Implementation Status & Results Brazil Energy Sector Technical Assistance Project (P076977)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Brazil Energy Sector Technical Assistance Project (P076977) Operation Name: Energy Sector Technical Assistance Project (P076977) Project Stage: Implementation Seq.No: 19 Status: ARCHIVED Last Modified : 16-Nov-2010 Country: Brazil Approval FY: 2003 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Mines and Energy Key s Board Approval 24-Jun-2003 Original Closing 31-Dec-2007 Planned Mid Term Review Last Archived ISR 18-Jun-2010 Effectiveness 29-Oct-2004 Revised Closing 15-Dec-2010 Actual Mid Term Review 13-Mar-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) The central objective of the ESTAL is to help ensure the sustainable implementation of the GOB's continuing energy sector reform program through studies and capacity building activities aimed to: (1) develop energy market to expand private sector participation and competition, (2) make modern energy sources available and affordable to poor, (3) ensure long term environmental sustainability of power sector development, (4) improve long-term expansion planning, and (5) strengthen policy making and implementation capacity. Detailed performance indicators are included in the Annex. Has the Project Development Objective been changed since Board Approval of the Project? Yes No losure Authorized Public Disclosure Authorized Component(s) Component Name Component Cost MARKET DEVELOPMENT AND REGULATION 2.89 ELECTRICITY ACCESS AND AFFORDABILITY FOR THE POOR 1.14 ENVIRONMENTAL MANAGEMENT 1.87 LONG-TERM EXPANSION PLANNING 1.85 INSTITUTIONAL STRENGTHENING AND COODINATION 3.05 PROJECT MANAGEMENT 0.00 RESERVE 1.20 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Page 1 of 9

2 Implementation Status Overview The project has made significant progress towards achieving its development objectives. Among other achievements serving the development objectives, it substantiated the tariff review process of privatized distribution companies, it developed GIS data, training activities and evaluated subsidy options to make electricity affordable to the rural poor, it performed an evaluation of the environmental licensing for hydro energy and generated an updated version of the Inventory Handbook facilitating the integration of low cost renewable energy potential, it substantiated the elaboration of the National Long Term 2030 Energy Plan and the modernization of the National Department of Mining. Results Project Development Objective Indicators Develop energy market to expand private sector participation and competition. Regulatory framework provides insufficient incentives for private sector participation Direct contracting practices for power provision are preferred because of high complexity of deals. Second generation of sector reform implemented, including new auction mechanism of private sector participation. ESTAL studies on the two large Rio Madeira powerplants helped the Government decide for competitive bidding process, thus allowing for greater privateparticipation. ESTAL funded studies helped adjusting the regulatory framework. Both Sto Antonio and Jirau were awarded to privateconsortiums with much lower price ($79 and $72 Reais/MWh) than ceiling (BR $120, around BR$1billion per Increased private sector investments and participants. Page 2 of 9

3 Foster access to energy for the poor. Status in 2002 : number households not connected estimated at 2,4million, or 5.2% of households Luz para Todos national rural electrification program faces difficulties to reach out to specific categories of communities (the most distant and the descendants of slaves # Quilombos) From 2004 to 2009, 2 million Higher percentage of poor have households or 83% of non access to and can afford modern connected households in the base energy services. year were connected, an increase of 4.3% oftotal connected households (per the 2002 baseline). ESTAL funded studies helped improve implementation of Luz para Todos in distant and quilombos communities. : Attribution of outcomes on access to the Project is difficult. Significant investments to provide these connections were implemented outside of the project, but project contribution to the method of implementation was significant. Page 3 of 9

4 Ensure long term environmental sustainability of power sector development. Cumbersome and lengthy environmental licensing processes impede new hydropower plant development. No new large hydro powerplant since 1984 (Tucurui) Studies on environmental licensing completed and being discussed among government agencies. Revision of the environmental licensingprocedures initiated; recommendations for improving environmental licensing process adopted. For the first time in twenty years, two large hydro powerplants (Santo Antonio and Jirau) were awarded environmental licenses in 2007 and Licenses granted in a timely and transparent manner. Environmental and social impacts assessed, with appropriate actions plans to avoid, mitigate or compensate at project concept stage. Improve adequate long-term energy sector expansion planning Sub- Supplemental No Energy Planning since 1998 This objective has been largely achieved. Empresa de Pesquisa em Energia (EPE), a public agency for energy planning created in Long Term Expansion plan d eveloped by EPE and Ministry of Energy (10 and 30 years), with MME expertise fin anced by the project. EPE regularly updates both medium and a long term energy p lan and provides guidance for energy auctions for private sector participation Cyclically updated, long term expansion plans are available and guide private se ctor investment decisions, resulting in adequate and sustainable energy supply w ith no more rationing. Page 4 of 9

5 Improve adequate long-term energy sector expansion planning. No Energy Planning since 1998 no baseline value was entered. This objective has been largely achieved. Empresa de Pesquisa em Energia (EPE), a public agency for energy planning created in Long Term Expansion plan developed by EPE and Ministry of Energy (10 and 30 years), with MME expertise financed by the project. EPE regularly updates both medium and a long term energy plan and provides guidance for energy auctions for private sector participation. Cyclically updated, long term expansion plans are available and guide private sector investment decisions, resulting in adequate and sustainable energy supply with no more rationing. Strenghten policy making and implementation capacity. Project has strengthened MME's Energy and environment-related policy making capacity through the policies, regulations and provision of senior advisors and procedures aredesigned and staff training and information implemented in a coordinated systems to support implementation fashion and are effective to foster and supervision by the Ministry, competition, sustainability and both in the area of energy and private sector. mining. This has resulted in better environment related policies particularly in environmental licensing, in greater competition and in the avoidance of further rationing as seen in Intermediate Results Indicators Page 5 of 9

6 Foster market development and regulation. Necessity to improve the first Sector reform generation to better prevent rationing Studies under the project such as Transparent pricing, timely tax law evaluation, environmental financial settlements. Increased licensing,and a large study demand response and mitigate underpinning 2nd generation of risks to power projects. ANEEL regulatory reforms contributed to strengthened. improvements in pricing mechanisms and mitigated risks to power projects. The project also provided just in time advice to ANEEL. Improve Energy access and affordability of energy services for the poor through rural electrification and a lifeline tariff. In 2002, number of not connected households in Brazil was estimated at 2,4million 1 studies completed: low-income subsidies. 4 rural electrification studies comp leted, capacity bldg Quilombolas, which helped in the improvement of Luz para Todos implementation in certain categories of rural communities, 1 canceled: on PRODEEM Credible targets and cost-effective implementation plan for universal service fr om accurate baseline data. Funding mechanism and affordable tariffs, based on equitable threshold for lifeline rates. Page 6 of 9

7 Streamline the environmental licensing process, ensure proper consideration of the env. and social impact of system expansion, analyze and address climate change, and ensure monitoring and evaluation. Cumbersome and lengthy environmental licensing processes. Studies on environmental licensing completed and being discussed among government agencies, environmental licensing procedures revised; some recommendations for improving environmental licensing process adopted. Several ESTAL funding studies to identify sites and conditions for renewable energy projects, in particular possible candidate to PROINFA, the national program for renewable energy projects investment Sound & timely licensing process in place, imprvd assessment manuals & method, b etter treatment of env./social impacts balancing expansion and env. goals, and i ncorporated in private sector planning. Revise system expansion methodologies, update river basin inventories and identify potential location for thermal plants. The Manual for identifying the Potential for Hydro Power Plants was outdated with respect to technology and environment aspect. Need to improve transmission network monitoring procedures. No base line value was added at entry level. 8 studies completed: Rio Madeira. phase-based monitoring of SIN, river basin inventory models. +6 consultancies being contracted: large hydro integration, transmission line, demand/supply model. Revision of the Potential Hydro Power plants inventory Manual financed by ESTAL Sound power generation expansion plans being developed, taking into account envi ronmental and social criteria, as well as supply and demand side alternatives. Page 7 of 9

8 Restructure MME and strengthening in integrated planning, energy efficiency, alternative technologies, mines and metallurgy, Oil and Gas, international cooperation and rural electrification Need to reform the Mining sector and to adjust accordingly the Restructuring of the National Mineral Department (DNPM) No Energy Planning exercise SINCE no baseline value was entered at entry point 8 studies completed: Exec Info MME effective reorganization & Sys, secondary gas market improved response to emergencies feasibility. EE&PROINFA. - better coordination with Improvement of environmental water&env agencies. Units trained, licensing process (participation of update comprehensive NRJ plan & MME) sustainable EE/renewable energy. Restructuring of the National Mineral Department (DNPM) (regulatory body) of MME. Training program of DNPM staff financed by ESTAL. One large consultancy being completed to develop a Gov Information Syst for energy sector. Data on Financial Performance (as of 01-Dec-2010) Financial Agreement(s) Key s Project Loan No. Status Approval Signing Effectiveness Closing P IBRD Effective 24-Jun Sep Oct Dec-2010 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD Disbursement Graph Page 8 of 9

9 Key Decisions Regarding Implementation None Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 9 of 9