The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) REPORT NO.: RES51113 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ARGENTINA RENEWABLE ENERGY FOR RURAL AREAS PROJECT APPROVED ON APRIL 7, 2015 TO THE ARGENTINE REPUBLIC Energy & Extractives Latin America and Caribbean Regional Vice President: Carlos Felipe Jaramillo Country Director: Jordan Z. Schwartz Regional Director: Franz R. Drees-Gross Practice Manager/Manager: Stephanie Gil Task Team Leader(s): Lucia Spinelli The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) ABBREVIATIONS AND ACRONYMS COVID Coronavirus Disease DO Development Objective GoA Government of Argentina IP Implementation Progress M&E Monitoring and Evaluation COVID Coronavirus Disease PDO Project Development Objective PERMER Argentina Renewable Energy for Rural Areas Project (P133288) (Proyecto de Energías Renovables en Mercados Rurales) PHC Primary Health Care Center PIU Project Implementation Unit SHS Solar Home Systems The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) BASIC DATA Product Information Project ID Financing Instrument P133288 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 07-Apr-2015 30-Jun-2022 Organizations Borrower Responsible Agency Argentine Republic Project Development Objective (PDO) Original PDO The project's development objective is to provide and enhance access to modern energy services in selected rural areas of Argentina. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-84840 07-Apr-2015 09-Oct-2015 04-May-2016 30-Jun-2022 168.66 69.76 98.90 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Argentina Renewable Energy for Rural Areas Project (PERMER or “the Project”), financed by a US$200 million IBRD loan, has provided access or enhanced access to modern energy services in selected rural areas of Argentina to more than 161,000 people (target: 454,300). These beneficiaries were reached through the installation of 34,000 solar home systems (SHS) for households, 273 SHS for schools, and 1,442 electric fences. Since April 2021, Progress towards achieving the Development Objective (DO) and Implementation Progress (IP) have been rated Moderately Unsatisfactory (MU) as implementation was delayed in 2020 due to changes in government, multiple changes in authorities and the COVID pandemic. Overall, the Project has committed contracts in the amount of US$93 million for subprojects under Component 1 that will benefit 246,700 people; it has disbursed US$69.76 million representing 41.4 percent of the Loan. The Project was restructured for the first time in October 2020 to: extend the closing date for 20 months from October 31, 2020, to June 30, 2022; cancel part of the original loan amount (USD 31.3M); and to adjust the end-of-project targets. The government requested a 12-month extension of the closing date until June 30, 2023 (accumulating a 32-month extension of the original closing date), reallocation of Loan proceeds between Disbursement Categories, and revision/extension of the end-of-project targets and agreed on the cancellation of Component 2. Given all the recent progress, once the restructuring is processed, both indicators (IP and DO) will be upgraded to Moderately Satisfactory (MS). The PDO will be achievable by new closing date (June 30, 2023). 2. Project implementation has regained speed in the last 14 months evidenced both in the amount of commitments and in the number of bids published. In the last 14 months, the Project Implementation Unit (PIU) has greatly improved implementation and followed an action plan agreed with the Bank to improve performance and justify the restructuring. The PIU carried out ten new bidding processes for providing electricity to: schools, water pumping systems, mini-grids, productive uses, National Parks and Primary Health Care Centers (PHC) under Component 1. Six of these contracts in the amount of US$30.31 million have been signed and are being implemented. The other four contracts are being assessed for an amount of US$52.62 million are expected to be signed before August 2022. In addition, six contracts already under implementation (Component 1) will be amended to respond to new electrification requirements identified and requested by the participating provinces; these amendments will increase the contracts by US$9.6 million. The last bidding process to provide electricity to an isolated astronomy observatory and to Paloma Yaco area (US$9.2 million) (Component 1) is under preparation and will be published before end of June, 2022 and is expected to be signed by the end of August 2022. 3. Monitoring and Evaluation (M&E). The monitoring and evaluation for PERMER has been strengthened and benefitted from lessons learned and experiences with the implementation of previous renewable energy projects in rural areas in Argentina. A specific study was conducted by the PERMER PIU to capture all that experience to improve current project implementation. The study’s main conclusions have helped inform and improve the engagements with the participating provinces and private contractors. The impact on beneficiaries has also been assessed and beneficiaries have been better identified and mapped. The PIU has systematized and geo-referenced the data of all renewable subprojects and beneficiaries under the different projects in a single view that is available at Secretary of Energy website (https://sig.se.gob.ar/visor/visorsig.php). In addition, part of the PERMER team has been recently trained by the World Bank in the Geo-Enabling Initiative for Monitoring and Supervision – KoBo Toolbox application. The PIU is already using this tool to collect and analyze data of the Project. The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) 4. Fiduciary and Safeguards. The General Directorate of Sectoral and Special Programs and Projects under the Ministry of Economy provides fiduciary services to the Project. The PIU and the General Directorate have developed a suitable working methodology and procurement and financial management have acceptable arrangements. The task team has been closely supporting the technical and the fiduciary team to improve the implementation of the Project. Overall, the Borrower’s and PIU’s performance are satisfactory. Financial Management has been rated Satisfactory (S) throughout the life of the Project, Project Management, Procurement, Monitoring and Evaluation, and Overall Safeguards ratings are rated Moderately Satisfactory (MS). There are no overdue audits for the Project nor are there audits which are not satisfactory to the World Bank. Also, the project already complied with all loan covenants. 5. The current status of implementation of safeguards is moderately satisfactory. The participation of Indigenous Peoples in the processes of preparation and implementation of home solar systems and micro-grids subprojects is in place, but cultural adaptation of social communication documents is suffering delays. The environmental and social team is working together with indigenous peoples' organizations and bilingual intercultural educational institutions to finalize this process. The Micro-grids subprojects are under implementation and successfully executing the corresponding environmental and social management plans. Regarding resettlement, some of the RPF procedures related to the Microgrids subprojects are being implemented by local teams (provincial or municipal) with uneven capacity. In this context, these processes require close monitoring by the PIU’s environmental and social team to ensure compliance with OP 4.12, and in all the cases the requirements of the policy have been met. There is only one work, the Luracatao Microgrid in the Province of Salta, that required the preparation of a RAP to manage affectation of assets of 45 PAPs before the beginning of the works. The rest of the micro-grids only required to manage the donation of small plots of land for the installation of photovoltaic plants, and the measures to handle these cases were included in the corresponding environmental and social management plans. 6. The Project environmental and social team is in the process of incorporating two specialists to monitor environmental management for the construction stage of the mini-networks, as previously agreed with the Bank. In addition, this team received training on ESF and on the use of the GEMS tool for monitoring of E&S issues. C. Rationale for Restructuring 7. Given the delays as a result of changes in authorities and the pandemic, the Government of Argentina requested a new extension of the project’s closing date. On September 17, 2021, the Bank provided an “in Principle” approval to extend the closing date for an additional 12 months. The COVID lockdown and delays in confirming authorities affected the PIU’s work, e.g., processing of payments, contract signing. Moreover, social distancing policies and lockdown restrictions affected Project implementation by delaying the identification and the design of new subprojects, field work (installations and inspections), payment processes and temporarily preventing contractors from accessing rural communities to perform works financed under the Project. Currently subprojects have restarted their implementation, but as they did suffer considerable delays on the ground installation and the certification processes, more implementation time is needed. The Government has been gradually returning to the face-to-face work, which allowed the PIU team to increase its interaction with the provinces, to carry out new bidding processes and to accelerate inspections and payments. 8. The objective of providing and enhancing access to modern electricity services in selected rural areas of Argentina through renewable energy technologies has remained a high priority for the government. Since the Project’s effectiveness in 2016, the government has demonstrated continued commitment to renewable energy-based strategy as an enduring policy, despite several changes in energy authorities and ministerial reorganizations. The current energy sector authorities have reiterated the importance of PERMER to accomplish the improved access objective. Their view is clearly stated in the request for extension of the project. The COVID pandemic and lockdown measures have exacerbated The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) the importance of electricity, especially in remote areas, and have emphasized PERMER’s strategic role in facilitating communications and in improving access to health services, education and jobs, in remote and isolated areas. 9. The extension of the closing date is necessary to complete ongoing subprojects, sign remaining contracts and execute the works according to the agreed action plan. After the last supervision mission in April-May 2022, the government requested a 12-month extension of the closing date until June 30, 2023 (equating to a cumulative 32-month extension of the original closing date), reallocation of Loan funds between Disbursement Categories, and revision/extension of the end-of-project targets. Without this closing date extension, only about 170,000 out of 454,000 beneficiaries would be reached under Component 1, and around US$111 million would not be executed (US$98.9 million not disbursed and US$12 million not documented in the designated account). The project needs the extension to bid and implement subprojects that were already committed. Given the time and the human resources constraints, the Secretary of Energy has decided to focus its efforts in moving the electrification component and supporting activities. Therefore, no resources will be allocated to Component 2 and the Loan Agreement will be amended accordingly. To strengthen capacity- building activities and sustainability of the project, the PIU will work together with provinces to reinforce their monitoring capacity, share best practices and lessons learned, and better diagnose access needs to modern energy services. All these activities are part of what the appraisal document identified as RED PERMER (name given to a series of technical assistance activities to strengthen provincial ownership of the project, digitalization of project related information and monitoring capacity). As a starting point, a workshop at the federal level will take place on June 28, 2022. 10. The extension of the closing date will provide or improve access to reliable electricity services to an additional 263,000 beneficiaries (reaching a total of 509,000 direct beneficiaries) in some of the most vulnerable areas of the country. In addition, the resilience of vulnerable and remote communities to the COVID pandemic and other events will increase. The extension is justified by significant improvements in implementation, the PIU’s stronger capacity, achievement of the action plan, the climate co-benefits of interventions and the very tangible positive impacts of the Project on the most vulnerable and isolated population of Argentina. 11. Outputs. The expected outputs for the main activities implemented under the project include the electrification with solar systems of 82,500 homes, 745 schools, and 494 health care centers; the installation of 342 solar systems in national parks; 11 mini grids; nearly 6,900 solar electric fences and 1,500 solar electric water pumping systems for productive uses. 12. The PIU has updated the action plan and adjusted key milestones based on the proposed new closing date. The Plan was presented during the last supervision mission in April – May 2022. The task team and the Borrower reviewed the status of all eligible subprojects and agreed that all remaining contracts eligible for project financing need to be signed before August 31, 2022. Any activity delivered after the proposed new closing date, should be financed by the government, which has expressed its commitment to do so after June 30, 2023, if necessary. 13. Until the new closing date, the Project will focus on: a) Signing all remaining contracts under bidding by August 31, 2022. b) Continue strengthening the PIU’s implementation capacity to supervise subproject implementation efficiently. c) Deepening the supervision capacity of local stakeholders and strengthening the sustainability of investments. II. DESCRIPTION OF PROPOSED CHANGES A. Results Framework The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) 14. The Results Framework will be revised to more accurately reflect the expected outcomes and outputs of the restructured Project. The PDO indicator “Direct Project Beneficiaries” target is being increased from 454,000 to 509,000 (12 percent increase). The sub-targets under this indicator “Beneficiaries with improved access” and “Beneficiaries that obtained access” are reduced by 41 percent and increased 31 percent respectively. These changes increase the outreach of the Project compared to the 2020 restructuring. The number of beneficiaries associated with the provision of electricity to schools, individual isolated households, National Parks, water pumping, electric fences, primary health care centers and mini grids are increased. In contrast, the installations of solar thermal systems under Component 2 are not a priority and therefore the indicators related to this component will be dropped. 15. The targets of indicators were adjusted based on the incorporation of new subprojects mainly National Parks, primary health care centers and mini-grids and new purchases from SHS for households, SHS for schools when compared with the October 2020 restructuring. The end-of-target date for all indicators will be extended to June 30, 2023. Finally, a new indicator will be added under Component 1 to measure the number of people that obtained access to an electricity service for productive uses through electric fence. B. Components and Costs 16. Component 2 will be dropped from the Project, and the Loan amount allocated to it will be made available for the other components. The proposed estimated component costs are shown in Table 1 below: . Table 1. Change in Component Costs Component Original cost Revised cost Proposed Percent change Expenditures Available (US$) based on 1st cost to date (US$) (from restructuring (US$) (US$)1 Proposed (US$) cost) Component 1 - 183,400,000 160,538,579 164,121,213 2% 51,931,557 112,189,656 Renewable electricity service provision Component 2- 7,900,000 5,005,000 0 -100% 0 0 Solar thermal energy service provision Component 3 - 5,700,000 772,441 1,742,887 126% 369,827 1,373,060 Project deployment support Component 4 3,000,000 1,842,756 2,294,676 25% 965,202 1,329,474 – Project management Front-end fee 0 500,000 500,000 0% 500,000 0 1 Data from PIU, as of May 11, 2022. The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) Total 200,000,000 168,658,776 168,658,776 0 53,766,586 114,892,190 C. Closing Date 17. The closing date will be extended from June 30, 2022 to June 30, 2023. A subproject’s implementation timeline is summarized in the table below. Table 2. Subprojects implementation timeline Licitación Abr/2022 May/2022 Jun/2022 Jul/2022 Aug/2022 Sep/2022 Oct/2022 Nov/2022 Dic/2022 Jan/2023 Feb/2023 Mar/2023 Apr/2023 May/2023 Jun/2023 LPN Payment 3/2021 Sign Award in Execution Water Contract advance pumping LPN Payment Sign 4/2021 in advance Execution Contract Minigrids LPN Payment Sign 5/2021 in advance Execution Contract Minigrids LPN Payment Sign 6/2021 in advance Execution Contract Minigrids LPN Payment 7/2021 Sign Award in Execution National Contract advance Parks LPN Payment 1/2022 Sign in Execution National Contract advance Parks Award LPN Payment 2/2022 Sign in Published Award Execution Electric Contract advance Fence LPN Payment Execution Sign 3/2022 Published Award in Contract PHC advance LPN Payment Execution Sign 4/2022 Published Award in Contract Minigrids advance D. Reallocation between Disbursement Categories 18. The Loan funds will be reallocated from Category 1 to Category 2 in the amounts shown in Table 2 below based on the government’s latest action plan. The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) Table 3. Changes in the Amounts of the Loan Allocated by Disbursement Category Revised Amount Proposed New based on first Amount Original Percentage of Expenditures Category restructuring (in US$) to be financed (inclusive of Taxes) (in US$) (1) Goods and Works under Part 165,543,579 164,121,213 100 percent 1 of the Project (2) Goods, Consultants’ services 2,615,197 4,037,563 100 percent (including audits), Non- consulting services, Training and Operating Costs under Parts 3 and 4 of the Project (3) Front-end Fee 500,000 500,000 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07(b) of the General Conditions of the Loan Agreement (4) Interest Rate Cap or Interest 0 0 Amount due pursuant to Section Rate 2.08(c) of the Loan Agreement Collar Premium SUBTOTAL 168,658,776 168,658,776 Cancellation effective as of 31,341,224 August 31, 2020 ORIGINAL AMOUNT 200,000,000 19. Allocations for disbursement Categories 1 and 2 will be adjusted as shown above due to the following reasons: a) The amount for the Category (1) “Goods and Works under Part 1 of the Project” will be reduced as a result of the focus on activities to be implemented under Component 1, considering the expected availability of funds. b) The amount for the Category (2) “Goods, Consultants' services (including audits), Non-consulting services, Training and Operating Costs under Parts 3 and 4 of the Project” will be increased to develop the “RED PERMER” and procure services under this category. E. Disbursement Estimates 20. The Disbursement Schedule has been updated in accordance with the PIU’s most recent implementation plan based on the extended closing date, considering the nature of the activities under implementation or under bidding processes. Table 4. Disbursement estimates by Quarter (USD) Fiscal Year Q1 Q2 Q3 Q4 Total FY22 0 0 0 4,000,000 4,000,000 The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) FY23 17,000,000 25,700,000 29,500,000 22,696,988 94,896,988 Total estimated disbursements (US$): 98,896,988 F. Risk Ratings 21. Project Risk ratings are summarized below. Given the improvement in implementation, the risk rating for Institutional Capacity for Implementation and Sustainability will be downgraded from ‘Substantial’ to ‘Moderate’. Current risk ratings will be updated in a new ISR once the proposed Restructuring is approved. Table 5. Systematic Operations Risk Rating Tool (SORT) Risk Category PAD Rating Last ISR Rating Current Ratings 1. Political and Governance Moderate Substantial Substantial 2. Macroeconomic Moderate High High 3. Sector Strategies and Policies Moderate Moderate Moderate 4. Technical Design of Project or Moderate Moderate Moderate Program 5. Institutional Capacity for Moderate Substantial Moderate Implementation and Sustainability 6. Fiduciary Moderate Moderate Substantial 7. Environmental and Social Low Moderate Moderate 8. Stakeholders Moderate Moderate Moderate OVERALL Moderate Substantial Substantial 22. Institutional capacity for implementation and sustainability was downgraded to Moderate as the PIU is better staffed and administrative process are more clear and agile. 23. The Fiduciary risk was upgraded to substantial because of the delays faced by all procurement processes, particularly in the selection and award phase. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ PBCs ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) 1. Renewable electricity service 1. Renewable electricity service 161.04 Revised 164.63 provision provision 2. Solar thermal energy service 2. Solar thermal energy service 5.01 Revised 0.00 provision provision 3. Project deployment support 0.77 Revised 3. Project deployment support 1.74 4. Project management 1.84 Revised 4. Project management 2.29 TOTAL 168.66 168.66 The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-84840 Effective 31-Oct-2020 30-Jun-2022 30-Jun-2023 30-Oct-2023 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IBRD-84840-001 | Currency: USD iLap Category Sequence No: 1 Current Expenditure Category: GO, CW - Part 1 165,543,579.00 52,086,228.49 164,121,213.00 100.00 100.00 Current Expenditure Category: GO, CS (INCLUDING AUDITS), NON-CS, TRG, OP - iLap Category Sequence No: 2 P. 3 & 4 2,615,197.00 2,175,559.22 4,037,563.00 100.00 100.00 iLap Category Sequence No: 4 Current Expenditure Category: Interest Rate Cap/Collar Premium 0.00 0.00 0.00 iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 500,000.00 500,000.00 500,000.00 Total 168,658,776.00 54,761,787.71 168,658,776.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) Year Current Proposed 2015 0.00 0.00 2016 20,000,000.00 20,500,000.00 2017 0.00 0.00 2018 0.00 0.00 2019 18,000,000.00 17,939,053.52 2020 20,000,000.00 6,920,765.12 2021 90,000,000.00 12,170,327.16 2022 20,658,776.00 16,231,642.01 2023 0.00 94,896,988.19 OPS_DETAILEDCHANGES_SORT_TABLE SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating at Approval Current Rating Political and Governance  Moderate  Substantial Macroeconomic  Moderate  High Sector Strategies and Policies  Moderate  Moderate Technical Design of Project or Program  Moderate  Moderate Institutional Capacity for Implementation and  Moderate  Moderate Sustainability Fiduciary  Moderate  Substantial Environment and Social  Low  Moderate Stakeholders  Moderate  Moderate Other  Moderate  Moderate Overall  Moderate  Substantial . The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) . Results framework COUNTRY: Argentina Argentina Renewable Energy for Rural Areas Project Project Development Objectives(s) The project's development objective is to provide and enhance access to modern energy services in selected rural areas of Argentina. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Direct project beneficiaries (Action: This Objective has been Revised) Direct project beneficiaries (Number) 0.00 509,468.00 Rationale: April 2022 supervision mission and the restructuring request were taken as an opportunity to update indicator’s target and align them with the updated project objectives taking into account the new implementation period. The PDO indicator target for “Direct Project Beneficiaries” (number of total beneficiaries) was increased by 12% (from 454,300 in October 2020 RP to 509,468 now) based on the extension of the closing date June 30, 2023. Action: This indicator has been Revised The sub-targets under this indicator “Beneficiaries with improved access” and “Beneficiaries that obtained access” were reduced by 41% and increased 31% respectively, due to the cancellation of the solar thermal activities (component 2) and the incorporation of new purchases from SHS, SHS for National Parks and PHC (component 1) when compared with the targets included in the restructuring paper of October 2020. Direct project beneficiaries that obtained enhanced access (daily hours and quality of service) to modern energy services 0.00 70,076.00 (electricity, water pumping, productive uses, solar thermal applications) (Number) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Target Value was updated considering the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised The target for this indicator was reduced by 41 % when compared with the targets included in the October 2020 restructuring paper, from 118,784 to 70,076 people, due to the cancellation of the solar thermal activities (Component 2). Direct project beneficiaries that obtained access to modern energy services (electricity, water pumping, productive uses, 0.00 439,392.00 solar thermal applications) (Number) Rationale: Target Value was updated considering the Project extension, and GoA’s updated objectives. The target for this indicator was increased by 31% when compared with the targets included in the October 2020 Action: This indicator has been Revised restructuring paper, from 335,515 to 439,392 people due to the new purchases for SHS, SHS for National Parks, and PHC (Component 1). Female beneficiaries (%) (Percentage) 0.00 40.00 People provided with access to electricity by household connections (Action: This Objective has been Revised) People provided with access to electricity by household 0.00 348,091.00 connections (CRI, Number) Rationale: Target Value was updated considering the Project extension, and GoA’s updated objectives.. The target for “People provided with access to electricity by household connections” was risen by 89% when compared to Action: This indicator has been Revised the target included in the October 2020 restructuring (from 193,991 in the RP to 348,091). This increase is due to the installations of mini-grids and the new contracts for SHS (Component 1). People provided with new elec. by household connection.– 0.00 348,053.00 Offgrid/minigrid–Only renewable sources (Number) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Target Value was updated considering the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised The target is increased by 80 % from 193,631 in the 2020 restructuring paper to 348,053 people in this restructuring due to new purchases in SHS for households (Component 1). People provided with new electricity by household connection.–Offgrid/minigrid–Any source except only 0.00 38.00 renewable (Number) Rationale: Target Value was updated considering the Project extension, and GoA’s updated objectives . The target was reduced by 89% from 360 in the October 2020 restructuring to 38 people in this restructuring. Only Mini Grid Action: This indicator has been Revised Los Naranjos in Salta province (Component 1) has a hydro component that benefits 38 people. Community electricity connections constructed under the project (Action: This Objective has been Revised) Community electricity connections constructed under the project 0.00 1,660.00 (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator was reduced by 37% (from 2,615 in the 2020 restructuring to 1,660 now) due to the cancellation of some Action: This indicator has been Revised schools' contracts with Newsan Gamma (Component 1). Community elec. connections constructed–Offgrid/minigrid– 0.00 1,580.00 Only renewable sources (Number) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator was reduced by 38% (from 2,555 in the 2020 restructuring to 1,580 now) mainly due to the cancellation of Action: This indicator has been Revised schools' contracts with Newsan Gamma (Component 1). Commy elec. connection constructd–Offgrid/minigrid–Any 0.00 80.00 source except only renewable (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised This indicator was increased by 33% (from 60 in the 2020 restructuring to 80 now) mainly due to the increased prioritization of smaller-scale systems and taking into account community connections energized in villages powered by hybrid microgrids (renewable+thermal) (Component 1). People that obtain a daily and constant electricity service (through minigrids) (Action: This Objective has been Revised) People that obtain a daily and constant electricity service 0.00 3,872.00 (through minigrids) as a result of the project (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised The indicator target was risen by 8% when compared to the October 2020 restructuring (from 3,600 in the 2020 restructuring to 3,872 now). The planned number of minigrids (Component 1) was increased by the PIU. The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline End Target People that obtain a daily and constant electricity service and with prior access to the service, as a result of the project 0.00 3,291.00 (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. In accordance with the increase in the planned number of minigrids (Component 1), this indicator target was increased by Action: This indicator has been Revised 2% (from 3,240 in the 2020 restructuring to 3,291 now). People that obtain a daily and constant electricity service (through minigrids) and without prior access to the service 0.00 581.00 (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator target was increased by 61% when compared to the 2020 restructuring (from 360 to 581). Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 1 - Renewable electricity service provision:(Cost $215.61 M) (Action: This Component has been Revised) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Community electricity connections constructed 0.00 745.00 under the project (schools) (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator target was reduced by 59% (from 1,821 in the 2020 restructuring to 745 now) due mainly to the cancellation contracts´ with Action: This indicator has been Revised Newsan Gamma. Community electricity connections constructed 0.00 838.00 under the project (other public facilities) (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator target was increased by 122% (from 376 in the 2020 restructuring to 838 now) due mainly to the increased prioritization of Action: This indicator has been Revised National Parks and PHCs Generation Capacity of Hydropower constructed 0.00 0.30 or rehabilitated under the project (Megawatt) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. The indicator target was increased by 40% (from 0.21 MW to 0.3 MW) in accordance with the increased priority given to minigrid Action: This indicator has been Revised developments. The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Generation Capacity of Hydropower 0.00 0.30 constructed under the project (Megawatt) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised The indicator target was increased by 40% (from 0.21 MW to 0.3 MW) in accordance with the increased priority given to minigrid developments. Generation Capacity of Renewable Energy (other 0.00 10.34 than hydropower) constructed (MW) (Megawatt) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised The indicator target was increased by 7% (from 9.66 MW to 10.34 MW) in accordance with the increased priority given to minigrid developments. Generation Capacity of Renewable Energy 0.00 10.13 constructed-Solar (MW) (Megawatt) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. Action: This indicator has been Revised The indicator target was increased by 7% (from 9.48 MW to 10.13 MW) in accordance with the increased priority given to minigrid developments. Generation Capacity of Renewable Energy 0.00 0.21 constructed – Wind (MW) (Megawatt) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Rationale: Target Value was updated taking into account th Project extension, and GoA’s updated objectives. The indicator target was increased by 20% (from 0.18 MW to 0.21 MW) in accordance with the increased priority given to minigrid Action: This indicator has been Revised developments. People that obtained access to an electricity 0.00 19,625.00 service for water pumping only (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator target was reduced by 84% (from 124,200 in the October 2020 restructuring to 19,625 now) due mainly to the reduction in Action: This indicator has been Revised the final number of water pumping systems to be installed. Micro-enterprises that obtained an electricity 0.00 8,313.00 service under the project (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator target was reduced by 7% (from 8,940 to 8,313) due mainly to the reduced prioritization of this component by the new Action: This indicator has been Revised administration's PIU. Collective micro-enterprises that obtained an 0.00 577.00 electricity service under the project (Number) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. This indicator target was reduced by 13% (from 665 to 577) mainly due to the reduced prioritization of this component by the new Action: This indicator has been Revised administration's PIU. Individual micro-enterprises that obtained an 0.00 7,736.00 electricity service under the project (Number) Rationale: Target Value was updated taking into account project extension, and GoA’s updated objectives. This indicator target was reduced by 7% (from 8,276 to 7,736) mainly due to the reduced prioritization of this component by the new administration's PIU. Action: This indicator has been Revised Micro-enterprises supported under the project 0.00 77.00 that increase their production (Percentage) Rationale: Target Value was updated taking into account te Project extension, and GoA’s updated objectives. Action: This indicator has been Revised This indicator target was increased by 18% (from 65 to 77) mainly due to the increased prioritization of this component by the new administration's PIU. People that are satisfied with the benefits arising from obtaining access or an enhanced access to 0.00 70.00 80.00 electricity through household connections (Percentage) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 Action: This indicator has been Revised People that are satisfied with the benefits arising from obtaining access or an enhanced access to 0.00 0.00 80.00 electricity through community connections (Percentage) Action: This indicator has been Revised People that obtained access to an electricity service for productive uses through electric fence 5,768.00 27,480.00 (Number) Rationale: Target Value was updated taking into account the Project extension, and GoA’s updated objectives. Action: This indicator is New The Productive Uses indicator is added since the Project bided three subprojects for the electric fences. The baseline is 5,768 beneficiaries due to the LPN 1/2019 subproject of electric fence finalized in May 2020. 3 - Project deployment support:(Cost $6.71 M) (Action: This Component has been Revised) Capacity building, outreach, and training activities 0.00 70.00 implemented under the project (Number) Action: This indicator has been Revised Clean energy studies and strategies supported 0.00 10.00 under the project (Number) Action: This indicator has been Revised IO Table SPACE The World Bank Argentina Renewable Energy for Rural Areas Project (P133288) The World Bank Argentina Renewable Energy for Rural Areas Project (P133288)