REPUBLICA DE HONDURAS SECRETARIA DE FINANZAS

UNIDAD ADMINISTRADORA DE PROYECTOS

Tegucigalpa, MDC, March 24, 2011 Oficio No. UAP-890-2011

Mrs. PATRICIA BLISS-GUEST Program Manager Administrative Unit, Climate Investment Funds Washington DC

Dear Mrs. Bliss-Guest,

According to the Scoping Mission, held February 2 and 3 of 2011, in Tegucigalpa, Honduras, is pleasant to attach for the Committee consideration and approval the Format for Requesting Advance of the Investment Preparation Grant. With the purpose to start fulfilling all the requirements to prepare an Investment Plan, and help identify the renewable energy project portfolio of our country.

I would like to thank you for your attention, and take this occasion to express the assurances of my highest consideration and esteem.

Ref: Format for Requesting Advance of Investment Preparation Grant for Phase 1 Activities

Annex I - Format for Requesting Advance of the Investment Preparation Grant or Investment

Preparation Grant for Phase 1 Activities

Scaling Up Renewable Energy in Low Income Countries

Summary - Preparation Grant Proposal for the Development of the Investment Plan

1. Country/Region: HONDURAS 2. CIF Project ID#: (Trustee will assign ID)

3. Date of the Scoping Mission (if applicable)

FEBRUARY 2 - 4, 2011

4. Date of the First Joint Mission (if applicable):

June 20 - 24, 2011 (to be confirmed)

5. Funding Request (USD): USD $ 375,000.00 MDB: Interamerican Development Bank (IDB)

6. Type of request Advance preparation grant: Yes 6. Type of request

Full preparation grant: Yes/No

Ifyes, please indicóte the amount and date ofthe previous requestsfor

the preparation grant:

7. MDB SREP Focal Point and Project/Program Task Team Leader (TTL):

Headquarters-SREP Focal Point:

Edgar Restrepo (IFC), Xiaping

Wang (WB), Wesly Ureña (IDB)

TTL:

Edgar Restrepo (IFC), Xiaoping Wang (WB), Wesly Ureña (IDB)

8. National Implementing Agency: Secretary of Finance (Secretaria de Finanzas de Honduras or SEFIN)

9. Description of activities covered by the preparation grant:

• Establish the two Governance levéis for the SREP implementation: the SREP Committee for executive decision-making that include key government agencies such as the Secretary of Presidence, Secretary of Finance (SEFIN), Secretary of Natural Resources and Environment (SERNA), National Energy Commission (CNE), Empresa Nacional de Energía Eléctrica (ENEE) and prívate sector representatives; and the SREP Coordination Team for operative purposes (located withín SEFIN).

• Prepare TORS for the consultants to conform the SREP Coordination Team; • Execute the recruitment process for the consultants that will be part of the SREP

Coordination Team; • Prepare a report to take inventory of:

A) the completed, ongoing or planned studies made by government institutions and

cooperation agencies about renewable energy development;

B) the existíng and planned laws, regulations and policíes related to the

development of renewable energy;

C) a list of completed, ongoing and planned renewable energy investments/programs

(projects) that are developed by the government, prívate sector, and cooperation

agencies; and

D) Share the above mentioned report with the MDBs prior the preparation of the

TOR for the Joint Mission;

• Review the existing renewable energy project portfolio and identify those programs/investments that are eligible for SREP financing, with partner financial institutions that might be interested and/or consider to leverage the SREP resources. This portfolio shall be sustainable and technically, legally (withín the regulatory framework), and fínancially feasible;

• Prepare a proposal for additional technícal assistance activities withín the SREP framework (during preparation and to include as programs/investments in the Investment Plan, financing in order to support the investment plan preparation for the next SREP mission.

• Additional technícal assistance activities to be identified and initiated before the first Joint Mission, subject to discussions and agreement with the MDBs.

• Expected outcomes: • The Government of Honduras will define the Governance of the SREP

Implementation and will present a documented legal and regulatory framework under which the deployment of renewable energies in the country will be achieved.

• The Government will prepare jointly with the MDBs the TOR for the Joint Mission

• The SREP committee and SREP coordination team will be in place. • SREP coordination team is equipped with highly qualified professionals with

adequate coordination and technical capacities; • The stock-taking exercise will be completed;

• Deliverables and timeframe:

• SREP coordination team consultants hired by March 15, 2011 • Stock-taking report completed by the Joint mission • A preliminary list of renewable energy programs/investments eligible for the SREP

funds, as well as other suitable partners for the co-financing shall be identified by the Joint Mission;

• A preliminary list of proposed technical assistance activities to be funded by SREP identified by the Joint Mission.

• Budget (indicative): Expenditures1 Amount (USD) - estimates

Consultants and Consulting services US$ 150,000

Equipment US$ 47,500

Workshops/seminars US$ 60,000

Travel/transportation US$ 60,000

Others (admin costs/operational costs) US$ 20,000

Contingencies (max. 10%) US$ 37,500

Total Cost US$ 375,000

Other contributions:

1 These expenditure categories may be adjusted during project preparation according to emerging needs.

• Government

• M D B

• Prívate Sector

Total - Other contributions:

• Timeframe (tentative) -milestones

Tentative Date for First Joint Mission: June 20-24, 2011 Tentative Date for Final Joint Mission: September, 2011 Investment Plan for SREP Sub-Committee Endorsement: October, 2011

Other Partners involved in the Investment Plan design and implementation2: CABEI, UNDP, bilateral development agencies, local financial institutions and prívate sector

stakeholders. • If applicable, explanation for why the grant is MDB executed:

N.A.

• Implementation Arrangements (ind. procurement of goods and services):

SEFIN as the national implementing agency will be responsíble for administration of SREP funds, includíng hiring consultants, procurement of goods and services, etc. SEFIN will follow the procurement guidelines of the MDB through which the SREP funds are channeled.

2 Other local, national and international partners expected to be involved in design and implementation of the Investment Plan.

REPUBLICA DE HONDURAS SECRETARIA DE FINANZAS

PROGRAMA PARA EL DESARROLLO DE ENERGÍAS RENOVABLES FINANCIAMIENTO FONDO S DE INVERSIÓN CLIMATICA (CIF)

PLAN DE ADQUISICIONES

BIENES (Equip 1 Monto Estimado, en u$s Monto Estimado, en u$s

Equipo de Computo 23,750.00 11/04/2011 06/05/2011 20/05/2011

Equipo de Oficina 9,500.00 11/04/2011 06/05/2011 20/05/2011

Mobiliario 14,250.00 11/04/2011 09/05/2011 31/05/2011

TOTAL ADQUISICION DE EQUIPO 47,500.00

Consultores individuales 90,000.00 25/04/2011 23/05/2011 31/12/2011

Consultores Firmas 60,000.00 09/05/2011 06/06/2011 30/09/2011

TOTAL CONSULTORÍAS (Consultants and Consulting services) 150,000.00

CAPACITACIONES (Workshop/seminars

Cursos de capacitación 24,000.00 02/05/2011 * 31/12/2011

Pasantías 24,000.00 02/05/2011 * 31/12/2011

Talleres 12,000.00 02/05/2011 * 31/12/2011

TOTAL CAPACITACIONES (Workshops/seminars) 60,000.00

* Varias fechas conforme a definición del programa de capacitación

SERVICIOS DE NO CONSULTORÍA (Travel/transportation)

Visitas de socialización 18,000.00 02/05/2011 * 31/12/2011

Visitas a proyectos 18,000.00 02/05/2011 * 31/12/2011

Reuniones (Meetings) ó juntas internacionales 24,000.00 02/05/2011 * 31/12/2011

SERVICIOS DE NO CONSULTORÍA (Travel/transportation) 60,000.00

* Varias fechas conforme a definición del programa de visitas 1 GASTOS OPERATIVOS (admin costs/ operational costs)

Nombre del Contrato: l 1 Servicios públicos y de comunicación 3,000.00 11/05/2011 31/12/201,

Contratación de personal 8,000.00 11/04/2011 16/05/2011 31/12/2011

Materiales y útiles 6,000.00 11/04/2011 16/05/2011 31/12/2011

Otros 3,000.00 11/04/2011 30/06/2011 31/12/2011

GASTOS OPERATIVOS (admin costs/ operational costs) 20,000.00

CONTINGENCIAS

Nombre del Contrato : Monto Estimado, en uSs

Contingencias 37,500.00

TOTAL CONTINGENCIAS 37,500.00

EJECUCION TOTAL $ 375,000.00