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World Bank Document The World Bank Report No: ISR13962 Implementation Status & Results Honduras HN Rural Infrastructure Project (P086775) Operation Name: HN Rural Infrastructure Project (P086775) Project Stage: Implementation Seq.No: 17 Status: ARCHIVED Archive Date: 28-Apr-2014 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): Fondo Hondure#o de Inversi#n Social (FHIS) Key Dates Board Approval Date 07-Jul-2005 Original Closing Date 30-Jun-2010 Planned Mid Term Review Date Last Archived ISR Date 11-Oct-2013 Public Disclosure Copy Effectiveness Date 04-Aug-2006 Revised Closing Date 30-Jun-2016 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 Public Disclosure Copy Page 1 of 10 Public Disclosure Authorized The World Bank Report No: ISR13962 Component(s) Component Name Component Cost Participatory local planning 0.88 Infrastructure Service Delivery 16.00 Local Capacity Building and Policy Development TA 0.89 Project management, monitoring and evaluation 1.95 Microfinance services for SHS sub-programs 0.28 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Moderately Satisfactory Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Implementation Status Overview Implementation Progress is Moderatelly Satisfactory. Additional Financing for the Project was approved in June 2013 and the Project was declared effective in November 2013. Since the last supervision mission in September, the implementing agency (FHIS) has made significant progress preparing sub-projects for execution. Sub-projects: Currently, 21 projects in roads, 24 projects in water and sanitation, and 27 sub-projects in on-grid rural electrification are in the planning stages. Under the solar home systems component of the Project, FHIS has set the prices for SHS and prepared the contracts with the solar distribution companies for the NO of the Bank. The mini-hydro project in La Atravesada is nearly complete. All civil works, metering, and grid construction are complete. The generator experienced a mechanical failure, and had to be repaired. Repairs are complete, and the testing period for the system are scheduled to commence on 27 March. If the tests are successful, the system will run for a proving period of 1040 hours, after which time the sub-project will begin to generate electricity for the communities. New solar initiative: the team recently had discussions with Mario Pineda, recently appointed as the Minister for the Institute for Community Development, Water and Sanitation (IDECOAS), about a potential concessional loan of $40 million by the Korean foreign aid agency and US EX-IM bank in rural solar projects. The team emphasized the need for IDECOAS to coordinate with FHIS to ensure that efforts are not duplicated, that lessons learned are incorporated into Project design, and that market forces are utilized to ensure that distribution of solar systems is efficient and sustainable. Procurement: The Bank gave its NO for the procurement plan for the Project (both IDA credits), and is expected to disburse $4.7 million US in CY 2014. Safeguards: FHIS has made some progress on obtaining the environmental licenses pending for sub-projects already constructed. FHIS anticipates that all remaining licenses will be obtained by November 2014. For planned sub-projects, requests for environmental licenses for 14 sub-projects have been presented to the environmental agency (SERNA). The slow rate of processing of environmental licenses remains a significant concern. On average, each license takes 6-12 months to approve, causing significant delays in sub-project execution. Increased vigilance by FHIS, and if necessary, increased support by the Bank, are necessary to ensure that environmental licenses are secured for every sub-project in a timely fashion. In addition, measures to increase the environmental sustainability of sub-projects have been incorporated in the new designs for sub-projects. Preparation of the Environmental Remediation Action Plan, agreed as part of the MGAS, is well underway. It is anticipated that implementation of remediation actions will commence in October, and will be finalized by June 2015. Public Disclosure Copy Project Implementation Unit: With the inauguration of a new adminstration in Honduras, The Government is looking for ways to find savings and enhance the efficiency of Project implementation. To that end, consolidation of donor funded PIUs has been discussed. The team emphasized that, given the limited time for Project implementation, and that there is Page 2 of 10 The World Bank Report No: ISR13962 no possibility of Project extension, maintaining the institutional integrity of the existing PIU is absolutely critical if the Project is to succeed in meeting its sub-project execution goals. Selection of the additional mancomunidades: FHIS was given a deadline of April 4th for FHIS to submit their selection. This was achieved, albeit with only one additional mancommunidad. The Bank is currently reviewing the proposal. Locations Country First Administrative Division Location Planned Actual Honduras Departamento de Olancho Yocon Honduras Departamento de Santa Barbara Trinidad Honduras Departamento de Olancho Silca Public Disclosure Copy 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 Honduras Departamento de Copan San Nicolas 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 Honduras Departamento de Copan San Antonio Honduras Departamento de Olancho Salama Honduras Departamento de Santa Barbara Petoa Honduras Departamento de Choluteca Orocuina Public Disclosure Copy Honduras Departamento de Copan Nueva Arcadia Page 3 of 10 The World Bank Report No: ISR13962 Country First Administrative Division Location Planned Actual Honduras Departmento de La Paz Marcala Honduras Departamento de Olancho Mangulile Honduras Departamento de Ocotepeque Lucerna Honduras Departamento de Olancho La Union Honduras Departmento de La Paz La Paz Honduras Departamento de Ocotepeque La Labor Public Disclosure Copy Honduras Departamento de Copan La Jigua Honduras Departamento de Olancho La Guata Honduras Departamento de Olancho Jano Honduras Departamento de Olancho Guayape Honduras Departamento de Ocotepeque Fraternidad Honduras Departamento de Copan Florida Honduras Departamento de Olancho Esquipulas del Norte Honduras Departamento de Olancho El Rosario Honduras Departamento de Copan El Paraiso Honduras Departamento de Choluteca El Corpus Honduras Departamento de Choluteca Duyure Honduras Departamento de Ocotepeque Dolores Merendon Honduras Departamento de Copan Copan Ruinas Honduras Departamento de Olancho Concordia Honduras Departamento de Choluteca Concepcion de Maria Honduras Departamento de Santa Barbara Concepcion del Norte Honduras Departamento de Santa Barbara Chinda Public Disclosure Copy Honduras Departmento de La Paz Chinacla Honduras Departmento de La Paz Cane Page 4 of 10 The World Bank Report No: ISR13962 Honduras Departamento de Olancho Campamento Honduras Departamento de Copan Cabanas Honduras Departamento de Choluteca Apacilagua Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Direct project beneficiaries Number Value 0.00 461693.00 593036.00 Public Disclosure Copy Date 07-Jul-2005 25-Mar-2014 30-Jun-2016 Comments Female Beneficiaries Percentage Value 0.00 50.00 50.00 Sub Type Supplemental Generation capacity of renewable energy Megawatt hour Value 0.35 0.54 constructed under the project
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