Public Disclosure Copy The World Bank Implementation Status & Results Report MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) LATIN AMERICA AND CARIBBEAN | Mexico | Energy & Extractives Global Practice | Global Environment Project | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 17-Oct-2019 | ISR38685 | Implementing Agencies: SENER, United Mexican States Key Dates Key Project Dates Bank Approval Date: 06-Mar-2015 Effectiveness Date: 21-Sep-2015 Planned Mid Term Review Date: 31-Jan-2018 Actual Mid-Term Review Date: 05-Mar-2018 Original Closing Date: 31-Dec-2019 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to improve the institutional capacity of ACE technology institutions (both public and private)inthe territory of the recipient and to foster the commercialization of ACE technologies by providing financial incentives to the private sector, which together are expected to lead to GHG emissions reduction in the future. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Regional Needs Assessments for ACE technologies and Clean Energy Regional Investment Plans (CERIPs):(Cost $4.54 M) Grants and technical assistance for private enterprises in the ACE sector:(Cost $11.50 M) Project Management:(Cost $0.80 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project became effective in September 2015 and is under full implementation. Status of the activities for the three components is as follows: (i) All ten Regional Assessments under Component 1 are completed, and an ex-post analysis of their outcome is underway, (ii) a total of fifteen subprojects supported by the incentives or Premios under Component 2 are now under implementation, with some delays resulting from the change of federal administration, and (iii) Project Management activities (Component 3) are underway. 10/17/2019 Page 1 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- High High Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes To improve the institutional capacity of ACE institutions in Mexico IN00747954 ►CERIPs published. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 32.00 32.00 32.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 The Clean Energy Regional Investment Plans (CERIPs) are the key outcome of the Regional Assessments. As of December 3, 2018, all RNAs had been completed. 32 CERIPs have been designed, and publishing and dissemination is pending due to the change of administration. However, outcomes Comments: from the RNAs are now part of the "Ecosystem of Clean Energy in Mexico", a web platform that is public and that can be used to inform public policy, private investments, and research and development. To foster the commercialization of ACE technologies by providing financial incentives IN00747961 ►Capital Mobilized for Government programs or initiatives aimed at fostering clean energy innovation (public and private) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3,910,000.00 6,000,000.00 10/17/2019 Page 2 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 SENER provided an update for this indicator after reviewing programs and initiatives supported by sectorial funds with similar objectives to those of PRODETES (Clean energy innovation). SENER will Comments: provide regular updates during the bi-annual progress reports. GHG emissions reductions in the future IN00747955 ►Future emission reductions from ACE technologies supported by the Project (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,170,000.00 3,170,000.00 2,408,742.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 SENER provided an update for this indicator in December 2018. The 3.17 MtonCO2e are the potential, future emission reductions from the 15 projects that have been awarded with a Premio PRODETES after three calls for proposals. SENER estimated these reductions based on (i) the methodology outlined in annex 6 of the PAD and (ii) the actual technology that is being supported by the ACE program. Comments: It should be noted that this update represents an estimation, and, as reported in previous ISRs, actual emission reductions would materialize only if the supported technologies are widely disseminated and successfully commercialized (beyond the scope of PRODETES). Intermediate Results Indicators by Components Component 1. Regional Needs Assessments (RNAs) IN00747962 ►Number of high-relevance investment opportunities identified in Component 1 that could be potentially supported by national and/or international sources of financing (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 32.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 Before the change of administration in December 2018, SENER had already identified 847 potential investment opportunities from the 10 RNAs that were completed under Component 1. SENER narrowed the list down to a "short list" of 94 investment opportunities that could be deemed as "highly-relevant", as specified by the indicator. SENER's objective is to come up with a final list of 32 top-candidates, in order to meet this target. The team will update the indicator once that final list is developed (it was expected to Comments: be presented by SENER during the first semester of 2019 but there were delays due to the change of administration). The team will specifically request an update for this indicator in the next supervision mission, now that SENER has confirmed its commitment towards achievement of PDO and towards completion of all project-related activities. Component 2. Incentives for the Commercialization of ACE Technologies IN00747963 ►Number of recipients of TA (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55.00 55.00 24.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 10/17/2019 Page 3 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) In addition to the 15 awarded projects (5 from the first call for proposals, 4 from the second call, and 6 from the third call), SENER prepared and delivered a number of workshops targeted to applicants for Premios PRODETES, including training on business model development and legal aspects. Comments: The actual indicator value includes those 15 awarded projects as well as other projects from research centers, universities, and private sector companies whose proposals were not selected but that received TA during the proposal preparation stage. IN00747964 ►Number of patents or other industrial/intellectual property schemes for ACE technologies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 SENER has identified that at least three projects from the first call for proposals (Convocatoria 2016) can potentially apply for a patent or an equivalent industrial/intellectual property scheme. SENER is currently Comments: providing TA for those candidates, and is also in the process of identifying potential candidates from the second and third calls for proposals.This indicator will be updated during the next supervision mission. IN00747965 ►Number of female participants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 5.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 The target for this indicator has been met and passed. SENER reported that there are two female participants who are the legal representatives of two out of the six projects that were awarded in 2018, Comments: which brings the indicator to 7. Details will be provided in the bi-annual progress reports. IN00747966 ►Web based platform developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 09-Jul-2018 14-May-2019 24-Sep-2019 31-Dec-2019 Before the change of administration, this public platform was up and running, and consolidated all the information resulting from the RNAs (the information corresponding to the ex-post analysis would be included as soon as it became available). This platform constitutes a valuable depository of information for policy makers, entrepreneurs and private sector, and could be consulted in its dedicated website Comments: (https://oel.mx). A direct electronic link from SENER's website is still pending due to the Government transition. Public access (both from the dedicated website and from SENER's webpage) is still pending confirmation by the new administration. IN00747967 ►Number of incentives awarded, with at least 40% of them under the CCEC category. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 15.00 15.00 Date 30-Jun-2015 14-May-2019 24-Sep-2019 31-Dec-2019 The target of this indicator has been met. The first two calls for proposals resulted in 9 awarded projects, out of which 4 correspond to CCEC grants. The third call for proposals awarded 6 Premios PRODETES, Comments: out of which 5 correspond to CCEC grants). Updated (and final) indicator is thus 15 incentives awarded, with 9 (60%) under the CCEC category. IN00747968 ►Number of Commercialization Plans developed. (Number, Custom) 10/17/2019 Page 4 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 15.00 Date 10-Jul-2018 14-May-2019 24-Sep-2019 31-Dec-2019 SENER will provide TA to each beneficiary for them to develop their own plan to make their project commercially viable. To date, there are three drafts of such commercialization plans at an advanced Comments: stage. The other twelve plans will be developed throughout CY2019. IN00747969 ►Number of jobs created by the ACE program beneficiaries. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 10-Jul-2018 14-May-2019 24-Sep-2019 31-Dec-2019 SENER will monitor the number of direct and indirect jobs created by the ACE program beneficiaries during the development of their projects. It is expected that each beneficiary will create at least 1 Comments: direct/indirect job with counterpart resources. SENER will provide an update in the upcoming progress report, which will include those projects that were awarded in 2018 (third call for proposals). IN00747970 ►Number of safeguards follow-up plans developed and in place. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 10-Jul-2018 14-May-2019 24-Sep-2019 31-Dec-2019 Each ACE program beneficiary will develop and enforce an environmental and social safeguards follow-up plan for their corresponding sub-projects. SENER prepared a template to be used by all 15 awarded projects, and was sent to the Bank for revision and comments in November 2018. The Bank provided comments and feedback by mid-November 2018, and approved a final version in early 2019. It Comments: was expected that the safeguards plans would be prepared, finalized and implemented by mid 2019, but due to the observed delays resulting from the change of administration, these plans are now expected by end of 2019. However, 9 of those drafts are near completion. IN00747971 ►Registered grievances satisfactorily resolved in line with the Grievance Redress Mechanism (GRM) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 11-Jul-2018 14-May-2019 24-Sep-2019 31-Dec-2019 The project has a dedicated outreach mechanism for Component 2 (Incentives to the private sector for the commercialization of ACE technologies, or Premios PRODETES, as they are known in Spanish), which consists of a specific website (www.premioprodetes.mx) for the dissemination of relevant information, including the call for proposals and the corresponding deadlines. The PRODETES website also features a contact tab that is open to the public, and by which interested stakeholders can submit questions or Comments: complaints. In addition to the existing email account reported in the previous ISR (info@premioprodetes.mx), SENER created two separate email accounts for the third call for proposals (Convocatoria 2018): soporte@premioprodetes.mx and quejas@premioprodetes.mx. Such dedicated mechanism is still in place, and all received inquiries are being responded to/addressed. Data on Financial Performance 10/17/2019 Page 5 of 6 Public Disclosure Copy The World Bank Implementation Status & Results Report MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P145618 TF-19403 Effective USD 16.88 16.88 0.00 7.33 9.55 43% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145618 TF-19403 Effective 06-Mar-2015 08-May-2015 21-Sep-2015 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 06-Dec-2016 ,Level 2 Approved on 29-Aug-2018 Related Project(s) There are no related projects. 10/17/2019 Page 6 of 6