The World Bank Report No: ISR9186

Implementation Status & Results HN Rural Infrastructure Project (P086775)

Operation Name: HN Rural Infrastructure Project (P086775) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 10-Feb-2013 Country: Honduras Approval FY: 2006

Public Disclosure Authorized Product Line:IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Jul-2005 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date Last Archived ISR Date 20-Jun-2012 Public Disclosure Copy Effectiveness Date 04-Aug-2006 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date

Project Development Objectives HN Rural Infrastructure Project (P086775) Project Development Objective (from Project Appraisal Document) The project development objectives are (i) to improve access, quality and sustainability of infrastructure services (roads, water & sanitation, and electricity) for the rural poor in Honduras; and (ii) to develop capacities and enabling environment for locally-driven service provision and planning. Has the Project Development Objective been changed since Board Approval of the Program?

Public Disclosure Authorized Yes No

Rural Electrification Project (P090113) Global Environmental Objective (from Project Appraisal Document) The GEF project development objectives are: (i) improving access, quality and sustainability of electricity services through the development of offgrid electrification model projects, and (ii) developing capacities and enabling environment for offgrid electrification in a decentralized setting.

The project's global environmental objective is to achieve greenhouse gas (GHG) reductions through the reduction of policy, informational, financing and institutional capacity barriers that currently hinder renewable energy technology (RET) dissemination and market development in Honduras Has the Global Environmental Objective been changed since Board Approval of the Program?

Yes No

Public Disclosure Authorized Component(s)

Component Name Component Cost Participatory local planning 1.30 Infrastructure Service Delivery 40.20

Public Disclosure Copy Local Capacity Building and Policy Development TA 3.50 Project management, monitoring and evaluation 2.00

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Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Overall Risk Rating

Implementation Status Overview The project has made significant advances during the last months to continues to be in a good position to achieve its development objectives. All integrated rural infrastructure investment plans are approved and of the more than 300 infrastructure sub-projects commissioned 276 are completed. most of the infrastructure sub-projects are either completed or

Public Disclosure Copy under execution. Greater attention is now being paid to ensure the Sustainability of the investments and the provision of the infrastructure services have been given greater attention in the last months with several capacity building sessions and technical support to strengthen the sustainability of the investments undertaken. The positive impacts of the integrated investments in the three sectors on rural livelihoods are evident and well recognized by the government at all levels, by local stakeholders, and by direct beneficiaries.

The project has achieved a cumulative level of disbursements of 94% (US$44.26 million) for the credit and 75% (US$1.79 million) for the grant. The project is expected to disburse the full grant amount by 31 December 2012 and the full credit amount by April 2013. Since the beginning of 2011 the project showed a high level of project execution leading to the disbursement of an amount of US$18.5 million from the credit. Recent months have seen a high level of project execution and efficiency in disbursement and completion of infrastructure sub-projects.This in part is due to the advanced stage of project execution where a significant amount of sub-projects designs and studies had been prepared and ready to be implemented; but also because of effective project implementation where previously bottlenecks had been identified and now addressed by the project implementation unit. Some components have not only achieved their targets and implementation indicators but continued beyond the component targets since high demand has continued. The project is due to close in June 2013 after the project extension request was approved last year.

Locations Country First Administrative Division Location Planned Actual Honduras Departamento de Olancho Yocon

Honduras Departamento de Santa Barbara Trinidad

Honduras Departamento de Olancho

Honduras Departamento de Ocotepeque Sensenti

Honduras Departmento de La Paz Santiago Puringla

Honduras Departamento de Copan Santa Rita

Honduras Departmento de La Paz Santa Maria

Honduras Departamento de Choluteca Santa Ana de Yusguare

Honduras Departmento de La Paz San Pedro de Tutule Public Disclosure Copy Honduras Departamento de Copan San Nicolas

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Country First Administrative Division Location Planned Actual Honduras Departamento de Choluteca San Marcos de Colon

Honduras Departamento de Santa Barbara San Marcos

Honduras Departamento de Santa Barbara San Luis

Honduras Departamento de Santa Barbara San Jose de Colinas

Honduras Departmento de La Paz San Jose

Honduras Departamento de Copan San Jeronimo

Public Disclosure Copy Honduras Departamento de Copan San Antonio

Honduras Departamento de Olancho Salama

Honduras Departamento de Santa Barbara Petoa

Honduras Departamento de Choluteca

Honduras Departamento de Copan Nueva Arcadia

Honduras Departmento de La Paz Marcala

Honduras Departamento de Olancho

Honduras Departamento de Ocotepeque Lucerna

Honduras Departamento de Olancho La Union

Honduras Departmento de La Paz La Paz

Honduras Departamento de Ocotepeque La Labor

Honduras Departamento de Copan La Jigua

Honduras Departamento de Olancho La

Honduras Departamento de Olancho

Honduras Departamento de Olancho

Honduras Departamento de Ocotepeque Fraternidad

Honduras Departamento de Copan Florida

Public Disclosure Copy Honduras Departamento de Olancho

Honduras Departamento de Olancho El Rosario

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Honduras Departamento de Copan El Paraiso

Honduras Departamento de Choluteca

Honduras Departamento de Choluteca

Honduras Departamento de Ocotepeque Dolores Merendon

Honduras Departamento de Copan Copan Ruinas

Honduras Departamento de Olancho Concordia

Honduras Departamento de Choluteca Concepcion de Maria Public Disclosure Copy Honduras Departamento de Santa Barbara Concepcion del Norte

Honduras Departamento de Santa Barbara Chinda

Honduras Departmento de La Paz Chinacla

Honduras Departmento de La Paz Cane

Honduras Departamento de Olancho Campamento

Honduras Departamento de Copan Cabanas

Honduras Departamento de Choluteca

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Direct project beneficiaries Number Value 0.00 391672.00 423987.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments Female Beneficiaries Percentage Value 0.00 50.00 50.00 Sub Type Supplemental Generation capacity of renewable energy Megawatt hour Value 0.44 0.54 constructed under the project (MW) (MWh) Date 31-Dec-2012 30-Jun-2013 Comments Public Disclosure Copy

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Micro-enterprises for road maintenance trained Number Value 8.00 6.00 on technical standards and entrepreneurial Date 31-Dec-2012 30-Jun-2013 practices Comments Roads rehabilitated, Municipal kilometers Kilometers Value 15.35 14.00 program (kilometers) Date 31-Dec-2012 30-Jun-2013 Comments New household sewerage connections that are Number Value 8484.00 2080.00 resulting from the project intervention Date 31-Dec-2012 30-Jun-2013 Comments Value

Public Disclosure Copy Share of rural population with access to an all- Percentage 30.00 40.00 45.00 season road Date 12-Dec-2012 30-Jun-2013 Comments To be measured at the conclusion of the project Number of rural people with access to an all- Number Value 0.00 164653.00 164653.00 season road Sub Type Supplemental Number of people in rural areas provided with Number Value 0.00 56736.00 51498.00 access to Improved Water Sources under the Date 01-Aug-2006 31-Dec-2012 30-Jun-2013 project Comments % population in target areas with access to Text Value 62 water and sanitation, provided with quality and Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 sustainability (Cra and Chorti). Comments This will be measured at the conclusion of the project Access to sanitatino Number Value 29850.00 47000.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments 21,366 beneficiaries of latrines 8,484 beneficiaries with access to sewage % population in target areas with access to Text Value 33 electricity service, provided with adequate Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 quality and sustainability (Cra and Chorti). Comments This will be measured at the conclusion of the project Number of people provided with access to Number Value 72654.00 75260.00

Public Disclosure Copy power electricity under the project by Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 household connections Comments

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access to off-grid electricity Number Value 34964.00 32800.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments Value of contracts successfully procured by Text Value 0 21.2 US$25 million UTIs (cumulative) Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments This is for all 6 mancomunidades Kilometers under routine roadmaintenance Kilometers Value 593.00 430.00 Date 07-Jul-2005 11-May-2012 30-Jun-2013 Comments 2 additional micro-enterprises Public Disclosure Copy started up in January 2012

Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target slaes of accredited solar companies Amount(USD) Value 5380107.00 4800000.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments community renewable energy installations Number Value 71.00 100.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments households with solar systems installed Number Value 5000.00 5000.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments village micro grids Number Value 0.00 2.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments Tons CO2 (greenhouse gas) emissions Text Value 51000 121,000 avoided Date 07-Jul-2005 31-Dec-2012 30-Jun-2012 Comments 121,000 is now the revised expectation due to having 2 rather than 8 micro-hydros completed under the project

Intermediate Results Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Number of integrated mancomunal Text Value 0 6 6 infrastructure plans completed Date 07-Jul-2005 30-Jun-2013 Comments Percentage of planned sub projects actually Percentage Value 87.00 60.00 implemented Date 07-Jul-2005 11-May-2012 30-Jun-2013 Comments Roads rehabilitated, Rural Kilometers Value 0.00 590.00 600.00 Date 01-Aug-2006 31-Dec-2012 30-Jun-2013 Comments Public Disclosure Copy New piped household water connections that Number Value 0.00 1924.00 1542.00 are resulting from the project intervention Date 01-Aug-2006 31-Dec-2012 30-Jun-2013 Comments Piped household water connections that are Number Value 0.00 9166.00 7041.00 benefiting from rehabilitation works undertaken Date 01-Aug-2006 31-Dec-2012 30-Jun-2013 by the project Comments Latrines constructed Number Value 3561.00 5767.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments Number of new household electricity Number Value 0.00 12314.00 12544.00 connections Date 06-Jun-2005 31-Dec-2012 30-Jun-2013 Comments Transmission and distribution lines constructed Kilometers Value 618.21 712.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments solar companies accredited Number Value 5.00 6.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments micro-financing companies accredited Number Value 7.00 7.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments Volume of Bank Support: Lines of Credit - Amount(USD) Value 1151086.00 1500000.00 Microfinance Date 31-Dec-2012 30-Jun-2013 Public Disclosure Copy Comments

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Volume of Bank Support: Institutional Amount(USD) Value 159371.00 300000.00 Development - Microfinance Date 31-Dec-2012 30-Jun-2013 Comments UTIs operating with trained staff Number Value 6.00 6.00 Date 07-Jul-2005 31-Dec-2012 30-Jun-2013 Comments MAMNO is however receiving specific help from the UCP to meet its obligations Water Boards trained in operations and Number Value 64.00 50.00 maintenance Date 07-Jul-2005 31-Dec-2012 30-Jun-2013

Public Disclosure Copy Comments Monitoring and Evaluation Systems Text Value 0 Complied with established. Date 07-Jul-2005 11-May-2012 30-Jun-2012 Comments

Data on Financial Performance (as of 10-Jan-2013)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P086775 IDA-40990 Effective 07-Jul-2005 16-Nov-2005 04-Aug-2006 30-Jun-2010 30-Jun-2013 P090113 TF-55968 Effective 21-Mar-2006 21-Mar-2006 04-Aug-2006 30-Jun-2008 30-Jun-2013

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P086775 IDA-40990 Effective USD 47.00 47.00 0.00 47.27 2.33 101.00 P090113 TF-55968 Effective USD 2.35 2.35 0.00 1.86 0.49 79.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation The Bank has received a Government request to prepare an Additional Finance project under the category scale-up of project on November 14, 2012. The Additional Finance project is presently being prepared by the Bank and the first preparatory mission will take place in early February. A number of recommendations to support the design and implementation of the Additional Finance project were already discussed during the December mission and documented in the Aide Memoir. An important conclusion during the mission was to focus the scope of the Additional Finance operation to the presently involved mancomunidades but keep the project flexible to potentially include additional mancomunidades, selected based on the established criteria of the present PIR project.

Restructuring History Level two Approved on 08-Apr-2010, Level two Approved on 29-Jun-2010, Level one Approved on 01-Jun-2012

Related Projects P090113-Rural Electrification Project, P144324-HN RURAL INFRASTRUCTURE PROJECT (AF) Public Disclosure Copy

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