The World Bank Report No: ISR5153 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: 6 Status: ARCHIVED Archive Date: (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), Unidad Administradora de Proyectos (UAP) 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 08-Jun-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 Public Disclosure Copy Previous Rating Current Rating 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 been progressing since the project was declared effective in June 2010. The bidding documents for the two largest processes under the project are in the final revision stages prior to receiving NO from the Bank. It is expected that both processes will be launched before the end of 2011 and that implementation will start in the first half of 2012. These processes are: (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 Remote Metering System. Page 1 of 6 The World Bank Report No: ISR5153 ENEE is working with CESCCO-SERNA to finalize the definition of ENEE's Action Plan for Substitution and Management of Transformers with PCBs. In addition, processes are underway to (i) hire a communications specialist that can support ENEE to implement the communication, outreach and participation program defined under the project, and to (ii) hire a monitoring and evaluation specialist that will assist ENEE in the definition and implementation of performance indicators. 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 Increase in the Cash Recovery Index (CRI) in Text Value Year 2010 to be determined 8% improvement from each of the three regional distribution sub- by ENEE based upon 2008 baseline networks annual data. Date 31-Dec-2010 11-Oct-2011 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 11-Oct-2011 31-Dec-2013 Comments This system will be acquired through a competitive bidding process. The team is in the Public Disclosure Copy process of finalizing the bidding documents. 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-2008 11-Oct-2011 31-Dec-2013 Page 2 of 6 The World Bank Report No: ISR5153 Indicator Name Core Unit of Measure Baseline Current End Target Comments This system will be acquired through a competitive bidding Public Disclosure Copy process. The team in is the process of finalizing the bidding documents. Electricity losses per year in project area (core Percentage Value 22.50 15.00 indicator) Date 31-Dec-2010 11-Oct-2011 31-Dec-2013 Comments Value will be monitored once implementation of project activities starts. Average interruption frequency per year in the Number Value project area (core indicator) Date 20-Apr-2010 24-May-2011 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 30,000 30,000 58,600 management.Indicator: Number of AMRs installed Date 31-Dec-2008 11-Oct-2011 31-Dec-2013 Comments Automatic meters will be purchased through a competitive bidding process. The team is working on finalizing the bidding documents. Outcome 1: Improve ENEE's commercial Text Value Systems are not in place yet. Systems are not in place yet Systems in place and management.Indicator: CMS, IRMS and satisfactorily working CRMIS in place Public Disclosure Copy Date 31-Dec-2008 11-Oct-2011 31-Dec-2013 Comments These systems will be acquired through a competitive bidding process. The team is finalizing the bidding documents. Page 3 of 6 The World Bank Report No: ISR5153 Indicator Name Core Unit of Measure Baseline Current End Target Outcome 1: Improve ENEE's commercial Text Value 2008:0 0 40% of total customers management.Indicator: Number of customers Date 31-Dec-2008 11-Oct-2011 31-Dec-2013 Public Disclosure Copy in CMS and IRMS database Comments To be monitored only once the CMS and the IRMS are in place. The team is finalizing the bidding documents for the systems. 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 Date 31-Dec-2008 11-Oct-2011 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-2008 24-May-2011 31-Dec-2013 Comments To be monitored only once the CMS and the IRMS are in place. Team is in the process of finalizing the bidding documents. Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 0 Cumulative Yr 1:0 Yr 2:250 Yr Indicator: Number of transformers replaced 3 750 Yr 4:1000 Date 31-Dec-2008 11-Oct-2011 31-Dec-2013 Public Disclosure Copy Comments New transformers will be acquired through a bidding process. Team is in the process of finalizing the bidding documents. Page 4 of 6 The World Bank Report No: ISR5153 Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 0 Cumulative Yr1: 0 Yr2: 50 Indicator: Number of PCB-containing Yr3: 200 Yr4: 350 equipment replaced Date 31-Dec-2008 24-May-2011 31-Dec-2013 Public Disclosure Copy Comments Inventory of PCB-containing equipment is underway. It will be replaced during project implementation. The report on PCB's is in process. Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 0 Cumulative: Yr 1:5 Yr 2: 15 Yr Indicator: Number of heavy vehicles acquired 3: 25 Yr 4: 30 Date 31-Dec-2008 24-May-2011 31-Dec-2013 Comments Bidding process for acquisition of vehicles expected to be completed soon. Outcome 3: Strengthen ENEE's institutional Text Value Separate business units do Separate business units do Separate business units capacityIndicator: Setup and operation of not exist not exist operational separate business units Date 31-Dec-2008 11-Oct-2011 31-Dec-2013 Comments Process has not been launched yet. Outcome 3: Strengthen ENEE's institutional Text Value Distribution and Commercialization Unit does Distribution and capacityIndicator: Setup and operation of the Commercialization Unit does not exist. Commercialization Unit Distribution and Commercialization unit not exist. operational Date 31-Dec-2008 24-May-2011 31-Dec-2011 Comments Process has not been launched yet. Outcome 3: Strengthen ENEE's institutional Text Value No key staff in distribution and No key staff in distribution and Key staff selected and in capacityIndicator: Competitive selection of key commercialization unit commercialization unit place personnel in the distribution and Date 31-Dec-2008 24-May-2011 31-Dec-2010 commercialization unit (3 managers, 10 key Comments Process has not been staff) Public Disclosure Copy launched yet. 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-2008 24-May-2011 31-Dec-2013 Comments Value will be defined when project activities start implementation on the ground. Page 5 of 6 The World Bank Report No: ISR5153 Data on Financial Performance (as of 01-Aug-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date Public Disclosure Copy P104034 IDA-45360 Effective 22-Jan-2009 27-Feb-2009 29-Jun-2010 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 0.69 19.51 3.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy None Restructuring History Level two Approved on 17-Jun-2010, Level two Approved on 04-Oct-2011 Related Projects There are no related projects. Page 6 of 6