Evaluacion Final Independiente del UNDP/GEF Proyecto ARECA: Acelerando proyectos de Energia Renovable en Centro en Central America

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Evaluation Plan:
2012-2016, Honduras
Evaluation Type:
Final Project
Planned End Date:
02/2016
Completion Date:
04/2016
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
50,000

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Title Evaluacion Final Independiente del UNDP/GEF Proyecto ARECA: Acelerando proyectos de Energia Renovable en Centro en Central America
Atlas Project Number: 00043791
Evaluation Plan: 2012-2016, Honduras
Evaluation Type: Final Project
Status: Completed
Completion Date: 04/2016
Planned End Date: 02/2016
Management Response: Yes
Focus Area:
  • 1. Others
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
  • 1. Output 1.3. Solutions developed at national and sub-national levels for sustainable management of natural resources, ecosystem services, chemicals and waste
Evaluation Budget(US $): 50,000
Source of Funding: GEF, Banrural, Banpaís, NASMAR, SERNA, Banco Agromercantil
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Alfredo Capriles Consultor acaprile@sd-advisors.com.ar ARGENTINA
Alfredo Capriles Consultor / evaluador acaprile@sd-advisors.com.ar) ARGENTINA
GEF Evaluation: Yes
GEF Project Title:
Evaluation Type: Terminal Evaluation
Focal Area: Climate Change
Project Type: FSP
GEF Phase: GEF-3
GEF Project ID: 975
PIMS Number: 2042
Key Stakeholders: BCIE, Banrural, BanPais, Banco Indurstrial, AHPER, NASMAR, MiAmbiente
Countries: HONDURAS
Comments: El proyecto ha sido extendido a diciembre 2013, según consta en el Acta de Comité Directivo del Proyecto de fecha 29 de noviembre 2011.
Lessons
1.
  • ARECA is a clear example of a good practice of a successful collaboration between UNDP and development banks and has the potential to be extended into a second phase in the Central American region where there is still potential for the implementation of SMREPs and /or replicated in other regions.  CABEI has benefited from the long standing experience of UNDP in enhancing the capacity of policymakers to identify the right mix of public instruments to make investments in renewable energy projects financially attractive for the private sector, its close links to governments across the region and technical knowledge of SMREP technologies, their potential to reduce GHG emissions. On the other hand, in partnering with CABEI, UNDP has been able to gain direct access to CABEIs regional network of IFIs while taking advantage of CABEI knowledge of the regional financial markets coupled with its skills and expertise in the design of project specific financial packages and its track record to act as a catalyst in the mobilization of funds from external sources.


2.
  • Implementation has been much slower than expected and hence the duration of similar projects should be increased due to the difficulties in establishing the operational rules of a PRG mechanism plus TA program within organizations of the size of CABEI and the complexities derived from being a regional program intended to operate in several countries with distinct regulatory and legal frameworks.

 

 

,

Based on the poor performance of ARECA during the early years the MTR should have been done earlier. MTRs are primarily a monitoring tool to identify challenges and outline corrective actions to ensure that a project is on track to achieve maximum results by its completion. In general terms the MTR process should coincide with the disbursement of 50% of the project’s resources. However in the case of poorly performing projects there may be benefits to bring the MTR forward and take corrective actions sooner to bring the project back on track.


Findings
Recommendations
1
  • UNDP and CABEI need to agree urgently on the operational rules for the remaining funds before Project termination together with the evaluation of a proposal to ensure the continuity of the PRG program. The PRODOC states that an agreement should be reached before Project end so action on this issue should be taken ASAP in order not to risk the sustainability of ARECA.

2
  • The structure of the new organization that will be in charge of taking the ARECA program forward and the new set of rules under which ARECA will operate should be defined ASAP. Most importantly, in order to ensure a smooth and effective transition it is critical that the new team of professionals that will take over ARECA´s responsibilities work alongside the current ARECA team for a period of 4 to 6 months or at a minimum the Project Coordinator should remain as a consultant to facilitate the handover of ARECA activities to CABEI for that period of time.

3
  • The gearing ratio of 1:3 which has been set for the PRG fund initially should be revised with the objective of determining how much higher it could be set at based upon the current conditions. This will allow for an increase in the total amount a PRG that could be offered with the same amount of funds that are currently allocated to the PRG fund. So far none of the PRG granted to date have been called and IFIs have increased their capacities to analyze SMREP risks so it appears that there should be room to increase the gearing ratio while keeping a similar risk profile for the PRG mechanism

4
  • The conditions upon which the TA funds are being granted should be revised in such a manner that those Projects that have obtained TA and succeed in reaching financing closing should be asked to return the TA funds either at financing closing or alternatively once they become operational to help maximize the use of the funds that have been allocated for TA. This will help with the replenishment of the TA fund and hence improve the sustainability of the ARECA program.

5
  • In order to scale up investment in SMREPs more aggressively, the combination of the TA programs and the PRG scheme should be combined with other financial products designed to address specific market needs in each of the countries.

6
  • Continuation of the dissemination of best practices and lessons learned by the early takers of PRGs will be key to increase the use of the PRG scheme in the region. The existence of the ARECA web page should be advertised more widely since it is an excellent platform for exchanging and disseminating best practices across the region.

7
  • Aside from working with IFIs, ARECA should also consider working with National Development Banks across the region.

8
  • Widening the range of eligible SMREPs to include energy efficiency projects and ESCOs is another aspect that ought to be considered to widen the eligibility of projects that could applied for PRGs.

9
  • The possibility of offering different coverage rations and/ or fee structure depending on the characteristics of the project should be evaluated in order to better promote investments in SMREP that would best meet the specific needs of each country. This will require looking at the type of technology, size and location, grid vs off-grid, potential for increasing the quality of life of beneficiaries and / or promising strong environmental or social benefits aside from RE generation that would best fit with the development objectives of each country.

1. Recommendation:
  • UNDP and CABEI need to agree urgently on the operational rules for the remaining funds before Project termination together with the evaluation of a proposal to ensure the continuity of the PRG program. The PRODOC states that an agreement should be reached before Project end so action on this issue should be taken ASAP in order not to risk the sustainability of ARECA.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

Llevada a cabo la Junta Directiva Final del proyecto incluyendo los arreglos finales de gestión para el cierre operativo y financiero del proyecto.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Seguimiento a los acuerdos de la última Junta Directiva de proyecto.
[Added: 2016/12/12]
Desarrollo Sostenible y Resiliencia 2016/11 Completed
2. Recommendation:
  • The structure of the new organization that will be in charge of taking the ARECA program forward and the new set of rules under which ARECA will operate should be defined ASAP. Most importantly, in order to ensure a smooth and effective transition it is critical that the new team of professionals that will take over ARECA´s responsibilities work alongside the current ARECA team for a period of 4 to 6 months or at a minimum the Project Coordinator should remain as a consultant to facilitate the handover of ARECA activities to CABEI for that period of time.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

El Banco Centroamericano de Integración Económica (CABEI in inglés) ha institucionalizado el modelo de Garantías Parciales de Crédito (PRG en inglés) y ahora es parte de sus servicios financieros a través de su red de Instituciones Financieras Intermediarias.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Solicitar un informe a CABEI un año después de la finalización del proyecto para conocer del estatus del programa de PRG.
[Added: 2016/12/12] [Last Updated: 2017/12/12]
Desarrollo Sostenible y Resiliencia 2017/12 Completed el informe fue presentado a PNUD History
3. Recommendation:
  • The gearing ratio of 1:3 which has been set for the PRG fund initially should be revised with the objective of determining how much higher it could be set at based upon the current conditions. This will allow for an increase in the total amount a PRG that could be offered with the same amount of funds that are currently allocated to the PRG fund. So far none of the PRG granted to date have been called and IFIs have increased their capacities to analyze SMREP risks so it appears that there should be room to increase the gearing ratio while keeping a similar risk profile for the PRG mechanism

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

El Banco Centroamericano de Integración Económica (CABEI in inglés) ha institucionalizado el modelo de Garantías Parciales de Crédito (PRG en inglés) y ahora es parte de sus servicios financieros a través de su red de Instituciones Financieras Intermediarias.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Solicitar un informe a CABEI un año después de la finalización del proyecto para conocer del estatus del programa de PRG.
[Added: 2016/12/12] [Last Updated: 2017/12/12]
Desarrollo Sostenible y Resiliencia 2017/12 Completed El informe fue presentado a PNUD History
4. Recommendation:
  • The conditions upon which the TA funds are being granted should be revised in such a manner that those Projects that have obtained TA and succeed in reaching financing closing should be asked to return the TA funds either at financing closing or alternatively once they become operational to help maximize the use of the funds that have been allocated for TA. This will help with the replenishment of the TA fund and hence improve the sustainability of the ARECA program.

Management Response: [Added: 2016/04/13]

Key Actions:

5. Recommendation:
  • In order to scale up investment in SMREPs more aggressively, the combination of the TA programs and the PRG scheme should be combined with other financial products designed to address specific market needs in each of the countries.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

El Banco Centroamericano de Integración Económica (CABEI in inglés) ha institucionalizado el modelo de Garantías Parciales de Crédito (PRG en inglés) y ahora es parte de sus servicios financieros a través de su red de Instituciones Financieras Intermediarias.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Solicitar un informe a CABEI un año después de la finalización del proyecto para conocer del estatus del programa de PRG.
[Added: 2016/12/12] [Last Updated: 2017/12/12]
Desarrollo Sostenible y Resiliencia 2017/12 Completed El infomre fue presentado a PNUD History
6. Recommendation:
  • Continuation of the dissemination of best practices and lessons learned by the early takers of PRGs will be key to increase the use of the PRG scheme in the region. The existence of the ARECA web page should be advertised more widely since it is an excellent platform for exchanging and disseminating best practices across the region.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

Luego de la Junta Directiva final del Proyecto se acordó sistematizar las buenas prácticas y lecciones del proyecto incluyendo aspectos de gestión del conocimiento.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Dar seguimiento con CABEI para la elaboración del documento de sistematización del proyecto.
[Added: 2016/12/12]
Desarrollo Sostenible y Resiliencia 2016/11 Completed
7. Recommendation:
  • Aside from working with IFIs, ARECA should also consider working with National Development Banks across the region.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

El PNUD está incluyendo a los bancos nacionales de desarrollo en otras iniciativas con el Ministerio de Ambiente principalmente para el financiamiento de proyectos de eficiencia energética, producción agroforestal y pequeñas inversiones de adaptación al cambio climático. Sin embargo, para inversiones en energía renovable no hay por los momentos avances significativos de trabajar con los bancos nacionales. Es un tema a dar seguimiento con CABEI en los próximos años.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Dar seguimiento con CABEI sobre posibles acuerdos con los bancos nacionales de desarrollo para inversiones en energía renovable.
[Added: 2016/12/12] [Last Updated: 2017/12/12]
Desarrollo Sostenible y Resiliencia 2017/12 Completed CABEI tiene el programa ARECA institucionalizado y ha logrado acuerdos con la banca nacional y con socios de la banca bilateral (KWF) para continuar con el programa de garantías parciales de crédito. History
8. Recommendation:
  • Widening the range of eligible SMREPs to include energy efficiency projects and ESCOs is another aspect that ought to be considered to widen the eligibility of projects that could applied for PRGs.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

El Banco Centroamericano de Integración Económica (CABEI in inglés) ha institucionalizado el modelo de Garantías Parciales de Crédito (PRG en inglés) y ahora es parte de sus servicios financieros a través de su red de Instituciones Financieras Intermediarias.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Solicitar un informe a CABEI un año después de la finalización del proyecto para conocer del estatus del programa de PRG.
[Added: 2016/12/12] [Last Updated: 2017/12/12]
Desarrollo Sostenible y Resiliencia 2017/12 Completed El informe fue presentado a PNUD. History
9. Recommendation:
  • The possibility of offering different coverage rations and/ or fee structure depending on the characteristics of the project should be evaluated in order to better promote investments in SMREP that would best meet the specific needs of each country. This will require looking at the type of technology, size and location, grid vs off-grid, potential for increasing the quality of life of beneficiaries and / or promising strong environmental or social benefits aside from RE generation that would best fit with the development objectives of each country.

Management Response: [Added: 2016/04/13] [Last Updated: 2016/12/12]

El PNUD ha incluido en su Nuevo Programa de País 2017 – 2021 la promoción de inversiones a pequeña escala para energía renovable en comunidades aisladas y no-conectadas a la red (Off-grid) para fines productivos y para servicios sociales críticos (Salud, educación, agua).

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Inclusión de análisis de necesidades de energía en nuevos proyectos de desarrollo rural vinculados a aspectos productivos y de inversiones sociales.
[Added: 2016/12/12] [Last Updated: 2017/12/12]
Desarrollo Sostenible y Resiliencia 2017/12 Completed Incluido en los nuevos proyectos en formulación History

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