Date:31-Dec-2013 Revised Closing Date:30-Jun-2015 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 Objective? No PHRPDODEL Components Name Improving ENEE's commercial and corporate resource management:(Cost $18.50 M) Rehabilitating distribution networks:(Cost $14.60 M) Strengthening ENEE's institutional capacity and corporate governance:(Cost $6.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  High 2/18/2015 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Implementation Status and Key Decisions Relevant investments and actions, i.e. the approval of the new organizational structure of ENEE by the Board of Directors and the final deployment of the IRM system, have been recently implemented. These actions and investments represent a profound organizational change in the institution and thus require time to translate into measurable outcomes. Thus, It is highly unlikely that the Project may capture these outcomes by Project completion in June 2015. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  High 2/18/2015 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  High Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Substantial Fiduciary  --  --  Moderate Environment and Social  --  --  Substantial Stakeholders  --  --  Moderate Other  --  --  -- Overall  --  --  High Results Project Development Objective Indicators PHINDPDOTBL  Electricity losses per year in the project area (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 31.00 31.00 15.00 Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments Starting January 2015, the new MIS will allow more precise estimation of loses. Sub-indicators were automatically added when the indicator "Electricity losses per year in the project area" was converted to a "core" indicator in June 2014. This generated the indicators "net injected generation," and divided the losses into technical and non-technical. For technical losses the baseline for 2010 has been estimated as 15%, consistent with estimates by ENEE. ENEE cannot measure technical losses precisely, and therefore can only estimate the percentage of total losses attributable to technical/non-technical losses. An end target of 10% has been used that is consistent with the PAD. For non-technical losses the baseline for 2010 has been deduced as 10% (25%-15%). The end target is 5%. PHINDPDOTBL  Total net injected generation (Megawatt hour(MWh), Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 6692855.00 0.00 8920798.00 0.00 Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 2/18/2015 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) PHINDPDOTBL  Electricity losses per year in the project area- Technical (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 0.00 15.00 10.00 Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 PHINDPDOTBL  Electricity losses per year in the project area- Non-Technical (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 0.00 16.00 5.00 Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 PHINDPDOTBL  Average interruption frequency per year in the project area (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 0.00 20.22 0.00 Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 -- Comments ENEE’s team estimated the current value for this indicator, based on available information. Once the IMS is fully installed ENEE will be capable to periodically measure this indicator accurately. Per the PAD and ISRs, the end target still needs to be established. Sub-indicator "customers served in the project are" was automatically added when the indicator "average interruption frequency" was converted to a "core" indicator in June. The PMU has not provided data yet on number of customers, since they were not tracking this data before. That data will be collected for the next ISR. The "number of customers" is defined as the number of connections in Honduras. Data obtained from report prepared for the World Bank. End target will be defined in the next supervision mission. PHINDPDOTBL  Customers served in the project area (Number, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 12426250.00 0.00 0.00 0.00 2/18/2015 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 -- PHINDPDOTBL  Increase in the Cash Recovery Index (CRI) in each of the three regional distribution sub-networks (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 68% 0 62% 78% Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments ENEE’s team estimated the current value for this indicator, based on available information. Once the IMS is fully installed ENEE will be capable to periodically measure this indicator accurately. 2010 is taken as the baseline consistent with other indicators. PHINDPDOTBL  Annual decrease in system average interruption duration index (SAIDI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvement Value 10 0 14.2 hrs. on an annual basis Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments 10 hours is used as the baseline for 2010, consistent with other indicators. ENEE’s team estimated the current value for this indicator, based on available information. Once the IMS is fully installed ENEE will be capable to periodically measure this indicator accurately. PHINDPDOTBL  Annual decrease in system average interruption frequency index (SAIFI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvement Value 25 interruptions NA NA on an annual basis 2/18/2015 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Date 31-Dec-2010 30-Jun-2014 30-Jun-2014 30-Jun-2015 Comments Current estimate based on 2 measurements. Average decrease in four years is (25-20.2)/4 = 1.2% decrease per year. Once the IMS is fully installed ENEE will be able to measure this indicator. Overall Comments Once the IMS is fully installed ENEE will be able to measure this indicator. Intermediate Results Indicators PHINDIRITBL  Outcome 1: Improve ENEE's commercial management.Indicator: Number of AMRs installed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 5,000 3840 5,000 Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments ENEE confirmed during the supervision mission that the AMR installation goal has not been met yet. A work plan has been settled in order to reach the 5,000 AMR installation goal by the end of December 2014. PHINDIRITBL  Outcome 1: Improve ENEE's commercial management.Indicator: ERP, IMS (commercial, incident, resource management) in place (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Systems in place and Value 0 1/3 systems in place; 1/3 systems in place satisfactorily working Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments A partial installation, restricted to Tegucigalpa y Comayaguela, of the Commercial/Incident Management System has been performed. ENEE reports successful results from this partial installation. Deployment at national level is planned for October 2014. 2/18/2015 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) PHINDIRITBL  Outcome 1: Improve ENEE's commercial management.Indicator: Number of customers in CMS and IRMS database (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 40% of total Value 0 0 0 customers Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments Will be reported once the IMS is fully installed. PHINDIRITBL  Outcome 1: Improve ENEE's commercial management.Indicator: Number of ENEE employees trained to use the CMS, IRMS, and CRMIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target CMS: 50 or as needed IRMS: 10 or as Value 0 163 685 needed CRMIS: 20 or as needed Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments commercial = 400. Incidents = 35. SAP = 250 PHINDIRITBL  Outcome 1: Improve ENEE's commercial management.Indicator: Number of customer claims related to billing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target improvement in the average semiannual Value 85 0 -- value compared to the previous six months. Date 31-Dec-2010 30-Jun-2014 19-Nov-2014 30-Jun-2015 Comments ENEE is going to estimate the value for this indicator with the current data. A more accurately measure of this indicator will only be possible after the CMS and the IRMS are in place. 2/18/2015 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) PHINDIRITBL  Outcome 2: Rehabilitate distribution networks.Indicator: Number of transformers replaced (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 1000 1000 1000 Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 PHINDIRITBL  Outcome 2: Rehabilitate distribution networks.Indicator: Number of PCB-containing equipment replaced (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2008:0 350 350 350 Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 PHINDIRITBL  Outcome 2: Rehabilitate distribution networks.Indicator: Number of heavy vehicles acquired (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 31 31 30 Date 31-Dec-2008 30-Jun-2014 19-Nov-2014 30-Jun-2015 2/18/2015 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) PHINDIRITBL  Outcome 3: Strengthen ENEE's institutional capacityIndicator: Setup and operation of separate business units (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Separate business units being developed Separate Separate business units do Value under current in progress business units not exist consulting contract with operational HQ solutions. Date 31-Dec-2008 30-Jun-2014 21-Nov-2014 30-Jun-2015 Comments Separate business units were approved by ENEE’s board on October 27, 2014. PHINDIRITBL  Outcome 3: Strengthen ENEE's institutional capacityIndicator: Setup and operation of the Distribution and Commercialization unit (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Setup of the Distribution and Distribution and distribution and Commercializat Value Commercialization Unit commercialization unit In progress ion Unit does not exist. being considered under operational HQ solutions contract. Date 31-Dec-2008 30-Jun-2014 21-Nov-2014 30-Jun-2015 Comments Separate business units were approved by ENEE’s board on October 27, 2014. The Comercial & Distribution Staff, who were selected based on a competitive process, are in charge of the Unit for a trial period until December 31, 2014. A set of desired results has also been agreed between the new C&D staff and the Board, in order to have a performance evaluation. Based on performance evaluation, the Board will decide whether to approve the appointments for the staff on a more permanent basis. PHINDIRITBL  Outcome 3: Strengthen ENEE's institutional capacityIndicator: Competitive selection of key personnel in the distribution and commercialization unit (3 managers, 10 key staff) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Key staff No key staff in distribution Value 0 in progress selected and in and commercialization unit place Date 31-Dec-2008 30-Jun-2014 21-Nov-2014 30-Jun-2015 Comments Management personnel for the C&D unit have been competitively selected (3 managers and 14 key staff). A new competitive process is running for intermediary positions (12 key staff). 2/18/2015 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) PHINDIRITBL  Outcome 3: Strengthen ENEE's institutional capacityConsumer satisfaction and perception (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Improvement in Rate of acceptance of the average each group (e.g. No survey has been No survey has been annual value Value consumers, NGOs, civil performed. performed. compared to society organizati on) at the previous time of first survey. year Date 31-Dec-2012 30-Jun-2014 21-Nov-2014 30-Jun-2015 Comments A proposal on how to measure this indicator is expected to be sent to the Bank no later than November 15, 2014. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P104034 IDA-45360 Effective XDR 20.20 18.68 1.52 16.82 1.86 90% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P104034 IDA-45360 Effective 22-Jan-2009 27-Feb-2009 29-Jun-2010 31-Dec-2013 30-Jun-2015 Cumulative Disbursements 2/18/2015 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Power Sector Efficiency Enhancement Project (PROMEF) (P104034) Restructuring History Level Approved on 17-Jun-2010 ,Level Approved on 04-Oct-2011 ,Level 2 Approved on 19-Dec-2013 Related Project(s) There are no related projects. 2/18/2015 Page 11 of 11 Public Disclosure Copy