The World Bank Report No: ISR13962 Implementation Status & Results Honduras HN Rural Infrastructure Project (P086775) Public Disclosure Copy Operation Name: HN Rural Infrastructure Project (P086775) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 28-Apr-2014 Country: Honduras Approval FY: 2006 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Fondo Hondure#o de Inversi#n Social (FHIS) Key Dates Board Approval Date 07-Jul-2005 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date Last Archived ISR Date 11-Oct-2013 Effectiveness Date 04-Aug-2006 Revised Closing Date 30-Jun-2016 Actual Mid Term Review Date Project Development Objectives HN Rural Infrastructure Project (P086775) Project Development Objective (from Project Appraisal Document) The project development objectives are (i) to improve access, quality and sustainability of infrastructure services (roads, water & sanitation, and electricity) for the rural poor in Honduras; and (ii) to develop capacities and enabling environment for locally-driven service provision and planning. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Rural Electrification Project (P090113) Global Environmental Objective (from Project Appraisal Document) The GEF project development objectives are: (i) improving access, quality and sustainability of electricity services through the development of offgrid electrification model projects, and (ii) developing capacities and enabling environment for offgrid electrification in a decentralized setting. The project's global environmental objective is to achieve greenhouse gas (GHG) reductions through the reduction of policy, informational, financing and institutional capacity barriers that currently hinder renewable energy technology (RET) dissemination and market development in Honduras Has the Global Environmental Objective been changed since Board Approval of the Program? Public Disclosure Copy Yes No Page 1 of 10 The World Bank Report No: ISR13962 Component(s) Component Name Component Cost Participatory local planning 0.88 Public Disclosure Copy Infrastructure Service Delivery 16.00 Local Capacity Building and Policy Development TA 0.89 Project management, monitoring and evaluation 1.95 Microfinance services for SHS sub-programs 0.28 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Implementation Status Overview Implementation Progress is Moderatelly Satisfactory. Additional Financing for the Project was approved in June 2013 and the Project was declared effective in November 2013. Since the last supervision mission in September, the implementing agency (FHIS) has made significant progress preparing sub-projects for execution. Sub-projects: Currently, 21 projects in roads, 24 projects in water and sanitation, and 27 sub-projects in on-grid rural electrification are in the planning stages. Under the solar home systems component of the Project, FHIS has set the prices for SHS and prepared the contracts with the solar distribution companies for the NO of the Bank. The mini-hydro project in La Atravesada is nearly complete. All civil works, metering, and grid construction are complete. The generator experienced a mechanical failure, and had to be repaired. Repairs are complete, and the testing period for the system are scheduled to commence on 27 March. If the tests are successful, the system will run for a proving period of 1040 hours, after which time the sub-project will begin to generate electricity for the communities. New solar initiative: the team recently had discussions with Mario Pineda, recently appointed as the Minister for the Institute for Community Development, Water and Sanitation (IDECOAS), about a potential concessional loan of $40 million by the Korean foreign aid agency and US EX-IM bank in rural solar projects. The team emphasized the need for IDECOAS to coordinate with FHIS to ensure that efforts are not duplicated, that lessons learned are incorporated into Project design, and that market forces are utilized to ensure that distribution of solar systems is efficient and sustainable. Public Disclosure Copy Procurement: The Bank gave its NO for the procurement plan for the Project (both IDA credits), and is expected to disburse $4.7 million US in CY 2014. Safeguards: FHIS has made some progress on obtaining the environmental licenses pending for sub-projects already constructed. FHIS anticipates that all remaining licenses will be obtained by November 2014. For planned sub-projects, requests for environmental licenses for 14 sub-projects have been presented to the environmental agency (SERNA). The slow rate of processing of environmental licenses remains a significant concern. On average, each license takes 6-12 months to approve, causing significant delays in sub-project execution. Increased vigilance by FHIS, and if necessary, increased support by the Bank, are necessary to ensure that environmental licenses are secured for every sub-project in a timely fashion. In addition, measures to increase the environmental sustainability of sub-projects have been incorporated in the new designs for sub-projects. Preparation of the Environmental Remediation Action Plan, agreed as part of the MGAS, is well underway. It is anticipated that implementation of remediation actions will commence in October, and will be finalized by June 2015. Project Implementation Unit: With the inauguration of a new adminstration in Honduras, The Government is looking for ways to find savings and enhance the efficiency of Project implementation. To that end, consolidation of donor funded PIUs has been discussed. The team emphasized that, given the limited time for Project implementation, and that there is Page 2 of 10 The World Bank Report No: ISR13962 no possibility of Project extension, maintaining the institutional integrity of the existing PIU is absolutely critical if the Project is to succeed in meeting its sub-project execution goals. Selection of the additional mancomunidades: FHIS was given a deadline of April 4th for FHIS to submit their selection. This was achieved, albeit with only one additional mancommunidad. The Bank is currently reviewing the proposal. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Honduras Departamento de Olancho Yocon Honduras Departamento de Santa Barbara Trinidad Honduras Departamento de Olancho Silca Honduras Departamento de Ocotepeque Sensenti Honduras Departmento de La Paz Santiago Puringla Honduras Departamento de Copan Santa Rita Honduras Departmento de La Paz Santa Maria Honduras Departamento de Choluteca Santa Ana de Yusguare Honduras Departmento de La Paz San Pedro de Tutule Honduras Departamento de Copan San Nicolas Honduras Departamento de Choluteca San Marcos de Colon Honduras Departamento de Santa Barbara San Marcos Honduras Departamento de Santa Barbara San Luis Honduras Departamento de Santa Barbara San Jose de Colinas Honduras Departmento de La Paz San Jose Public Disclosure Copy Honduras Departamento de Copan San Jeronimo Honduras Departamento de Copan San Antonio Honduras Departamento de Olancho Salama Honduras Departamento de Santa Barbara Petoa Honduras Departamento de Choluteca Orocuina Honduras Departamento de Copan Nueva Arcadia Page 3 of 10 The World Bank Report No: ISR13962 Country First Administrative Division Location Planned Actual Honduras Departmento de La Paz Marcala Public Disclosure Copy Honduras Departamento de Olancho Mangulile Honduras Departamento de Ocotepeque Lucerna Honduras Departamento de Olancho La Union Honduras Departmento de La Paz La Paz Honduras Departamento de Ocotepeque La Labor Honduras Departamento de Copan La Jigua Honduras Departamento de Olancho La Guata Honduras Departamento de Olancho Jano Honduras Departamento de Olancho Guayape Honduras Departamento de Ocotepeque Fraternidad Honduras Departamento de Copan Florida Honduras Departamento de Olancho Esquipulas del Norte Honduras Departamento de Olancho El Rosario Honduras Departamento de Copan El Paraiso Honduras Departamento de Choluteca El Corpus Honduras Departamento de Choluteca Duyure Honduras Departamento de Ocotepeque Dolores Merendon Public Disclosure Copy Honduras Departamento de Copan Copan Ruinas Honduras Departamento de Olancho Concordia Honduras Departamento de Choluteca Concepcion de Maria Honduras Departamento de Santa Barbara Concepcion del Norte Honduras Departamento de Santa Barbara Chinda Honduras Departmento de La Paz Chinacla Honduras Departmento de La Paz Cane Page 4 of 10 The World Bank Report No: ISR13962 Honduras Departamento de Olancho Campamento Honduras Departamento de Copan Cabanas Public Disclosure Copy Honduras Departamento de Choluteca Apacilagua Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Direct project beneficiaries Number Value 0.00 461693.00 593036.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Female Beneficiaries Percentage Value 0.00 50.00 50.00 Sub Type Supplemental Generation capacity of renewable energy Megawatt hour Value 0.35 0.54 constructed under the project (MW) (MWh) Date 25-Mar-2014 30-Jun-2016 Comments Micro-enterprises for road maintenance trained Number Value 8.00 9.00 on technical standards and entrepreneurial Date 25-Mar-2014 30-Jun-2016 practices Comments Roads rehabilitated, Municipal kilometers Kilometers Value 15.35 25.00 program (kilometers) Date 25-Mar-2014 30-Jun-2016 Comments New household sewerage connections that are Number Value 2979.00 5558.00 resulting from the project intervention Date 25-Mar-2014 30-Jun-2016 Public Disclosure Copy Comments People provided with access to electricity by Number Value 0.00 119190.00 156894.00 household connections Date 24-Mar-2014 30-Jun-2016 Comments People provided with access to electricity by Number Value 0.00 77862.00 107671.00 hhold connections-Grid Sub Type Date 24-Mar-2014 30-Jun-2016 Breakdown Comments Page 5 of 10 The World Bank Report No: ISR13962 Ppl provided wth elec. by hhold conn.–Offgrid/ Number Value 0.00 41328.00 42166.00 minigrid–Only renewable sources Sub Type Date 24-Mar-2014 30-Mar-2016 Breakdown Comments On track to achieve 49,224 Public Disclosure Copy Share of rural population with access to an all- Percentage Value 30.00 40.00 45.00 season road Date 25-Mar-2014 30-Jun-2016 Comments To be measured at the conclusion of the project Number of rural people with access to an all- Number Value 0.00 167153.00 194653.00 season road Sub Type Supplemental Number of people in rural areas provided with Number Value 0.00 62655.00 89942.00 access to Improved Water Sources under the Date 01-Aug-2006 25-Mar-2014 30-Jun-2016 project Comments % population in target areas with access to Text Value 62 water and sanitation, provided with quality and Date 07-Jul-2005 31-Dec-2012 30-Jun-2016 sustainability. Comments This will be measured at the conclusion of the project Number of people in rural areas provided with Number Value 18493.00 32350.00 access to sanitation under the project Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments New end target % population in target areas with access to Text Value 33 electricity service, provided with adequate Date 07-Jul-2005 31-Dec-2012 30-Jun-2016 quality and sustainability Comments This will be measured at the conclusion of the project Value of contracts successfully procured by Text Value 0 24.06 31.1 UTIs (cumulative) Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments This is for all 6 Public Disclosure Copy mancomunidades Kilometers under routine roadmaintenance Kilometers Value 593.00 690.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Global Environmental Objective Indicators Page 6 of 10 The World Bank Report No: ISR13962 Indicator Name Core Unit of Measure Baseline Current End Target Sales amount of accredited solar companies Amount(USD) Value 48000000.00 5760000.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Public Disclosure Copy Comments Revised by FHIS. Number of community electricity connections Number Value 6024.00 6654.00 under project through renewable energy Date 07-Jul-2005 18-Mar-2014 30-Jun-2016 Comments 150 schools, plus community Target in PAD is 8. This is a lighting projects in Las mistake. The target is 228 Champas, La Atravesada, schools, plus existing off-grid Las Celeas, and Cuyamel. projects in communities including Las Champas, La Atravesada, Las Celeas, and Cuyamel. Counted by # of beneficiaries. households with solar systems installed Number Value 6132.00 7200.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments village micro grids Number Value 1.00 2.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments the mini-hydro project in La A second micro grid is not Atravesada is almost contemplated. Instead, for complete. It is expected that remote communities solar the system will be fully systems have been used operational by June. successfullly, in Las Champas, Las Celeas, and Cuyamel. Tons CO2 (greenhouse gas) emissions Text Value 59058 88058 avoided Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Revised by FHIS. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Distribution lines constructed or rehabilitated Kilometers Value 655.56 908.00 under the project Date 24-Mar-2014 30-Jun-2016 Comments Distribution lines constructed under the project Kilometers Value 655.56 908.00 Page 7 of 10 The World Bank Report No: ISR13962 Sub Type Date 24-Mar-2014 30-Jun-2016 Breakdown Comments Distribution lines rehabilitated under the project Kilometers Value 0.00 0.00 Public Disclosure Copy Sub Type Date 24-Mar-2014 30-Jun-2016 Breakdown Comments Number of integrated mancomunal Text Value 0 6 6 infrastructure plans completed Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Percentage of planned sub projects actually Percentage Value 96.00 72.00 implemented Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Roads rehabilitated, Rural Kilometers Value 0.00 593.00 690.00 Date 01-Aug-2006 25-Mar-2014 30-Jun-2016 Comments New piped household water connections that Number Value 0.00 2316.00 2897.00 are resulting from the project intervention Date 01-Aug-2006 25-Mar-2014 30-Jun-2016 Comments Piped household water connections that are Number Value 0.00 10041.00 11284.00 benefiting from rehabilitation works undertaken Date 01-Aug-2006 25-Mar-2014 30-Jun-2016 by the project Comments Latrines constructed Number Value 4230.00 5378.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments solar companies accredited Number Value 6.00 6.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Public Disclosure Copy micro-financing companies accredited Number Value 7.00 7.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Volume of Bank Support: Lines of Credit - Amount(USD) Value 1.50 1.48 Microfinance Date 25-Mar-2014 30-Jun-2016 Comments in millions in millions USD Page 8 of 10 The World Bank Report No: ISR13962 Volume of Bank Support: Institutional Amount(USD) Value 159371.00 180000.00 Development - Microfinance Date 25-Mar-2014 30-Jun-2016 Comments no change Public Disclosure Copy UTIs operating with trained staff Number Value 6.00 6.00 Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments No change Water Boards trained in operations and Number Value 82.00 100.00 maintenance Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Monitoring and Evaluation Systems Text Value 0 Complied with established. Date 07-Jul-2005 11-May-2012 30-Jun-2012 Comments Data on Financial Performance (as of 03-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P086775 IDA-40990 Effective 07-Jul-2005 16-Nov-2005 04-Aug-2006 30-Jun-2010 30-Jun-2016 P086775 IDA-52890 Effective 19-Jun-2013 12-Jul-2013 26-Nov-2013 30-Jun-2016 30-Jun-2016 P090113 TF-55968 Closed 21-Mar-2006 21-Mar-2006 04-Aug-2006 30-Jun-2008 30-Jun-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P086775 IDA-40990 Effective USD 47.00 47.00 0.00 49.60 0.00 106.00 P086775 IDA-52890 Effective USD 20.00 20.00 0.00 2.00 18.52 10.00 P090113 TF-55968 Closed USD 20.00 2.35 0.00 2.35 0.00 100.00 Public Disclosure Copy Disbursement Graph Page 9 of 10 The World Bank Report No: ISR13962 Public Disclosure Copy Key Decisions Regarding Implementation The proposal for an additional mancomunidad is currently under review. Restructuring History Level two Approved on 08-Apr-2010, Level two Approved on 29-Jun-2010, Level one Approved on 01-Jun-2012, Level 2 CD Decision on 01-May-2013 Related Projects P090113-Rural Electrification Project, P144324-HN RURAL INFRASTRUCTURE PROJECT (AF) Public Disclosure Copy Page 10 of 10