The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) REPORT NO.: RES33483 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MEXICO SUSTAINABLE ENERGY TECHNOLOGIES DEVELOPMENT FOR CLIMATE CHANGE APPROVED ON MARCH 6, 2015 TO UNITED MEXICAN STATES ENERGY AND EXTRACTIVES LATIN AMERICA AND CARIBBEAN Regional Vice President: Jorge Familiar Country Director: Pablo Saavedra Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Antonio Barbalho Task Team Leader: Guillermo Hernandez Gonzalez The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) ABBREVIATIONS AND ACRONYMS ACE Advanced Clean Energy CCEC Collaborative Clean Energy Commercialization CERIP Clean Energy Regional Investment Plan FSE Sustainable Energy Fund (Fondo Sectorial CONACYT-SENER de Sustentabilidad Energética) GEF Global Environment Facility GEO Global Environmental Objective GHG Greenhouse Gas GoM Government of Mexico GRM Grievance Redress System IP Implementation Progress ISR Implementation Status and Results Report M&E Monitoring and Evaluation MtCO2E Million Tons Carbon Dioxide Equivalent MTR Mid-term Review PAD Project Appraisal Document PDO Project Development Objective PRODETES Sustainable Energy Technologies Development for Climate Change Project (Proyecto de Desarrollo de Tecnologías de Energía Sustentable para el Cambio Climático) RF Results Framework RNA Regional Needs Assessment SENER Secretariat of Energy (Secretaría de Energía) SHCP Secretariat of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) TA Technical Assistance The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) BASIC DATA Product Information Project ID Financing Instrument P145618 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 06-Mar-2015 31-Dec-2019 Organizations Borrower Responsible Agency United Mexican States SENER Project Development Objective (PDO) Original PDO The objectives of the Project are to improve the institutional capacity of ACE technology institutions (both public and private)inthe territory of the recipient and to foster the commercialization of ACE technologies by providing financial incentives to the private sector, which together are expected to lead to GHG emissions reduction in the future. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-19403 06-Mar-2015 08-May-2015 21-Sep-2015 31-Dec-2019 16.88 3.54 13.34 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. This GEF project was approved in March 2015 for a total amount of USD 16.88 million. It became effective in September 2015 and is now under full implementation. Status of the activities under the three components is as follows: (i) Component 1: Regional Needs Assessment (RNAs). The works for the six remaining RNAs are completed, and the final deliverables were submitted to SENER for a final revision and validation in March 2018. These final deliverables were cleared by SENER in May 2018. SENER is progressing on the development of a web based platform that will consolidate all the information resulting from the RNAs, and the initial developments can be consulted in its dedicated website (http://sener1.sdintelligence.net/). All ten RNAs (the first four RNAs were completed by the end of 2017) provide a catalogue of potential clean energy projects categorized by technology, maturity, and risks, and will inform the preparation of Clean Energy Regional Investment Plans (CERIPs). In March 2018, SENER published an Expression of Interest request with the purpose of hiring a consultancy, whose objective is to analyze the outcomes of the RNAs to inform other activities and initiatives under SENER's responsibility, such as development and update of roadmaps for different clean technologies, as well as a review of the operation and design of current and future dedicated innovation centers for different clean technologies (Mexican Centers of Energy Innovation). Proposals have been evaluated, and works are expected to be carried out between September 2018 and January 2019. (ii) Component 2: Incentives to the private sector for the commercialization of Advanced Clean Energy Technologies. The third call for proposals was launched on February 6, 2018, and closed on May 7, 2018. This third call for proposals was broadly advertised through different channels, such as social media, SENER's website, personalized e-mails to key stakeholders, and international conferences (e.g. International Conference on Sustainable Fuels, in New Delhi, February 2018). The received proposals are currently being evaluated and awardees are expected to be announced in early September 2018. The implementation timeframe for the awarded subprojects under this third proposals has been adjusted to twelve to fourteen months in order to be completed before the closing date of the project (December 31, 2019). Works for those awarded subprojects under the first two calls for proposals are underway, each of which is at a different stage of implementation (the first call for proposals resulted in 5 awards, whereas the second call for proposals resulted in 4 awards). (iii) Component 3: Project Management. Project Management activities, including financial management, procurement and oversight, are underway. However, the team has identified that the Project Implementation Unit's current structure is not keeping up with the support that is being demanded by awardees of Premios PRODETES from the first two calls for proposals. The Government of Mexico (Secretariats of Finance and Energy) is currently drafting Terms of Reference (TORs) for a number of new positions. Such TORs are expected to be sent to the Bank for no objection by mid-September 2018, and if cleared, will be included in an updated version of the project's Procurement Plan. 2. Progress towards achievement of the Global Environmental Objective (GEO) and the overall Implementation Progress (IP) remain as Moderately Satisfactory. The project has disbursed USD 3.54 million (21% of the total grant amount) and the disbursement level is expected to be 50% by the end of CY 2018, reflecting the implementation of the first and second set of sub-grants and the closing of TA activities (commitments from the first and second call iv The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) for proposals reached USD 6.3 million, whereas the third call for proposals is expected to commit the remaining USD 4.2 million under Component 2 of the project). 3. The Mid-term Review (MTR) of the project was carried out in March 2018. In the MTR, the Government confirmed that the PDO remains relevant for contributing to the achievement of national targets on clean energy and that the PDO indicators remain achievable. 4. The project does not have any outstanding audit reports. The rating for Financial Management, Procurement and Safeguards is Satisfactory, whereas the rating for Monitoring and Evaluation and Project Management is Moderately Satisfactory. B. Rationale for restructuring 5. This level-II restructuring seeks to revise several indicators in the Results Framework (RF), as requested by the GoM on May 30th, 2018 (communication BDB-1722/1583). The RF was formally assessed during the MTR, where the GoM and the Bank agreed on updating a number of indicators (i.e. target and/or definition) to address two main shortcomings of the original RF, namely: (i) achievement of some key indicators was beyond the scope of the project, (ii) achievement of some intermediate indicators could only be assessed towards the end of the implementation period, leaving little margin for action in case corrective measures were needed. Also, the proposed restructuring adjusts some targets based on the observed demand, which could only be assesed during the implementation stage. II. DESCRIPTION OF PROPOSED CHANGES A. Results Framework (RF). 6. The proposed changes to the RF are aimed at better measuring the results of the first two calls for proposals in 2016 and 2017, respectively. Suggested changes include modifications to the definition of some indicators, and creation/deletion of a number of intermediate indicators. For the indicators that remain in the RF, none of the targets was modified (see the RF section and Annex I below for details of each global and intermediate indicator). These modifications are the result of close project implementation monitoring and support and could only be suggested after the outcome of the first two calls for proposals (Convocatorias 2016 and 2017) was known. The RF will also include a new citizen engagement indicator, i.e. registered grievances satisfactorily resolved (in %) in line with the Grievance Redress Mechanism (GRM). The GRM is in place and complaints are being tracked and addressed in an ongoing basis. The following table provides a summary of the proposed changes: Table 1. Summary of Proposed Changes PDO / GEO Indicators Indicator Action CERIPs published Change in definition: original definition was “CERIPs designed and initiated”. Capital Mobilized for Government programs or initiatives aimed at Change in definition: fostering clean energy innovation (public and private) original definition was “Private Capital Mobilized”. v The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Future emission reductions from ACE technologies supported by the No change Project Intermediate Indicators Component 1 Number of high-relevance investment opportunities identified in Change in definition: original definition was Component 1 that could be potentially supported by national and/or “Number of investment opportunities identified international sources of financing in Component 1 that receive funding through the FSE”. Number of ACE program recipients identified from Component 1 Deleted Component 2 Number of recipients of TA No change Number of patents or other industrial/intellectual property schemes Change in definition: original definition was for ACE technologies “Number of patents for ACE technologies”. Number of CCEC grants awarded Deleted Number of prototypes completed Deleted Number of female participants No change Web based platform developed New Number of incentives awarded, with at least 40% of them under the New CCEC category. Number of Commercialization Plans developed New Number of jobs created by the ACE program beneficiaries New Number of safeguards follow-up plans developed and in place New Registered grievances satisfactorily resolved in line with the Grievance New Redress Mechanism (GRM) III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Components and Cost ✔ vi The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) vii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) . Results framework COUNTRY: Mexico MEXICO Sustainable Energy Technologies Development for Climate Change Project Development Objectives(s) The objectives of the Project are to improve the institutional capacity of ACE technology institutions (both public and private)inthe territory of the recipient and to foster the commercialization of ACE technologies by providing financial incentives to the private sector, which together are expected to lead to GHG emissions reduction in the future. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 To improve the institutional capacity of ACE institutions in Mexico (Action: This Objective is New) CERIPs published. (Number) 0.00 0.00 0.00 16.00 32.00 32.00 Rationale: The Clean Energy Regional Investment Plans (CERIPs) are the key outcome of the Regional Assessments. As of March 8, 2018, 16 out of 32 had been completed. However, this indicator states that CERIPs must be designed and initiated. During the MTR, SENER explained that CERIPs will be completed and Action: This indicator has been could be made public for informing policy makers, but that the ultimate decision of initiating them relies solely on State Governments, and thus out of the Revised scope of PRODETES. For this reason, the Government and the Bank agreed to modify the definition of this indicator as follows: “CERIPs published”. To foster the commercialization of ACE technologies by providing financial incentives (Action: This Objective is New) Capital Mobilized for Government programs or 0.00 0.00 0.00 3,000,000.00 6,000,000.00 6,000,000.00 initiatives aimed at fostering viii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 clean energy innovation (public and private) (Amount(USD)) Rationale: Originally, this indicator was related to those resources for the ACE program or for programs or funds with similar objectives needed to replace the limited GEF resources that will be exhausted during the project. During the MTR, the Government and the Bank agreed to update this indicator to include both Action: This indicator has been private and public resources not only for the ACE program but also for other Government programs or initiatives aimed at fostering clean energy innovation. Revised SENER will provide an update for the target of this indicator once the results framework is adjusted through this level-2 restructuring process. Original definition was “Private Capital Mobilized”. GHG emissions reductions in the future (Action: This Objective is New) Future emission reductions from ACE technologies 0.00 0.00 800,000.00 1,600,000.00 2,408,742.00 2,408,742.00 supported by the Project (Metric ton) Rationale: Action: This indicator has been This indicator is not changed. It is shown as "revised" to reflect consistency in the units of measure between the Project Appraisal Document (PAD) (million Revised tonCO2e) and the Operations Portal (tonCO2e). PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 Component 1. Regional Needs Assessments (RNAs) (Action: This Component is New) ix The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 Number of high-relevance investment opportunities identified in Component 1 that could be potentially supported 0.00 0.00 0.00 16.00 32.00 32.00 by national and/or international sources of financing (Number) Rationale: The end target is maintained as 32 but the definition of the indicator is modified as follows: “Number of high-relevance investment opportunities identified in Component 1 that could be potentially supported by national and/or international sources Action: This indicator has been of financing” (original description was “Number of investment opportunities identified in Component 1 that receive funding through the FSE”). Revised The rationale for this modification is that PRODETES is responsible for identifying potential candidates to receive funding, but it is not responsible for the projects that are selected to be supported by FSE. Note: A high-relevance investment opportunity is one that is top-ranked based on its maturity level, its associated risks, and its priority. Number of ACE program recipients identified from 0.00 6.00 Component 1 (Number) Rationale: During the MTR, the Government and the Bank agreed that this specific indicator represents an unfair advantage for proposals that apply to the ACE program (Premios PRODETES) and that were identified from Component 1, vis-à-vis those that could be very innovative but were not identified from Component 1. Since the original purpose of this indicator was to identify high-quality projects at a national level, the Government proposed to replace it by Action: This indicator has been the following new indicator: Marked for Deletion - Web based platform developed. This public platform will consolidate all the information resulting from the RNAs (including the corresponding ex-post analysis) and will constitute a valuable depository of information for policy makers and entrepreneurs. Since the RNAs provide a catalogue of potential clean energy projects categorized by technology, maturity, and risks, the development of this website will directly serve the original indicator’s objective of identifying high-quality projects at a national level. Initial developments can be consulted in its dedicated website (http://sener1.sdintelligence.net/). x The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 Component 2. Incentives for the Commercialization of ACE Technologies (Action: This Component is New) Number of recipients of TA 0.00 0.00 8.00 16.00 24.00 24.00 (Number) Rationale: Action: This indicator has been This indicator is not changed. It is shown as "revised" because intermediate targets were adjusted to show cumulative values (as in the PAD). Revised Number of patents or other industrial/intellectual property 0.00 0.00 1.00 2.00 3.00 3.00 schemes for ACE technologies (Number) Rationale: The definition of this indicator is modified as follows: “Number of patents or other industrial/intellectual property schemes for ACE technologies” (original definition was “Number of patents for ACE Action: This indicator has been technologies”). Revised SENER has identified that at least three projects from the first call for proposals (Convocatoria 2016) can potentially apply for a patent or an equivalent industrial/intellectual property scheme. SENER will follow up and will provide TA for those candidates, and will also try to identify potential candidates from the second call for proposals (Convocatoria 2017). Number of CCEC grants 0.00 12.00 awarded (Number) Rationale: Action: This indicator has been The current target (12 CCEC awards) was included in the PAD under the assumption that there would be a total of 24 grants, and 50% of them (12), would be Marked for Deletion CCEC, whereas the other 50% would be "prototype" grants. Based on observed progress for this demand-driven program, the Government and the Bank agreed during the MTR to merge the CCEC grants and the prototype grants into one indicator, as follows: xi The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 - Number of incentives awarded, with at least 40% of them under the CCEC category. The target of this unified indicator would be 15, as opposed to 12 for the CCEC category and 12 for the prototype category. It should be noted that the reduction in the target is based on the observed outcomes of the first two calls for proposals, i.e., less-than-expected Bronze awards (those with the smallest financial incentive). However, the allocated amount under Component 2 remains as USD10.5 million, resulting from less supported projects but with a larger financial incentive (i.e., more Gold and Silver awards). Number of prototypes 0.00 12.00 completed (Number) Rationale: After the first and second calls for proposals (Convocatoria 2016 and Convocatoria 2017), there are 5 CCEC grants awarded and 4 prototype grants awarded (prototypes development is undergoing and thus none has been completed yet, as the indicator states). As explained in the CCEC indicator above, the Government and the Bank agreed during the MTR to merge the CCEC grants and the prototype grants into one indicator, as follows: Action: This indicator has been - Number of incentives awarded, with at least 40% of them under the CCEC category. The target of this unified indicator would be 15, as opposed to 12 for Marked for Deletion the CCEC category and 12 for the prototype category. It should be noted that the reduction in the target is based on the observed outcomes of the first two calls for proposals, i.e., less-than-expected Bronze awards (those with the smallest financial incentive). However, the allocated amount under Component 2 remains as USD10.5 million, resulting from less supported projects but with a larger financial incentive (i.e., more Gold and Silver awards). Number of female participants 0.00 0.00 1.00 3.00 5.00 5.00 (Number) Rationale: Action: This indicator has been This indicator is not changed. It is shown as "revised" because intermediate targets were adjusted to show cumulative values (as in the PAD). Revised Web based platform No No No No Yes Yes developed (Yes/No) Action: This indicator has been Rationale: Revised This is a New indicator. xii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 - Web based platform developed. This public platform will consolidate all the information resulting from the RNAs (including the corresponding ex-post analysis) and will constitute a valuable depository of information for policy makers and entrepreneurs. Since the RNAs provide a catalogue of potential clean energy projects categorized by technology, maturity, and risks, the development of this website will directly serve the original indicator’s objective of identifying high-quality projects at a national level. Initial developments can be consulted in its dedicated website (http://sener1.sdintelligence.net/). Frequency: Every 6 months. Data source / methodology: SENER will inform the Bank once the platform is up and running, and will monitor the number of visits. An update will be included in the periodic progress reports. Responsibility for data collection: SENER Number of incentives awarded, with at least 40% of them 0.00 5.00 9.00 15.00 15.00 15.00 under the CCEC category. (Number) Rationale: This is a New indicator. This is a merged indicator, and replaces Number of CCEC grants awarded and Number of prototypes completed. After the first and second calls for proposals (Convocatoria 2016 and Convocatoria 2017), there are 5 CCEC grants awarded and 4 prototype grants awarded Action: This indicator has been (prototypes development is undergoing and thus none has been completed yet, as the indicator states). Updated indicator is thus 9 incentives awarded, with Revised 5 (55%) under the CCEC category. Frequency: Every 6 months. Data source / methodology: An update will be included in the periodic progress reports. Responsibility for data collection: SENER Number of Commercialization 0.00 0.00 0.00 9.00 15.00 15.00 Plans developed. (Number) Action: This indicator has been Rationale: Revised xiii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 This is a New indicator. SENER will provide TA to each beneficiary for them to develop their own plan to make their project commercially viable. Frequency: Every 6 months. Data source / methodology: An update will be included in the periodic progress reports. Responsibility for data collection: SENER Number of jobs created by the ACE program beneficiaries. 0.00 0.00 0.00 9.00 15.00 15.00 (Number) Rationale: This is a New indicator. SENER will monitor the number of direct and indirect jobs created by the ACE program beneficiaries during the development of their projects. It is expected that each beneficiary will create at least 1 direct/indirect job with counterpart resources, i.e., these will be permanent jobs that will continue once the Action: This indicator has been PRODETES award is fully disbursed. The end target of 15 has been defined based on observed development of ongoing subprojects supported by the first two Revised calls for proposals. Frequency: Every 6 months. Data source / methodology: An update will be included in the periodic progress reports. Responsibility for data collection: SENER Number of safeguards follow- up plans developed and in 0.00 0.00 0.00 9.00 15.00 15.00 place. (Number) Rationale: Action: This indicator has been This is a New indicator. Revised Each ACE program beneficiary will develop and enforce an environmental and social safeguards follow-up plan for their corresponding sub-projects. Frequency: Every 6 months. xiv The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 Data source / methodology: Beneficiaries of PRODETES awards will submit their updated safeguards follow-up plans to UREP, which will incorporate them as annexes in the periodic progress reports. Responsibility for data collection: SENER Registered grievances satisfactorily resolved in line with the Grievance Redress 0.00 100.00 100.00 Mechanism (GRM) (Percentage) Rationale: This is a New indicator. The project has a dedicated outreach mechanism for Component 2 (Incentives to the private sector for the commercialization of ACE technologies, or Premios PRODETES, as they are known in Spanish), which consists of a specific website (www.premioprodetes.mx) for the dissemination of relevant information, including the call for proposals and the corresponding deadlines. The PRODETES website also features a contact tab that is open to the public, and by which interested stakeholders can submit questions or complaints. In addition to the existing email account reported in the Seq.-06 ISR (info@premioprodetes.mx), SENER created two separate email accounts for the third call for proposals (Convocatoria 2018): soporte@premioprodetes.mx and quejas@premioprodetes.mx, and SENER remains committed to responding within 48 Action: This indicator has been hours. The target is to address 100 percent of received complaints. Revised By March 8th, 2018, SENER reported 20 inquiries, distributed as follows: - 16 inquiries to info@premioprodetes.mx (general information); - 3 inquiries to soporte@premioprodetes.mx (technical questions); - 1 inquiry to quejas@premioprodetes.mx (complaints). SENER reported that this unique case was a result of a delayed response to one inquiry that had been previously submitted to info@premioprodetes.mx (instead of a normal response time of 1-2 days, the team took 8 days to reply, hence the complaint). Frequency: Every 6 months. Data source / methodology: E-mails sent to the above-mentioned accounts. SENER will address all inquiries and will include a specific section of number of inquiries and percentage of those successfully resolved in the periodic progress reports. Responsibility for data collection: SENER xv The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 2015 1 2 3 4 2020 IO Table SPACE . xvi The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Annex I. Details of proposed changes to the Results Framework Global Environment Objective Indicators CERIPs published. Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 16.00 32.00 Revised Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments The Clean Energy Regional Investment Plans (CERIPs) are the key outcome of the Regional Assessments. As of March 8, 2018, 16 out of 32 had been completed. However, this indicator states that CERIPs must be designed and initiated. During the MTR, SENER explained that CERIPs will be completed and could be made public for informing policy makers, but that the ultimate decision of initiating them relies solely on State Governments, and thus out of the scope of PRODETES. For this reason, the Government and the Bank agreed to modify the definition of this indicator as follows: “CERIPs published”. Capital Mobilized for Government programs or initiatives aimed at fostering clean energy innovation (public and private) Unit of Measure: Amount(USD) Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 6000000.00 Revised Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments Originally, this indicator was related to those resources for the ACE program or for programs or funds with similar objectives needed to replace the limited GEF resources that will be exhausted during the project. During the MTR, the Government and the Bank agreed to update this indicator to include both private and public resources not only for the ACE program but also for other Government programs or initiatives aimed at fostering clean energy innovation. SENER will provide an update for this indicator once the results framework is adjusted through this level-2 restructuring process. Original definition was “Private Capital Mobilized”. Future emission reductions from ACE technologies supported by the Project Unit of Measure: Metric ton Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1900000.00 2408742.00 No Change xvii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments This indicator is not changed. Intermediate Indicators Number of high-relevance investment opportunities identified in Component 1 that could be potentially supported by national and/or international sources of financing Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 32.00 Revised Date 30-Jun-2015 09-Jul-2018 31-Dec-2019 Comments The end target is maintained as 32 but the definition of the indicator is modified as follows: “Number of high-relevance investment opportunities identified in Component 1 that could be potentially supported by national and/or international sources of financing” (original description was “Number of investment opportunities identified in Component 1 that receive funding through the FSE”). The rationale for this modification is that PRODETES is responsible for identifying potential candidates to receive funding, but it is not responsible for the projects that are selected to be supported by FSE. Note: A high-relevance investment opportunity is one that is top-ranked based on its maturity level, its associated risks, and its priority. Number of ACE program recipients identified from Component 1 Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 6.00 Marked for Deletion Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 xviii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Comments During the MTR, the Government and the Bank agreed that this specific indicator represents an unfair advantage for proposals that apply to the ACE program (Premios PRODETES) and that were identified from Component 1, vis-à-vis those that could be very innovative but were not identified from Component 1. Since the original purpose of this indicator was to identify high-quality projects at a national level, the Government proposed to replace it by the following new indicator: - Web based platform developed. This public platform will consolidate all the information resulting from the RNAs (including the corresponding ex-post analysis) and will constitute a valuable depository of information for policy makers and entrepreneurs. Since the RNAs provide a catalogue of potential clean energy projects categorized by technology, maturity, and risks, the development of this website will directly serve the original indicator’s objective of identifying high-quality projects at a national level. Initial developments can be consulted in its dedicated website (http://sener1.sdintelligence.net/). Number of recipients of TA Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 55.00 24.00 No Change Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments This indicator is not changed. Number of patents or other industrial/intellectual property schemes for ACE technologies Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 3.00 Revised Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments The definition of this indicator is modified as follows: “Number of patents or other industrial/intellectual property schemes for ACE technologies” (original definition was “Number of patents for ACE technologies”). SENER has identified that at least three projects from the first call for proposals (Convocatoria 2016) can potentially apply for a patent or an equivalent industrial/intellectual property scheme. SENER will follow up and will provide TA for those candidates, and will also try to identify potential candidates from the second call for proposals (Convocatoria 2017). xix The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Number of CCEC grants awarded Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 4.00 12.00 Marked for Deletion Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments The current target (12 CCEC awards) was included in the PAD under the assumption that there would be a total of 24 grants, and 50% of them (12), would be CCEC, whereas the other 50% would be "prototype" grants. Based on observed progress for this demand-driven program, the Government and the Bank agreed during the MTR to merge the CCEC grants and the prototype grants into one indicator, as follows: - Number of incentives awarded, with at least 40% of them under the CCEC category. The target of this unified indicator would be 15, as opposed to 12 for the CCEC category and 12 for the prototype category. It should be noted that the reduction in the target is based on the observed outcomes of the first two calls for proposals, i.e., less-than- expected Bronze awards (those with the smallest financial incentive). However, the allocated amount under Component 2 remains as USD10.5 million, resulting from less supported projects but with a larger financial incentive (i.e., more Gold and Silver awards). Number of prototypes completed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 12.00 Marked for Deletion Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments After the first and second calls for proposals (Convocatoria 2016 and Convocatoria 2017), there are 5 CCEC grants awarded and 4 prototype grants awarded (prototypes development is undergoing and thus none has been completed yet, as the indicator states). As explained in the CCEC indicator above, the Government and the Bank agreed during the MTR to merge the CCEC grants and the prototype grants into one indicator, as follows: - Number of incentives awarded, with at least 40% of them under the CCEC category. The target of this unified indicator would be 15, as opposed to 12 for the CCEC category and 12 for the prototype category. It should be noted that the reduction in the target is based on the observed outcomes of the first two calls for proposals, i.e., less-than- expected Bronze awards (those with the smallest financial incentive). However, the allocated amount under Component 2 remains as USD10.5 million, resulting from less supported projects but with a larger financial incentive (i.e., more Gold and Silver awards). xx The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Number of female participants Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 5.00 5.00 No Change Date 30-Jun-2015 19-Jun-2018 31-Dec-2019 Comments This indicator is not changed. The target for this indicator has already been met (as reported in the latest ISR). Additionally, SENER will include female participants from the third call for proposals (Convocatoria 2018) once the outcome is available (middle of September 2018). Also, SENER will report the number of female participants in all supported projects that have a relevant role in their corresponding organizational chart (where applicable), and not only those female participants that have a leading role. Web based platform developed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1.00 1.00 New Date 09-Jul-2018 09-Jul-2018 31-Dec-2019 Comments - Web based platform developed. This public platform will consolidate all the information resulting from the RNAs (including the corresponding ex-post analysis) and will constitute a valuable depository of information for policy makers and entrepreneurs. Since the RNAs provide a catalogue of potential clean energy projects categorized by technology, maturity, and risks, the development of this website will directly serve the original indicator’s objective of identifying high-quality projects at a national level. Initial developments can be consulted in its dedicated website (http://sener1.sdintelligence.net/). Frequency: Every 6 months. Data source / methodology: SENER will inform the Bank once the platform is up and running, and will monitor the number of visits. An update will be included in the periodic progress reports. Responsibility for data collection: SENER Number of incentives awarded, with at least 40% of them under the CCEC category. Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 9.00 15.00 New xxi The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Date 30-Jun-2015 09-Jul-2018 31-Dec-2019 Comments This is a merged indicator, and replaces Number of CCEC grants awarded and Number of prototypes completed. After the first and second calls for proposals (Convocatoria 2016 and Convocatoria 2017), there are 5 CCEC grants awarded and 4 prototype grants awarded (prototypes development is undergoing and thus none has been completed yet, as the indicator states). Updated indicator is thus 9 incentives awarded, with 5 (55%) under the CCEC category. Frequency: Every 6 months. Data source / methodology: An update will be included in the periodic progress reports by SENER. Responsibility for data collection: SENER Number of Commercialization Plans developed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 15.00 New Date 10-Jul-2018 10-Jul-2018 31-Dec-2019 Comments SENER will provide TA to each beneficiary for them to develop their own plan to make their project commercially viable. Frequency: Every 6 months. Data source / methodology: An update will be included in the periodic progress reports by SENER. Responsibility for data collection: SENER Number of jobs created by the ACE program beneficiaries Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 15.00 New Date 10-Jul-2018 10-Jul-2018 31-Dec-2019 xxii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Comments SENER will monitor the number of direct and indirect jobs created by the ACE program beneficiaries during the development of their projects. It is expected that each beneficiary will create at least 1 direct/indirect job with counterpart resources, i.e., these will be permanent jobs that will continue once the PRODETES award is fully disbursed. The end target of 15 has been defined based on observed development of ongoing subprojects supported by the first two calls for proposals. Frequency: Every 6 months. Data source / methodology: An update will be included in the periodic progress reports by SENER. Responsibility for data collection: SENER Number of safeguards follow-up plans developed and in place Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 15.00 New Date 10-Jul-2018 10-Jul-2018 31-Dec-2019 Comments Each ACE program beneficiary will develop and enforce an environmental and social safeguards follow-up plan for their corresponding sub-projects. Frequency: Every 6 months. Data source / methodology: Beneficiaries of PRODETES awards will submit their updated safeguards follow-up plans to UREP, which will incorporate them as annexes in the periodic progress reports. Responsibility for data collection: SENER Registered grievances satisfactorily resolved in line with the Grievance Redress Mechanism (GRM) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 100.00 New Date 11-Jul-2018 11-Jul-2018 31-Dec-2019 xxiii The World Bank MEXICO Sustainable Energy Technologies Development for Climate Change (P145618) Comments The project has a dedicated outreach mechanism for Component 2 (Incentives to the private sector for the commercialization of ACE technologies, or Premios PRODETES, as they are known in Spanish), which consists of a specific website (www.premioprodetes.mx) for the dissemination of relevant information, including the call for proposals and the corresponding deadlines. The PRODETES website also features a contact tab that is open to the public, and by which interested stakeholders can submit questions or complaints. In addition to the existing email account reported in the previous ISR (info@premioprodetes.mx), SENER created two separate email accounts for the third call for proposals (Convocatoria 2018): soporte@premioprodetes.mx and quejas@premioprodetes.mx, and SENER remains committed to responding within 48 hours. The target is to address 100 percent of received complaints. By March 8th, 2018, SENER reported 20 inquiries, distributed as follows: - 16 inquiries to info@premioprodetes.mx (general information); - 3 inquiries to soporte@premioprodetes.mx (technical questions); - 1 inquiry to quejas@premioprodetes.mx (complaints). SENER reported that this unique case was a result of a delayed response to one inquiry that had been previously submitted to info@premioprodetes.mx (instead of a normal response time of 1-2 days, the team took 8 days to reply, hence the complaint). Frequency: Every 6 months. Data source / methodology: E-mails sent to the above-mentioned accounts. SENER will address all inquiries and will include a specific section of number of inquiries and percentage of those successfully resolved in the periodic progress reports. Responsibility for data collection: SENER xxiv