The World Bank Report No: ISR8892 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: 14 Status: ARCHIVED Archive Date: 21-Dec-2012 (P066532) Country: Philippines Approval FY: 2004 Product Line: Global Environment Project Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Department of Energy, LGU Guarantee Corporation (LGUGC) 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-Mar-2012 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 Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview The project continues to make good progress toward its development objective. Committed and approved guarantees account for $58-million of the $70-million capacity of the Electric Cooperative Partial Credit Guarantee (EC-PCG) fund, signaling the need to increase the capital resources of the program at some point in 2013. This expansion of the guaranteeing capacity of EC-PCG is proposed to be done via a Clean Technology Fund guarantee, which is under preparation as part of the Philippines Renewable Energy Development (PHRED) project. Four loans backed by EC-PCG are now fully drawn, and the assets financed by those loans will be coming into full operational service in 2013. The Page 1 of 5 The World Bank Report No: ISR8892 impact of these assets on system losses and financial performance will be assessed in future implementation review missions. EC-PCG has already broadened access to finance, as increasingly lower rated (according to the classification system of the National Electrification Administration, or NEA) EC's come into the system; and it has also broadened participation by the financial community, as mid-market banks are chasing after deals. EC-PCG is now, with NEA, one of the two most important providers of debt to the EC sector. 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 Indicator Name Core Unit of Measure Baseline Current End Target energy savings Text Value zero zero at least 80 GWh annually by the end of the Project Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Public Disclosure Copy Comments A sizeable array of assets is just now coming into full operational service; an assessment of impact will be made in mid-2013. Theloss reduction attributable to assets funded by the project should enable the energy savings target to be met. Page 2 of 5 The World Bank Report No: ISR8892 carbon dioxide emissions avoided Text Value zero zero at least 40,000 tons annually by the end of the project Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Public Disclosure Copy Comments As assets come into service and data is generated, estimates of avoided carbon emissions will be made. The carbon savings target should be met, based on assets funds through the project coming fully into service. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target loan guaranteed investments under the project Text Value 0 $58-million has been booked at least $24 million of loan and/or approved by LGUGC. guarantee issued and at least $40 million of investment in ECs Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Comments The project has exceeded its end-target. commercial banks and other financial Text Value zero 6 banks have made loans at least 4 commercial banks institutions providing loans to ECs under the program, out of the and other financial institutions 11 participating banks. providing loans to ECs Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Comments The project has exceeded the target. cumulative claim payments Text Value zero No claims have been made. not more than $3 million of cumulative guarantee claim payments Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Public Disclosure Copy Comments There are 14 loans in or near draw-down, another 9 approvals, and 4 loans have been fully drawn. No claims made. Page 3 of 5 The World Bank Report No: ISR8892 IMC transactions supported by the project Text Value zero IMC's dropped from the at least 6 IMC transactions project. Date 28-Apr-2005 14-Nov-2012 31-Dec-2013 Public Disclosure Copy Comments The IMC approach proved unworkable, and has been dropped from the project. EC loan guarantees Text Value zero 23 booked and/or approved at least 15 loan guarantees guarantees, plus a large issued for ECs pipeline in development. 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 Technical assistance and Total disbursement for the $2 delivered trainng has been delivered million capacity building and is mostly winding down. component There will be some follow-up on credit risk ratingwork by DOE. 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 requirements of the program demand more resources. Public Disclosure Copy Data on Financial Performance (as of 26-Nov-2012) 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 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 10.63 0.50 96.00 Page 4 of 5 The World Bank Report No: ISR8892 P066532 TF-53361 Effective USD 0.88 0.88 0.00 0.68 0.20 77.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Bank and its partner agencies in the Philippines Government are preparing expansion of EC-PCG through a CTF guarantee, which is expected to be active before the end of 2013. Restructuring History Level two Approved on 31-Oct-2011 Related Projects Public Disclosure Copy There are no related projects. Page 5 of 5