The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) REPORT NO.: RES36113 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE CARIBBEAN ENERGY STATISTICS CAPACITY ENHANCEMENT PROJECT APPROVED ON SEPTEMBER 21, 2017 TO THE LATIN AMERICAN ENERGY ORGANIZATION (OLADE) ENERGY AND EXTRACTIVES LATIN AMERICA AND CARIBBEAN Regional Vice President: Axel van Trotsenburg Country Director: Tahseen Sayed Khan Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Antonio Alexandre Rodrigues Barbalho Task Team Leaders: Elisabeth Maier, Koffi Ekouevi The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) ABBREVIATIONS AND ACRONYMS GDP Gross Domestic Product IEA International Energy Agency IRES International Recommendations for Energy Statistics IT Information Technology MTR Mid-term Review OLADE Latin American Energy Organization PDO Project Development Objective RAM Random Access Memory SAAS Software as a Service SQL Structured Query Language TTL Task Team Leader USD United States Dollars The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) BASIC DATA Product Information Project ID Financing Instrument P155034 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 21-Sep-2017 16-Sep-2019 Organizations Borrower Responsible Agency Ministry of Science, Technology, Energy and Mining (Jamaica),Ministry of Energy, Science and Technology, and Public Utilities (MESTPU-Belize),Ministry of Infrastructure OLADE - Latin American Energy Association Development, Public Utilities, Energy, Transport and Implemen. (Grenada),Guyana Energy Agency,Ministry of Natural Resources and Environment (Suriname) Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) Project Development Objective (PDO) Original PDO The PDO is to enhance energy statistics and planning capacity within five Caribbean client countries: Belize, Grenada, Guyana, Jamaica and Suriname. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A5680 21-Sep-2017 04-Oct-2017 07-Nov-2017 16-Sep-2019 .50 .25 .25 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status The project was approved on September 21, 2017, the Grant Agreement was signed on October 4, 2017 and became effective on November 7, 2017. First disbursement was made on January 18, 2018. As of June 10, 2019, out of a total amount of US$0.5 million, the project has disbursed 50.6 percent (US$ 0.25 million). The project is set to close on September 16, 2019. Project implementation has experienced some delays due to (i) an initial 3-month delay in achieving project effectiveness, which led to delays in the first disbursement; (ii) introduction of new harmonized energy statistics methodology to be aligned with the International Recommendation of Energy Statistics (IRES), the United Nations International Statistics Department and the International Energy Agency, and (iii) slight delays in data gathering process from some of the country beneficiaries due to lack of capacity and time needed to have focal points appointed. Component 1: Analysis of energy structure, institutional and regulatory framework 1. Implementation of this component has been completed. As part of the analysis of the current state of the energy information in each country, OLADE prepared the Survey on the Management of Energy Statistics in Latin America and the Caribbean whose objective was to examine which institutions participate in the management of energy statistics in each country, as well as the legal framework that covers these activities. The Stakeholders Mapping & Energy Flows was completed in July 2018. The document includes the stakeholders mapping of the energy sector of the five beneficiary countries, followed by the identification of the energy structure of each country. The Human Resources Management, Energy Statistics & Planning Awareness workshops were held in each country during July and August 2018. The key stakeholders participated in the workshops, and technical meetings were held with each one of them to identify the information that is going to be collected for the National Energy Information System. Component 2: Strengthening energy statistics system and capacity The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) 2. This component supports the development of specific methodology including software and hardware. Completed activities under this component are: a. Workshop was held on the Methodology for Energy Balances OLADE & IRES. The objective of the workshop was to review the main differences and improvements that are being made to the new methodology. A pre-identification of the energy flows was made for each beneficiary country. b. “Human Resources Management, Energy Statistics & Planning Awareness” workshop was held with the objectives to strengthen the participants’ capacities in energy statistics management, energy planning, and the link between energy information management and planning. Surveys were conducted prior to the workshop and then again after the workshop to measure differences in knowledge. The survey results from each country show that there has been an increase in knowledge of the various topics addressed. c. Training in Energy Data Management and Energy Balance Methodology implemented with the objective to address issues related to data gathering and aggregation of energy statistical information among the Caribbean countries d. OLADE gathered information from the beneficiary countries on their respective energy balance methodology, which was necessary to migrate the information to the latest OLADE & IRES methodology. Information was received, validated and published in the energy outlook for Belize, Guyana, Jamaica and Suriname. As no information was received from Grenada, the Grenada energy outlook was published based on OLADE projections, historical information from the sieLAC, and socio-economic information, such as indicators of population and GDP. 3. Activities under implementation / planned are (see details in attached revised work plan): a. Harmonization of the Methodology for Energy Balances with the IRES Methodology – International Recommendations for Energy Statistics. This method is currently being revised by the International Energy Agency (IEA). Therefore, capacity building and the National Energy Information Systems will be tailored according to the methodology -ongoing; b. Energy information system installation and configuration: Parametrization of the energy structure testing of the configuration and parametrization of the system – ongoing; c. Analysis and data gathering in each country, validation of energy information, review and validation of functional requirements – ongoing; d. Data input, quality control and consultation of the National Energy Information System – ongoing; e. Procurement of Software Licenses, hardware and software for development and production environment - planned; f. Official launch and dissemination of a guide focused on good practices for energy statistics management, energy balance elaboration, and systems implementation – planned. Component 3: Project Management and M&E 4. As part of this component, several activities have been executed. Tracking progress of the project implementation and coordination meetings with the director, consultants, and administrative staff. Procurement processes have followed World Bank policies. Allocation and use of resources have been done in an effective manner. Progress reports were prepared and submitted to the Bank in due time. Each month, the progress of the project regarding execution of activities and financial status has been monitored and reported from the project manager to the project coordinator. Any changes in the implementation of the project have been analyzed and approved by both the Project Coordinator and the TTL. Each country appointed a national energy focal point for the project. Owing to changes in the Government following the elections in Grenada, the focal point was only appointed in March 2019. The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) 5. The PDO remains highly relevant as its objectives are aligned with the World Bank priorities for small developing states regarding capacity enhancement on key data administration and infrastructure sector planned. Furthermore, the PDO is also aligned with the World Bank Caribbean Energy Infrastructure Facility Initiative and the CARICOM platform on Caribbean Sustainable Energy Roadmap and Strategy. Based on the achievements, which are further detailed above, it is likely that the PDO will only be achieved if a project closing date extension can be granted. 6. Fiduciary and other aspects. The project does not have any outstanding audit report. The Task Team confirms that (i) the PDO remains achievable; (ii) the performance of the Recipient (OLADE) remains satisfactory; (iii) the Bank and the Recipient agree on actions that will be undertaken to complete the project on time; and (iv) the project is not subject to suspension of disbursement. B. Rationale for Restructuring 7. The Mid-term Review (MTR) of the project was carried out in January/February 2019. OLADE and the beneficiary countries confirmed that the PDO remains relevant but that an extension of the closing date would be necessary to achieve it. The progress towards achievement of the PDO and the overall IP are currently rated Moderately Satisfactory and would be upgraded to Satisfactory if an extension is granted. 8. The World Bank has received a letter from OLADE on May 22, 2019 formally requesting a project closing date extension from September 16, 2019 to May 31, 2020 to allow OLADE and each beneficiary Ministry to complete the remaining planned activities so that the PDO will be achieved. In addition, the Bank has received letters from all 5 beneficiary countries on May 22, 2019 agreeing to this closing date extension request. 9. The reason for requesting the closing date extension is due to implementation delays. While the first component “Analysis of energy structure, institutional and regulatory framework“ is fully implemented, the implementation of the second component “Strengthening energy statistics system and capacity“ is delayed. The reasons are as follows: (a) After project approval, the project experienced 3 months effectiveness delays, which led to first disbursement delays. (b) OLADE also noted that the interaction with the focal points has been slower than expected. This is mainly due to lack of staff in each institution and delays in obtaining feedback, in particular from Grenada due to lacking focal point during the initial implementation phase. The focal point was only appointed in March 2019. (c) In addition to this, in the initial Project schedule, it was planned to have the procurement of the five servers finalized by August 2018. During project implementation, the harmonized Methodology for Energy Balances with the IRES Methodology – International Recommendations for Energy Statistics - was added to the project. There was a need to align OLADE’s methodology with IRES, the United Nations International Statistics Department and the International Energy Agency. With this inclusion, the schedule was updated, and these procurement activities have been rescheduled to 2019. (d) Furthermore, the procurement of the servers for the five countries is no longer feasible. There are three reasons for changing the location of the servers and licenses: (i) Initially, it was planned to have the servers and licenses in each of the beneficiary countries. However, based on the stakeholder interviews and OLADE’s visit of the Ministries in each beneficiary country, OLADE observed that the countries lack (i) the correct physical infrastructure (separate room for the server is required) to have the server installed, and (ii) IT administrator to maintain the server and the systems in terms of having the services up and running at all times. (ii) Having OLADE procure all servers and software, notably Windows Server and Windows SQL database, under the name of OLADE would have caused issues with Microsoft license ownership as the software would not be housed at OLADE but at different ministries. OLADE was not able to change the name with Microsoft due to Microsoft’s own rules and regulations. The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) (iii) There is a new trend in IT infrastructure to provide SAAS (software as a service) rather than the physical equipment. 10. As a result, OLADE will procure the Windows server (1) and the Windows SQL database that is going to be for the development and testing environment to be installed at the OLADE office, which has a separate server room. With the remaining funds (instead of 5 servers only 1 is needed), OLADE will buy 2 switches and 2 hard drives to improve their storage system, RAM memory and a firewall. This equipment will help OLADE to enhance the current IT infrastructure and give the countries the adequate services. OLADE would also be responsible for maintenance and back-ups beyond the project implementation as beneficiary countries are member countries of OLADE. Other remaining funds will be used to recruit national consultants for data collection and validation in the 5 countries to address the capacity gap in the beneficiary countries. II. DESCRIPTION OF PROPOSED CHANGES Project Closing Date: It is proposed to extend the project closing date from September 16, 2019 to May 31, 2020 (eight months). Results Framework: It is proposed to adjust the target end dates of all indicators in the results framework to the new proposed closing date of May 31, 2020. Implementation schedule will be adjusted accordingly. See details in Annex 2 and under component 2 above. I. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Loan Closing Date(s) ✔ Implementation Schedule ✔ Implementing Agency ✔ Project's Development Objectives ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Number of people trained on energy statistics management/planning (of which are women) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 76.00 75.00 Revised Date 01-Jul-2017 31-May-2019 31-May-2020 Enabled National Energy Information Systems Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 5.00 Revised Date 01-Jul-2017 31-May-2019 31-May-2020 Number of National Energy Information and Planning Units able to produce energy data reports in target countries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 5.00 Revised Date 01-Jul-2017 31-May-2019 31-May-2020 Intermediate Indicators IO_IND_TABLE Analysis of energy institutional and regulatory framework completed The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No Yes Yes Revised Date 01-Jul-2017 31-May-2019 31-May-2020 Energy forecast study completed Unit of Measure: Yes/No Indicator Type: Custom Baseline Actual (Current) End Target Action Value No No Yes Revised Date 01-Jul-2017 31-May-2019 31-May-2020 Grievances registered related to delivery of project benefits addressed (%) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 Revised Date 01-Jul-2017 31-May-2019 31-May-2020 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A5680 Effective 16-Sep-2019 31-May-2020 30-Sep-2020 The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) Annex 1: Implementation / Work Plan The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034) Annex 2: Procurement Plan The World Bank Caribbean Energy Statistics Capacity Enhancement (P155034)