October 27 and 28, 2011 Panama City, PANAMA

October 27 and 28, 2011Panama City, PANAMA

Daniel CameronCODI CHAIRMAN

CODI REPORT TO THE XLI COUNCIL OF EXPERTS AND

XLII MEETING OF MINISTERS

PAÍS MIEMBRO CODI Nº72 CODI Nº73 CODI Nº74Quito, Ecuador17-18/Mar/2011

Quito, Ecuador7-8/Jul/2011

Panama, Panama26-27/Oct/2011

Argentina

Barbados *

Brazil

Cuba

El Salvador

Mexico

Nicaragua

Panama

Peru

Dominican Republic

Trinidad & Tobago

Venezuela

CODI NO MEMBER COUNTRIES

Chile, Ecuador, Paraguay Ecuador

Barbados, Bolivia, Chile, Colombia, Costa Rica, Ecuador, Paraguay,

Uruguay

TOTAL PARTICIPANTS 13 9 18

CODI MEETING- 2011

* Barbados envío comunicación informando sobre la imposibilidad de participar en el CODI

MINISTERIAL DECISION

SUBJECT

XXXVIII/D/463 OLACDE

XLI/D/471: DECISION OF HAVANA (SOUTH – SOUTH COOPERATION ACTION PLAN )

XLI/D/472: BELIZE’s ADHERENCE TO OLADE

XLI/D/473: AMENDMENTS TO BYLAWS

XLI/D/474: HAITI SHARES CONDONATION

XLI/D/475: SELECTION OF AUDIT FIRM

XLI/D/476: 2011 BUDGET

XLI/D/477: NO THE ECONOMIC EMBARGO AGAINST CUBA

FOLLOW UP TO MINISTERIAL DECISIONS AND DECLARATIONS

SUBJECT

Declaration of Managua Security of supply, universal access to energy and sustainable development

MINISTERIAL DECLARATION

REUNIONES DEL CODI - 2011

CODI RESOLUTION COMPLIANCE

R72/46/11CANADA: The Permanent Secretariat is in contact with the Embassy of Canada in this country to define its inclusion as a participating country. The organization received a proposal to postpone the decision for budgetary reasons.

R72/47/11PARTICIPATION OF BARBADOS AS A CODI MEMBER COUNTRY : Barbados notification was received, informing their inability to participate in the CODI.

R72/48/11

MEASURES FOR ACHIEVING FINANCIAL BALANCE: Measures as of 2011 reflect improvements in the financial situation but continues to be negative. Proposed Restructuring of the Permanent Secretariat. Reduction of prompt payment discount to 0% since 2012.

R72/49/11

PROJECT DATA SHEET: This data sheet presents each of the projects (37), which contains: agencies and countries involved, objectives, outputs, costs, schedule, level of progress, sources of funding. These data sheets will help the CODI to make decisions about prioritization of projects and proper monitoring.Sheets available on OLADE's web page http://www.olade.org/en/directive-committee-meeting-n-74

CODI RESOLUTION

REUNIONES DEL CODI - 2011

CODI RESOLUTION COMPLIANCE

R73/50/11

FUNDING ALTERNATIVES AND DIVERSIFICATION: Partnerships and new agreements with other international organizations and agencies (IDB, CAF, ECLAC, UNIDO, UNEP, UNASUR, Government of Spain). Portfolio of new projects.

R73/51/11

FINANCIAL OUTLOOK: The financial situation, as of 2013, is not only solved by the recommended measures. The CODI instructed the Permanent Secretariat to submit a proposal, which could include increasing the quotas of the Member Countries obviously respecting individual cases, to achieve financial balance of the Organization since 2013. Brazil and Panama cooperated with the preliminary study.

R73/52/11MINISTERIAL DECLARATION OF PANAMA: Panama and the Permanent Secretariat presented a proposal that received comments by the Member Countries.

CODI RESOLUTION

TRIENNIAL PLAN 2011-2013 COORDINATION WITH INTERNATIONAL ORGANIZATIONS

Monitoring and approval ANNUAL WORK PROGRAM

Follow up participating country (CANADA AND SPAIN)

Approval of Official Missions

Restructuring of plant staff of the Permanent SecretariatHRvacancies

FOLLOW UP

PETROCARIBE

ECLAC

UNIDO

UNASUR

PROJECTS BYLAWS AND REGULATIONS

Renewable Energy Observatory– LAC

Energy Integration Observatory– LAC

Training of Member Countries

Energy Efficiency- PALCEE

Regional Energy Information System

Vulnerability of Hydropower Production Systems - Central America

Budget recommendation 2012

Ministerial Debate XLII Meeting of Ministers

Proposed agenda for the XLI Council of Experts and XLII Meeting of Ministers

EVENTS 2011 VENUE/DATE PARTICIPANTS

I Latin American and the Caribbean Oil and Gas Seminar

Quito, Ecuador12-13/Jul/2011 219 / 19 MC

IV Latin American and the Caribbean Energy Efficiency Seminar

Santo Domingo, Dominican Republic

3-4/Augst/2011190 / 25 MC

8 No Member Countries

VI Latin American and the Caribbean Carbon Forum

San Jose, Costa Rica27-29/Sep/2011 900 / 24 MC


VI Regional Energy Integration Forum

Panama, Panama24-25/Oct/2011 167 / 20 MC


FOLLOW UP EVENTS2011

EVENTS 2012 VENUE/DATE PARTICIPANTS

VI Latin American and the Caribbean Biofuel Seminar

Mexico1st Quarter

V Latin American and the Caribbean Energy Efficiency Seminar

Port Spain, Trinidad and Tobago

14-15/May/2012(in principle)

II Latin American and the Caribbean Electricity Forum

Central America and Mexico2nd Quarter

VII Latin American and the Caribbean Forum South America 3rd Quarter

II Latin American and the Caribbean Oil and gas Seminar

To be defined 3rd Quarter

VII Regional Energy Integration Forum (FIER 2011)

To be defined 4th Quarter

FOLLOW UP EVENTS 2012

OLADE AND ENERGY EFFICIENCY

Studies / Programs Training Events

Latin America n and the Caribbean Energy Efficiency Program -PALCEE (El Salvador, Grenada, Jamaica and Nicaragua)

Status and prospects of energy efficiency in Latin America and the Caribbean

Practical Energy Guide in Latin America and the Caribbean: efficient consumption and environmental responsibility

Latin American and the Caribbean Energy Efficiency Network– RED-LAC-EE

Technical Assistance to Ecuador, Guatemala, Nicaragua, Paraguay

28 Conferences have been taight in and out of the Region

Eight virtual training courses involving more than 1600 officials

Energy Efficiency Seminar(4):530 representatives25 MC and 7 No Member Countries

Ministerial Decision presented in side event of COP 16, November 2010, Cancun, Mexico

POLITICAL DECISIONS:Follow up to the Ministerial Declarations and Decisions of Medellin, Argentina and Cuba, which states:

MAKING ENERGY EFFICIENCY A SUSTAINABLE RESOURCE IN LATIN AMERICAAND THE CARIBBEAN

OLADE FINANCIAL STATEMENT

HISTORICALYEAR COMPARISON 2007 - 2010

INCOMES 2007 2008 2009 2010

Countries fees 1,272,661.00 1,271,991.00 1,277,329.74

1,300,641.17

Arrears 460,690.63 443,874.63 327,142.00 318,228.56

Other incomes 160,010.61 97,356.44 84,972.55 71,737.85

PP Discount 15% -144,272.40 -171,912.42 -132,912.90 -143,954.85

Total Income 1,749,089.84 1,641,309.65 1,556,531.39

1,546,652.73

EXPENSES

Human Resources / Installation and Repatriation 895,230.76 1,323,035.80 1,389,235.16

1,542,296.19

Official Missions / Meetings / Public Relations 85,966.07 101,746.82 98,410.52 80,764.95

Communication / Documentation 37,765.44 36,474.16 34,554.62 34,918.80

Maintenance 58,391.34 49,696.37 59,232.27 74,581.80Audit 10,000.00 10,041.02 15,000.00 6,160.00Internal Training / Quality Management System 280.00 4,941.77 3,346.74 9,774.08

Capital goods 1,674.97 27,652.75 12,452.57 1,444.77

Cooperation Projects 86,809.43 64,169.31 113,966.59 115,163.26

Total Expenses 1,176,118.01 1,617,758.00 1,726,198.47

1,865,103.85

RESULTS FOR THE YEAR 572,971.83 23,551.65 -169,667.08 -318,451.12

Source: External Audit Reports (2007, 2008, 2009 and 2010)

Note: Total revenue is net income after 15% prompt payment discount , in the first half of the year.


Source: External Audit Reports (1996-2010)

-0.800

-0.600

-0.400

-0.200

0.000

0.200

0.400

0.600

Resultado del Ejercicio sobre Total de IngresosAños 1996 a 2010

sub-title

S-D/Ingresos N

Años

Va

ria

ció

n

Financial results over Net income totalFunctional programsYears 1996 to 2010

Incomes

Val

idat

ion

Years


19961997

19981999

20002001

20022003

20042005

20062007

20082009

2010

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

INGRESOS ANUALES RELATIVOS DE OLADE (Año Base 1996)RELACIÓN ANUAL DE GASTOS/INGRESOS

INGRESOS RELATIVOS DE OLADE (Sin pago adicional Argentina- Años base 1996)

INGRESOS /ING. 1996

GASTOS / INGRESOS (anuales)

INGRESOS/ING. 1996 (Sin pago adicional Argentina)

Años

Ind

ica

do

res

Re

lativ

os

NOTE: The additional payment of Argentina fulfills a payment plan of arrears from previous years that began in 2006 and ends in 2011.

NCOME / ING. 1996 (without additional payment from Argentina)

Annual relative income of OLADE (Base Year 1996)ANNUAL RELATION OF EXPENSE / INCOMEOLADE RELATIVE INCOME (No additional payment Argentina - base year 1996)

INCOMES 1996EXPENDITURES/INCOMES (YEARLY)INCOMES 1996 (No additional Argentina’s payment)

Rel

ativ

e I

ndic

ato

rs

Years


19961997

19981999

20002001

20022003

20042005

20062007

20082009

2010

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

IPC de EEUU, ECUADOR (Índices Relativos)Ingresos y gastos anuales relativos de OLADE

Año base 1996

Inflación EEUU

Inflación Ecuador

Ingresos relativos

Egresos relativos

Años

Índ

ice

s re

lativ

os

Notes: CPI is considered in Ecuador since 2002 (in the period 1996-1999 there was hyperinflation of local currency, Sucre; since 2000 the country adopted the dollar and there was an adaptation period of 2 years)

Sources: Central Bank of Ecuador, U.S. Bureau of Labor Statistics .

USA, ECUADOR CPI ( Relative Indexes) Relative annual income and expenses of OLADE

Base year 1996

USA InflationEcuador InflationRelative IncomeRelative Expenditures

Rel

ativ

e I

ndic

ato

rs

Years


INCOME Current Structure Proposed Structure

Countries Fees (1) 1,482,318.00 1,482,318.00

Arrears (2) 132,000.00 132,000.00

Other Income (3) 146,982.00 146,982.00

Events (4) 62,000.00 62,000.00

total Income 1,823,300.00 1,823,300.00

Discount 15% (5) -120,000.00 -120,000.00

Net Income 1,703,300.00 1,703,300.00

EXPENSES

Human Resources. International Category staff officials (6) 1,073,202.00 867,429.00

Human Resources. Local staff officials (6) 610,798.00 696,571.00

Installation, and Repatriation 28,000.00 28,000.00

Official Missions/Meetings/Public Relations 64,300.00 64,300.00

Communications/ Documentation 50,000.00 50,000.00

Maintenance 42,000.00 42,000.00

Audit 10,000.00 10,000.00

Internal Training/ Quality Management System 10,000.00 10,000.00

Capital goods 5,000.00 5,000.00

Cooperation Projects 50,000.00 50,000.00

total expenses 1,943,300.00 1,823,300.00

RESULTS FOR THE YEAR -240,000.00 -120,000.00

EXPLANATORY NOTES:

(1) The contributions of Member Countries, is contemplated100% of payments..

(2) In 2011 arrears from Argentina will be canceled and US$ 132.000 is expected to be recovered outstanding debts by 2012.

(3) Recovery of VAT, sales of products and services of OLADE, recovery of project costs

(4) Events must be fully funded by sponsorships. Sponsorships are considered to exceed the costs of logistics and transportation.

5) 15% discount for prompt payment. Has been kept.

(6) Human Resources: existing structure, includes 2 Directors, 9 International Coordinators and 23 local offices.The proposed structure includes: 2 Directors, 6 International Coordinators, 1 GAF, 24 local officers

PROJECTED INCOME AND EXPENSESYear 2012 (With cash discount of 0%)


PROJECTED INCOME AND EXPENSESYear 2012 (With cash discount of 0%)

INCOME Current Structure Proposed Structure

Countries Fees (1) 1,482,318.00 1,482,318.00

Arrears (2) 132,000.00 132,000.00

Other Income (3) 146,982.00 146,982.00

Events (4) 62,000.00 62,000.00

total Income 1,823,300.00 1,823,300.00

Discount 15% (5)

Net Income 1,823,300.00 1,82,300.00

EXPENSESHuman Resources. International Category staff officials (6)

1,073,202.00 867,429.00

Human Resources. Local staff officials (6) 610,798.00 696,571.00




Maintenance 42,000.00 42,000.00

Audit 10,000.00 10,000.00

Internal Training/ Quality Management System 10,000.00 10,000.00

Capital goods 5,000.00 5,000.00


total expenses 1,943,300.00 1,823,300.00

RESULTS FOR THE YEAR -120,000.00 0.00

EXPLANATORY NOTES:

(1) The contributions of Member Countries, is contemplated100% of payments...

(2) ) In 2011 arrears from Argentina will be canceled and US$ 132.000 is expected to be recovered outstanding debts by 2012.

(3) Recovery of VAT, sales of products and services of OLADE, recovery of project costs

(4) Events must be fully funded by sponsorships. Sponsorships are considered to exceed the costs of logistics and transportation.

5) It is considered the 0% discount for early payment..

(6) Human Resources: existing structure, includes 2 Directors, 9 International Coordinators and 23 local offices.The proposed structure includes: 2 Directors, 6 International Coordinators, 1 GAF, 24 local offices


PROJECTED INCOME AND EXPENSES WITH THE NEWSTRUCTURE OF THE PERMANENT SECRETARIAT SINCE 2012

Years 2012 - 2013

INCOME 2012 2013

Countries Fees (1) 1,482,318.00 1,482,318.00

Arrears (2) 132,000.00 70,000.00

Other Income 146,982.00 120,000.00

Events 62,000.00 60,000.00

total Income 1,823,300.00 1,732,318.00

Discount 15% (3) .00 .00

Net Income 1,823,300.00 1,732,318.00

EXPENSES

Human Resources. (International Category staff officials) (4) 867,429.00 867,429.00

Human Resources. Local staff officials 696,571.00 696,571.00




Maintenance 42,000.00 42,000.00

Audit 10,000.00 9,000.00

Capital goods 5,000.00 5,000.00


total expenses 1,823,300.00 1,825,000.00

RESULTS FOR THE YEAR .00 -92,682.00

(1) In the years 2012 and 2013 is considered the payment of 100% of the contributions of Member Countries

(2) Since 2012 Argentina will no longer make additional payment for arrears of previous years, balances paid in 2011. It provides an important effort to recover outstanding arrears.

(3) It is considered a prompt payment discount of 0%.

(4) In 2011 the figure is less to what it corresponds due to the current structure, since the plant staff is not complete


PROJECTED INCOME AND EXPENSES WITH THE NEWSTRUCTURE OF THE PERMANENT SECRETARIAT

Years 2014 – 2015 - 2016

EXPENSES 2014 2015 2016

Human Resources. (International Category staff officials) (1) 889,114.73 911,342.59 934,126.16

Human Resources. Local staff officials (1) 713,985.28 731,834.91 750,130.78

Installation, and Repatriation(2) 95,000.00 16,000.00 28,000.00

Official Missions/(3) 40,000.00 41,200.00 42,436.00

Communications(4) 31,050.00 32,100.00 33,200.00

Documentation 18,630.00 19,280.00 19,950.00

Maintenance 41,400.00 42,900.00 44,350.00

Meetings/ 23,800.00 24,600.00 25,500.00

Audit 9,000.00 8,000.00 8,300.00

Public Relations 2,580.00 2,670.00 2,770.00

Internal Training 5,000.00 5,000.00 5,000.00

Capital Goods 5,000.00 5,000.00 5,000.00

Quality Management System 5,000.00 5,000.00 5,000.00

Cooperation Projects 75,000.00 85,000.00 85,000.00

Total Expenses 1,954,560.00 1,929,927.50 1,988,762.94

(1Human Resources is composed of complete plant approved since October 2011 with an annual increase of 2.5% (partial recovery of the local inflation)

(2) Instalation and repatriation includes new international plant staff in the new administration of 2014.

(3= An increase of 3% in official missions since 2015.

(4) Communications and other local costs, includes an increase of 3.5% for estimated inflation in Ecuador and leveling of prices.


CONCLUSIONS

After analyzing the financial situation of the Organization, we have deemed appropriate to look to the past, present and future, to see not only the current situation, but the trend into the future and understand the magnitude of the situation.

While the proposed deficit has been growing in recent years, administrative decisions of reorganization without loss of ability to execute solve in part the situation.

In addition to the above, the elimination of prompt payment discount balances the situation until the end of 2012.

In 2013 we will be facing a deficit of just over U $ 90.000, and during 2014 to 2016, when reasonably projecting the variables, the deficit would be between $ 170,000 and $ 230,000 annually.

PROPOSALS

I believe that the organization, in order to optimize its operation in time, in a prudent and reasonable basis, it should resolve in this XLII Meeting of Ministers the financial situation until 2012 included, such a question would be achieved as follows: a) Approving the draft of the Ministerial Decision XLII / D / 482 of Amendments to the Bylaws (restructuring of the Permanent Secretariat), this decision does not omit implementation capacity; b) Sharing and accepting the proposal of the Directive Committee (RT4/54/11)of eventually taking the prompt payment discount to zero.

Additionally we recommend to the XLII Meeting of Ministers to instruct the CODI to prepare, for April 2012, the alternative solutions to the deficits evaluated as likely to be present in 2013 to 2016, preferably analyzing the way of obtaining resources from services supplied to third parties and / or by defining a benefit for the organization of the events performed throughout the year.

DECLARATION AND MINISTERIAL DECISIONS PROPOSAL TO BE CONSIDERED AT THE XLII

MEETING OF MINISTEERS


SUBJECT


SUBJECT

Declaration of Panama Integration and Energy Security

XLII/D/479: 2012 BUDGET

XLII/D/480: SELECTION OF AUDIT FIRM

XLII/D/481:RATIFICATION SUPPORT TO CUBA AGAINST ITS ECONOMIC EMBARGO

XLII/D/482:AMENDMENTS TO BYLAWS RESTRUCTURINGPERMANENT SECRETARIAT)

XLII/D/483:COOPERATION TO HAITI’s ENERGY SECTOR.

INSTRUCTION

Preparation of alternativesolutions to the deficits evaluated as likely to be present in 2013 to 2016,

“preferably” analyzing the way of obtaining resources from services supplied to third

parties and / or by defining a benefit for the organization of

events held by the Organization throughout the

year.

Documents

October 27 and 28, 2011 Panama City, PANAMA