The World Bank Report No: ISR11473 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: 9 Status: ARCHIVED Archive Date: 16-Sep-2013 (P104034) Country: Honduras Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 22-Jan-2009 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 20-May-2013 Last Archived ISR Date 23-Jan-2013 Effectiveness Date 29-Jun-2010 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 05-Jun-2013 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 Moderate Implementation Status Overview Implementation status remains Moderately Satisfactory. The Project is gaining traction as the third and most important bidding process, which was for the Integrated Management System (IMS), was concluded in May 2013. With the implementation of the IMS, disbursements will accelerate considerably. By the end of CY 2013, Project disbursements are expected to increase to 68% from 28% at present. The leadership team for the The IMS Project component is in place, and ENEE will be recruiting to fulfill the remaining positions in Summer 2013. Page 1 of 6 The World Bank Report No: ISR11473 The Project has achieved significant progress on implementing both the Master Data Management (MDM) software and advanced metering component, which will allow ENEE to manage the billing of high-consumption customers (representing 45% of energy billed) more effectively. This component will be fully implemented by September. The Project has not demonstrated results yet since the measurement of key Project outcomes requires implementation of the IMS. Once the IMS is operational, the Project will be Public Disclosure Copy able to assess the impact on performance, which includes technical measures including CRI, SAIFI, SAIDI, and distribution losses. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Electricity losses per year in the project area Percentage Value Date Comments Total net injected generation Megawatt hour Value (MWh) Sub Type Supplemental Electricity losses per year in the project area- Percentage Value Technical Sub Type Supplemental Electricity losses per year in the project area- Percentage Value Non-Technical Sub Type Supplemental Average interruption frequency per year in the Number Value project area Date Public Disclosure Copy Comments Customers served in the project area Number Value Sub Type Supplemental Increase in the Cash Recovery Index (CRI) in Text Value To be defined 64% (2012) 8% improvement from each of the three regional distribution sub- baseline networks Date 31-Dec-2012 30-Jun-2013 31-Dec-2013 Comments The figure is only indicative as accurate reading is only Page 2 of 6 The World Bank Report No: ISR11473 possible once the system is in place. Annual decrease in system average Text Value Average of the three month average of 14 hours (2012) Improvement on an annual interruption duration index (SAIDI) period following basis Public Disclosure Copy implementation of the Incident Recording Management System (IRMS) in the whole company.Baseline: 3 mo. period prior to IRMS implementation Date 31-Dec-2008 30-Jun-2013 31-Dec-2013 Comments See comment above. Annual decrease in system average Text Value Average of the three month average of 7 interruptions Improvement on an annual interruption frequency index (SAIFI) period following (2012) basis implementation of the Incident Recording Management System (IRMS) in the whole company. Date 31-Dec-2012 30-Jun-2013 31-Dec-2013 Comments See comment above Electricity losses per year in project area (core Percentage Value 22.50 29.00 15.00 indicator) Date 31-Dec-2010 30-Jun-2013 31-Dec-2013 Comments see comment above Average interruption frequency per year in the Number Value project area (core indicator) Date 31-Dec-2012 30-Jun-2013 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 Public Disclosure Copy Outcome 1: Improve ENEE's commercial Text Value 30,000 5,000 5,000 management.Indicator: Number of AMRs Date 31-Dec-2008 30-Jun-2013 31-Dec-2013 installed Comments AMRs for the 5,000 consumers representing 45% of energy billed have been fully installed and the system is expected to be fully operaitonal by September. Page 3 of 6 The World Bank Report No: ISR11473 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 30-Jun-2013 31-Dec-2013 Public Disclosure Copy Comments Contract awarded, implementation to begin Q1 FY 2014 Outcome 1: Improve ENEE's commercial Text Value 2008:0 40% of total customers management.Indicator: Number of customers Date 31-Dec-2008 30-Jun-2013 31-Dec-2013 in CMS and IRMS database Comments To be monitored only once the CMS and the IRMS are in place. 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 30-Jun-2013 31-Dec-2013 Comments To be monitored only once the CMS and the IRMS are in place. 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 30-Jun-2013 31-Dec-2013 Comments To be monitored only once the CMS and the IRMS are in place. Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 664 Cumulative Yr 1:0 Yr 2:250 Yr Indicator: Number of transformers replaced 3 750 Yr 4:1000 Public Disclosure Copy Date 31-Dec-2008 30-Jun-2013 31-Dec-2013 Comments Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 12 Cumulative Yr1: 0 Yr2: 50 Indicator: Number of PCB-containing Yr3: 200 Yr4: 350 equipment replaced Date 31-Dec-2008 30-Jun-2013 31-Dec-2013 Comments Page 4 of 6 The World Bank Report No: ISR11473 Outcome 2: Rehabilitate distribution networks. Text Value 2008:0 20 Cumulative: Yr 1:5 Yr 2: 15 Yr Indicator: Number of heavy vehicles acquired 3: 25 Yr 4: 30 Date 31-Dec-2008 30-Jun-2013 31-Dec-2013 Public Disclosure Copy Comments 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 30-Jun-2013 31-Dec-2013 Comments cost centers identified. ENEE expects cost centers to be fully operational by June 2015. 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 30-Jun-2013 16-Dec-2013 Comments This will be implemented over the next year as the MIS is rolled out. 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 30-Jun-2013 17-Jun-2013 commercialization unit (3 managers, 10 key Comments Personnel have been staff) selected competitively. 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 30-Jun-2013 31-Dec-2013 Comments Baseline values defined in customer survey carried out in Public Disclosure Copy May 2013. Data on Financial Performance (as of 19-Jul-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P104034 IDA-45360 Effective 22-Jan-2009 27-Feb-2009 29-Jun-2010 31-Dec-2013 31-Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Page 5 of 6 The World Bank Report No: ISR11473 P104034 IDA-45360 Effective XDR 20.20 18.68 1.52 5.33 13.35 29.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Project received a request from the GoH to request an extension of the credit of 18 months to June 2015. The team will take the necessary steps to process the request as soon as possible. Restructuring History Level two Approved on 17-Jun-2010, Level two Approved on 04-Oct-2011 Related Projects Public Disclosure Copy There are no related projects. Page 6 of 6