Cooling intense high-energy hadron beams remains a major challenge for accelerator physics. Synchrotron radiation is too feeble, while efficiency of two other cooling methods falls rapidly either at high bunch intensities (i.e. stochastic cooling of protons) or at high energies (i.e. e-cooling). The possibility of coherent electron cooling, based on high-gain FEL and ERL, was presented at last FEL conference. This scheme promises significant increases in luminosities of modern high-energy hadron and electron-hadron colliders, such as LHC and eRHIC. In this paper we report progress made in the past year on the development of this scheme of coherent electron cooling (CeC), results of analytical and numerical evaluation of the concept as well our prediction for LHC and RHIC. We also present layout for proof-of-principle experiment at RHIC using our R&D ERL which is under construction.