The World Bank Mexico (CRL) Integrated Energy Services (P088996)

Transcription

1 Public Disclosure Authorized Public Disclosure Copy LATIN AMERICA AND CARIBBEAN Mexico Energy and Mining Global Practice IBRD/IDA Specific Investment Loan FY 2008 Seq No: 15 ARCHIVED on 30-Dec-2014 ISR17230 Implementing Agencies: Secretaría de Energía Public Disclosure Authorized Key Dates Key Project Dates Board Approval date:17-jan-2008 Planned Mid Term Review Date:-- Original Closing Date:30-Jun-2013 Project Development Objectives Effectiveness Date:16-Jul-2009 Actual Mid-Term Review Date:25-Mar-2011 Revised Closing Date:30-Apr-2015 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) Increase access to efficient and sustainable integrated energy services in predominantly indigenous rural areas of Mexico Has the Project Development Objective been changed since Board Approval of the Project Objective? No MX-GEF Integrated Energy Services (P095038) Global Environmental Objective (from Project Appraisal Document) To achieve reduction of greenhouse gas emissions through the use of renewable energy in rural areas for the provision of electricity. Public Disclosure Authorized Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name Part 1. Policy, Regulation and Strategy:(Cost $4.10 M) Part 2. Rural Energy Subprojects:(Cost $ M) Technical Assistance for Rural Energy (Previously Part 3) - DROPPED Part 3. Promotion and Technical Assistance to Increase Productive Uses of Electricity:(Cost $6.00 M) Page 1 of 10

2 Part 4. Project Management:(Cost $1.64 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating -- Moderate Implementation Status and Key Decisions The Integrated Energy Services Project is part of the Government of Mexico's flagship rural electrification program, which aims to increase electricity supply through (i) expansion of conventional distribution networks and (ii) use of renewable energies. The Project would provide approximately 86 communities in predominantly indigenous rural areas with solar-based electricity (of which services to approximately 40 communities would be financed by Bank and GEF funds). The Federal Electricity Commission (Comisión Federal de Electricidad, CFE) has finalized 2 pilots in Guaycora, Sonora and La Ciénega, Nayarit, benefiting about 200 inhabitants. Such pilot projects have had a considerable impact on the daily lives of beneficiaries, by opening the way for (i) storing food/medicine in refrigerators, (ii) improving education through multimedia/electronic tools, and (iii) carrying out evening activities where lighting is needed, like sewing, reading, adult education, etc. The Project is progressing well, with the following milestones achieved by November 2014: (i) 15 solar farms corresponding to the first and second bidding processes in operation; (ii) 10 solar farms corresponding to the third bidding process under construction and near completion, and (iii) a fourth bidding process under evaluation to determine the winning bid. The disbursement rate stands at 10.67% for loan IBRD (with 88.24% committed) and at 25.60% for GEF grant TF91733 (with 53.36% committed). The closing date for the project was extended by 10 months (until April 30, 2015), with the purpose of allowing CFE (as the executor and operator of the rural energy subprojects) to complete two pending bidding processes (out of four), and to complete the construction of approximately 35 solar farms corresponding to four bidding processes. Key Decisions for Disclosure The team is maintaining the PDO, GEO and IP indicators as Moderately Satisfactory (MS), as a result observed progress. Disbursements are expected to steadily continue since three bidding processes have concluded and a fourth process is near completion. Page 2 of 10

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4 Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Macroeconomic Moderate Sector Strategies and Policies Moderate Technical Design of Project or Program Low Institutional Capacity for Implementation and Sustainability Moderate Fiduciary Low Environment and Social Substantial Stakeholders Moderate Other Overall Moderate Results Project Development Objective Indicators Number of HH electrified with RET. (Text, Custom) Value ,432 Date 22-Jul Apr Nov Apr-2015 Page 4 of 10

5 The target of 4,432 HH electrified corresponds to the entire electrification program, i.e., 86 locations (Bank and GEF funds will support approximately 40 locations). CFE has reported that the federal electrification program has only recently started with three locations outside the PSIE project. However, it is unlikely that the locations outside the PSIE project will be electrified by the current closing date of April 2015, and thus the indicator should be adjusted to include also an indicator on locations financed by PSIE - the target would be 1855 households and the project is therefore on track to achieve this target since it is connecting households in the first three bidding processes. CFE has focused on the locations of the state of Durango (all of them included in the RP of October 2012), where the project has been widely accepted by the communities and has been supported by the Government of Durango. Costs per New Connection (USD/HH). (Text, Custom) Value 1, ,300 1,097 Date 22-Jul Apr Nov Apr-2015 This cost is the average for locations corresponding to the first three bidding processes according to the data provided by CFE. The target must be revised as the original project envisioned 34,000 individual PV with individual systems of 100 Wp each, while the new system assumes 1,200 Wp / HH (centralized solar farms where one unique facility serves the entire community). A more representative cost is USD per installed kwp, which according to CFE s data is 12,461 USD/kWp (average of the first three bids) assuming an exchange rate of 13.5 MXN per USD. For comparison purposes, the cost for the pilot project in Guaycora was approximately USD 14,750 USD/kWp. High costs are mainly due to the fact that (i) the system is equipped with a very advanced telecommunication system, that allows CFE to operate the farms remotely, (ii) the famrs are operating almost continuously due to very high capacity of the battery, and the system is required to continue to operate even with two consecutive days of clouds. According to CFE and SENER, the aim is to provide electricity to the communities at a service quality that is comparable to grid service. Installed capacity (Text, Custom) Value ,205 Date 22-Jul Apr Nov Apr-2015 The target of 6,205 kw installed capacity corresponds to the entire electrification program, i.e., 86 locations (Bank and GEF funds will support approximately 40 locations). CFE has reported that the federal electrification program has recently started with three locations outside the PSIE project in addition to the two pilot projects. However, it is unlikely that the locations outside the PSIE project will be electrified by the current closing date of April 2015, and thus the indicator should be adjusted to include also an indicator on the PSIE locations only. Page 5 of 10

6 Incremental increase in MWh/year of electricity consumed for productive uses in targeted communities (MWh/year). (Text, Custom) Value ,768 Date 22-Jul Apr Nov Apr-2015 Data for productive uses is not yet available and indicator will have to be reviewed- maybe annualized- since it's based on a yearly indicator, and none of the farms will have operated an entire year before closing of the project. Number of new social/productive activities and micro-businesses developed. (Text, Custom) Value ,308 Date 22-Jul Apr Nov Apr-2015 Data for productive uses is not yet available. Access to the sites has been more difficult. CFE committed to provide information in the next two months. Total RET energy consumption per household in MWh/year (Text, Custom) Value ,077 Date 08-Nov Apr Nov Apr-2015 Data is not yet available and indicator will have to be adjusted - maybe annualized - since none of the farms will have operated one year before the project closing date. People provided with access to electricity by hold connections-other RE: Off-grid (Number, Core) Page 6 of 10

7 PHINDGEOTBL PHINDIRITBL Public Disclosure Copy Value Date Apr Nov Apr-2015 The end target should be revised (according to the RP of October 2012, a total of 17,578 residents should benefit from the program) and a PSIE-financed indicator should be added. Since the federal electrification program (solar farms outside PSIE) has recently started, it is unlikely that the 50 farms to be financed outside PSIE might be completed by the current closing date of April Therefore, the target should be adjusted to reflect this situation and a PSIE target should be added, which should be 7,358. As of December 2014, 4,226 inhabitants have been connected through the first three bidding processes. Another 1,839 are expected to be connected through the fourth bidding process, and two additional bidding processes are expected to be launched, making the final target of 7,358 achievable. Overall Global Environmental Objective Indicators Emissions Reduction (thousand tones CO2e) (Text, Custom) Value Date 22-Jul Apr Nov Jun-2014 Emissions can be estimated once CFE starts submitting billing/consumption information using fossil-fuel based energy displacement. Overall Intermediate Results Indicators PPMT/SPICs/PAC/PC/TSMG operational. (Text, Custom) Value None Not applicable Not applicable No longer applicable Date 22-Jul Apr Nov Jun-2014 Page 7 of 10

8 PHINDIRITBL PHINDIRITBL Public Disclosure Copy The project was restructured in October 2012 to address complex technical constraints and institutional arrangements that delayed implementation and disbursements. Since the national utility CFE is executing the rural energy subprojects, the following operationalagencies are no longer relevant under the restructured arrangements: - PPMT (Program Planning and Management Team). Instead, a Project Administrative Unit within SENER has been established and is in operation. - SPIE (State Project Implementation Committee) - PAC(Project Advisory Committee) - PMC (Project Monitoring Committee) - TSMG (Technical Supervision and Monitoring Group). The team will restructure the project to drop this indicator. Design bidding documents. (Text, Custom) Value None Three bidding documents have been designed. Four bidding documents have been designed. The project has achieved 100% of target. Four bidding documents. Date 22-Jul Apr Nov Jun-2014 Three bidding processes have been successfully completed. The fourth bidding process was successfully launched and it is near completion (proposals are under evaluation to select the winner. Documents for a fifth bidding process are under review by the team. Issuance of technical guidelines. (Text, Custom) Value None Three bidding processes (including technical specifications) have been launched. Four bidding processes (including technical specifications) have been launched. Technical specifications for four bidding documents Date 22-Jul Apr Nov Jun-2014 Three bidding processes have been successfully completed. The fourth bidding process was successfully launched and it is near completion (proposals are under evaluation to select the winner. Documents for a fifth bidding process are under review by the team Page 8 of 10

9 PHINDIRITBL PHINDIRITBL Public Disclosure Copy Baseline Impact Evaluation. (Text, Custom) Value None Three assessments Three assessments Three assessments Date 22-Jul Apr Nov Jun-2014 Three consulting services have been contracted in March 2014 to carry out social safeguards assessment in several rural communities. The communities to be assessed are: San José de la Cruz, Curachitos, San Buenaventura, El Zancudo Uno, Ojos Azules, Ceja de Cebolleta, Tepalcates, Canoitas-Canoas Dos and la Sierrita (Durango), and San José de Carranza (Coahuila). Deliverables have been accepted by SENER. Medium Term Impact Evaluation Assessment. (Text, Custom) Value None Date 22-Jul Apr Apr Jun-2014 NEEDS TO BE UPDATED Overall Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P IBRD Effective USD % P TF Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P IBRD Effective 17-Jan Dec Jul Jun Apr-2015 Page 9 of 10

10 P TF Effective 05-Dec Dec Oct Jun Apr-2015 Cumulative Disbursements Restructuring History Level Approved on 06-Nov-2012,Level 2 Approved on 04-Jun-2014 Related Project(s) P MX-GEF Integrated Energy Services Page 10 of 10