The World Bank Report No: ISR12826 Implementation Status & Results Philippines Electric Cooperative System Loss Reduction Project (P066532) Public Disclosure Copy Operation Name: Electric Cooperative System Loss Reduction Project Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 13-Dec-2013 (P066532) Country: Philippines Approval FY: 2004 Product Line: Global Environment Project Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 29-Apr-2004 Original Closing Date 31-Dec-2011 Planned Mid Term Review Date 30-Sep-2008 Last Archived ISR Date 13-Jun-2013 Effectiveness Date 05-Nov-2004 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 18-May-2009 Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The global objective of the Global Environment Facility (GEF) support will be to reduce GHG emissions through the removal of barriers to energy efficiency investments in the rural power distribution sub-sector. This will be achieved through the pilot use of innovative contractual mechanisms and GEF-funded Partial Credit Guarantee Program to promote private investment and financing. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost PARTIAL CREDIT GUARANTEE PROGRAM 10.00 CAPACITY BUILDING AND IMPLEMENTATION SUPPORT 2.30 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of GEO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Implementation Status Overview The project continues to make very good progress; by early 2014, it is expected that the Government's Electric Cooperative Partial Credit Guarantee (ECPCG) facility will be fully committed; new resources are intended to be provided by a project to be funded by the Clean Technology Fund (CTF): the Philippines Renewable Energy Development (PHRED) project. Because processing of this project is delayed, interim steps will be taken by the Department of Energy to ensure continuity of ECPCG until PHRED can be made effective. 29 loans, with 27 different electricity cooperatives (EC's) as the borrowers, are expected to be committed by early 2014. One loan has already disbursed to an EC, LEYECO-5 (Leyte Page 1 of 5 The World Bank Report No: ISR12826 Electric Cooperative 5), that was badly damaged by Typhoon Yolanda. ECPCG is on track to exceed its performance targets. The project will have supported 150% more investment than originally foreseen ($100-million versus the projection of $40- million); carbon avoidance should be at least 50% higher than estimated; 7 commercial banks have made loans, compared to a target of 4; and there have been no defaults by any of the borrowers. The project has demonstrated a viable commercial financing path for the EC sector and Government intends to scale up the ECPCG program using CTF resources. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Philippines Mimaropa Taytay Philippines Mimaropa San Vicente Philippines Mimaropa Roxas Philippines Davao Malita Philippines Western Visayas Lambunao Philippines Western Visayas Janiuay Philippines Mimaropa El Nido Philippines Western Visayas Calinog Philippines Davao Municipality of Don Marcelino Philippines Davao Municipality of Jose Abad Santos Results Global Environmental Objective Indicators Public Disclosure Copy Page 2 of 5 The World Bank Report No: ISR12826 Indicator Name Core Unit of Measure Baseline Current End Target energy savings Text Value zero 120 GWh at least 80 GWh annually by the end of the Project Public Disclosure Copy Date 28-Apr-2005 14-Nov-2013 31-Dec-2013 Comments With assets now in service, estimates and projections have been made, on a preliminary basis, that indicate that project results may exceed targets by 50%. This result will be verified once the Borrower Completion Report is available in early 2014. carbon dioxide emissions avoided Text Value zero 60,000 at least 40,000 tons annually by the end of the project Date 28-Apr-2005 14-Nov-2013 31-Dec-2013 Comments Preliminary estimate; results may exceed target by 50%. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target loan guaranteed investments under the project Text Value 0 $50-million booked and at least $24 million of loan another $20-m. to be booked guarantee issued and at least by early 2014 $40 million of investment in ECs Date 28-Apr-2005 14-Nov-2013 31-Dec-2013 Comments The project has exceeded its end-target by as much as 150% (pending final tally of lending as of early 2014). Public Disclosure Copy commercial banks and other financial Text Value zero 7 banks have made loans at least 4 commercial banks institutions providing loans to ECs under the program. and other financial institutions providing loans to ECs Date 28-Apr-2005 14-Nov-2013 31-Dec-2013 Comments The project has exceeded the target by 3. Page 3 of 5 The World Bank Report No: ISR12826 cumulative claim payments Text Value zero No claims have been made. not more than $3 million of cumulative guarantee claim payments Public Disclosure Copy Date 28-Apr-2005 14-Nov-2013 31-Dec-2013 Comments 16 loans are wholly or mostly drawn, and several are now in the principal repayment stage. No claims made. IMC transactions supported by the project Text Value zero at least 6 IMC transactions Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Comments The IMC approach proved unworkable, and has been dropped from the project. EC loan guarantees Text Value zero at least 15 loan guarantees issued for ECs Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Comments LGUGC has done a good job developing its capabilities in this area; and can now process much of the work involved in developing anddelivering its pipeline quite efficiently. TA and training programs developed and Text Value zero Total disbursement for the $2 delivered million capacity building component Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Comments The full $2-million will be used. Relatively less training will be done than originally designed as the operational Public Disclosure Copy requirements of the program demand more resources. Data on Financial Performance (as of 25-Nov-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P066532 TF-53360 Effective 05-May-2004 05-May-2004 05-Nov-2004 31-Dec-2011 31-Dec-2013 P066532 TF-53361 Effective 05-May-2004 05-May-2004 05-Nov-2004 31-Dec-2011 31-Dec-2013 Page 4 of 5 The World Bank Report No: ISR12826 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P066532 TF-53360 Effective USD 11.12 11.12 0.00 10.73 0.39 96.00 P066532 TF-53361 Effective USD 0.88 0.88 0.00 0.86 0.02 98.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The Bank and its partner agencies in the Philippines Government are preparing expansion of ECPCG through a Clean Technology Fund guarantee, which is expected to be active in the first half of 2014. Restructuring History Public Disclosure Copy Level two Approved on 31-Oct-2011 Related Projects There are no related projects. Page 5 of 5