The World Bank Report No: ISR13990 Implementation Status & Results Mexico Mexico (CRL) Integrated Energy Services (P088996) Public Disclosure Copy Operation Name: Mexico (CRL) Integrated Energy Services (P088996) Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive Date: 29-Apr-2014 Country: Mexico Approval FY: 2008 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Secretaría de Energía Key Dates Board Approval Date 17-Jan-2008 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date Last Archived ISR Date 16-Feb-2014 Effectiveness Date 16-Jul-2009 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 25-Mar-2011 Project Development Objectives Mexico (CRL) Integrated Energy Services (P088996) 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 Program? Yes 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. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Component(s) Public Disclosure Copy Component Name Component Cost Part 1. Policy, Regulation and Strategy 4.10 Part 2. Rural Energy Subprojects 110.05 Technical Assistance for Rural Energy (Previously Part 3) - DROPPED 0.00 Part 3. Promotion and Technical Assistance to Increase Productive Uses of Electricity 6.00 Part 4. Project Management 1.64 Overall Ratings Previous Rating Current Rating Page 1 of 7 The World Bank Report No: ISR13990 Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Progress towards achievement of GEO Moderately Unsatisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview 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, through (i) the possibility of storing food/medicine in refrigerators, (ii) the possibility of improving education through multimedia/electronic tools, and (iii) the possibility of carrying out activities where lighting is needed, like sewing, reading, etc. The Project is progressing well with the construction of the first five solar farms almost completed and two additional bidding processes in progress. The first disbursement of the project became effective on March 12th 2014. Locations Country First Administrative Division Location Planned Actual Mexico Oaxaca Estado de Oaxaca ✔ Mexico Guerrero Estado de Guerrero ✔ Mexico Chiapas Estado de Chiapas ✔ Mexico Sonora Estado de Sonora ✔ Mexico San Luis Potosi Estado de San Luis Potosi ✔ Mexico Nayarit Estado de Nayarit ✔ ✔ Public Disclosure Copy Mexico Durango Estado de Durango ✔ ✔ Mexico Coahuila Estado de Coahuila de Zaragoza ✔ ✔ Mexico Chihuahua Estado de Chihuahua ✔ ✔ Results Project Development Objective Indicators Page 2 of 7 The World Bank Report No: ISR13990 Indicator Name Core Unit of Measure Baseline Current End Target Number of HH electrified with RET. Text Value 0 4,432 Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Public Disclosure Copy Comments Solar farms have not yet started to operate. Costs per New Connection (USD/HH). Text Value 2,400 1,097 Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments Solar farms have not yet started to operate. Number of Households Electrified. Text Value 0 6,205 Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments Solar farms have not yet started to operate. Incremental increase in MWh/year of electricity Text Value 0 5,768 consumed for productive uses in targeted Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 communities (MWh/year). Comments Solar farms have not yet started to operate. Number of new social/productive activities and Text Value 0 1,308 micro-businesses developed. Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments Solar farms have not yet started to operate. Total RET energy consumption per household Text Value 0 2,077 in MWh/year Date 08-Nov-2012 08-Apr-2014 30-Jun-2014 Comments Solar farms have not yet started to operate. People provided with access to electricity by Number Value 0.00 0.00 3500.00 hold connections-Other RE: Off-grid Date 08-Apr-2014 30-Jun-2014 Comments Solar farms have not yet Public Disclosure Copy started operations. Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Emissions Reduction (thousand tones CO2e) Text Value 0 0 241 Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments Solar farms have not yet started to operate. Page 3 of 7 The World Bank Report No: ISR13990 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target PPMT/SPICs/PAC/PC/TSMG operational. Text Value None Not applicable No longer applicable Public Disclosure Copy Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments 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. Public Disclosure Copy Design bidding documents. Text Value None Three bidding documents Four bidding documents. have been designed. Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments Works corresponding to the After the restructuring, first bidding process are near SENER, CFE and the IBRD completion. The second agreed on launching a total of bidding process has been four bidding processes. The awarded and offers from the date for end target hasbeen third bidding process are adjusted to reflect that bidding under evaluation. The bidding documents evolve based on Page 4 of 7 The World Bank Report No: ISR13990 documents for the fourth and lessons learned and thus the last bidding process are under indicator can be considered preparation. as met until the last bidding document is finalized. Public Disclosure Copy Issuance of technical guidelines. Text Value None Three bidding processes Technical specifications for (including technical four bidding documents specifications) have been launched. Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments Works corresponding to the After the restructuring, first bidding process are near SENER, CFE and the IBRD completion. The second agreed on launching a total of bidding process has been four bidding processes. The awarded and offers from the date for end target hasbeen third bidding process are adjusted to reflect that bidding under evaluation. The bidding documents (including the documents for the fourth and technical specifications) last bidding process are under evolve based on lessons preparation. learned and thus the indicator can be considered as met until the last bidding document is finalized. Baseline Impact Evaluation. Text Value None Three assessments Three assessments Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Comments 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 Public Disclosure Copy Buenaventura, El Zancudo Uno, Ojos Azules, Ceja de Cebolleta, Tepalcates, Canoitas-Canoas Dos and la Sierrita (Durango), and San José de Carranza (Coahuila). Medium Term Impact Evaluation Assessment. Text Value None 1 1 Date 22-Jul-2008 08-Apr-2014 30-Jun-2014 Page 5 of 7 The World Bank Report No: ISR13990 Comments The first bidding process was launched in March 2013. Thus the team has postponed the medium term impact Public Disclosure Copy evaluation assessment until solar farms start operating. Terms of reference should be discussed during the next supervision mission. Data on Financial Performance (as of 12-Mar-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P088996 IBRD-75010 Effective 17-Jan-2008 05-Dec-2008 16-Jul-2009 30-Jun-2013 30-Jun-2014 P095038 TF-91733 Effective 05-Dec-2008 05-Dec-2008 14-Oct-2009 30-Jun-2013 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P088996 IBRD-75010 Effective USD 15.00 15.00 0.00 1.60 13.40 11.00 P095038 TF-91733 Effective USD 15.00 15.00 0.00 0.20 14.80 1.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR13990 Key Decisions Regarding Implementation The team is upgrading the PDO, GEO and IP indicators to Moderately Satisfactory (MS) as a result of effectiveness of first disbursement on March 12th 2014 (USD 1.564 million, or 10.4% of loan IBRD 75010). The disbursements are expected to steadily continue since three out of four bidding processes are in progress. Public Disclosure Copy Restructuring History Level two Approved on 06-Nov-2012 Related Projects P095038-MX-GEF Integrated Energy Services Public Disclosure Copy Page 7 of 7