The World Bank Report No: ISR14982 Implementation Status & Results Peru Second Programmatic Fiscal Mgmt and Competitiveness Development Policy Loan (P101590) Public Disclosure Copy Project Name: Second Programmatic Fiscal Mgmt and Competitiveness Program Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 28-Jun-2014 Development Policy Loan (P101590) Country: Peru Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 05-Aug-2008 Original Closing Date 05-Aug-2011 Planned Mid Term Review Date Last Archived ISR Date 07-Dec-2013 Effectiveness Date 12-Dec-2008 Revised Closing Date 16-Jan-2015 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The development objective of the series of DPLs under this program is to support growth-enhancing reforms and poverty alleviation. The reform agenda supported by this loan focuses on two broad policy areas: (i) efficiency and quality of public expenditure, and (ii) improved competitiveness. Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Highly Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview The reforms supported by this programmatic series of loans continue to be implemented. This loan and the supplemental Additional FInancing Loan (P115120) were both Public Disclosure Copy implemented with a Deferred Drawdown Option (DDO). Given the continued uncertainty that surrounds the global economic outlook in the wake of financial crisis of 2008-2009, the authorities have made a strategic choice of maintaining an undisbursed amount as a contingent line of credit while drawing on the traditional DPLs for immediate budget support. In keeping with that strategy the authorities requested a three-year extension of the closing date for this loan, to August 5, 2014, which was granted by the Bank. In April 2014, they drew on $150million of the DDO. The second DDO in these series is due to close on January 16, 2015. Results Results Indicators Page 1 of 3 The World Bank Report No: ISR14982 Indicator Name Core Unit of Measure Baseline Current End Target Stock of public debt to GDP Text Value 37.7% of GDP 19.2% 18% if no adverse external shocks or 32% if some Public Disclosure Copy external shocks Date 31-Dec-2005 30-Dec-2013 31-Dec-2011 Comments The level of debt is declining and is impressively low, given the aftermath of the global economic crisis and sluggish international recovery Fiscal balance of the consolidated public Percentage Value -0.30 0.80 -1.00 sector, percent of GDP Date 31-Dec-2005 30-Dec-2013 Comments There is fiscal surplus. The The target is to keep fiscal target is over-achieved. balance at -1.0 percent of GDP or higher. Tax revenue of the central government, as Percentage Value 13.90 16.00 16.00 percent of GDP Date 30-Dec-2013 Comments End target achieved. Share of the national and regional Percentage Value 43.30 7.00 governments' budget that is linked to Date 31-Mar-2014 performance indicators Comments There was no link to The share of budget linked to performance indicators for performance indicators kept any budgetary expenditure. growing and continues to be substantially higher than the target. Data on Financial Performance (as of 07-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P101590 IBRD-75880 Effective 05-Aug-2008 01-Dec-2008 12-Dec-2008 05-Aug-2011 05-Aug-2014 P101590 IBRD-76490 Effective 18-Dec-2008 16-Jan-2009 18-Mar-2009 18-Dec-2011 16-Jan-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101590 IBRD-75880 Effective USD 370.00 370.00 0.00 370.00 0.00 100.00 P101590 IBRD-76490 Effective USD 330.00 330.00 0.00 0.00 330.00 0.00 Tranches Page 2 of 3 The World Bank Report No: ISR14982 Tranche 1 Description This is a one tranche operation. Public Disclosure Copy Amount (USD) Expected Release Date Actual Release Date Status 370 21-Oct-2008 01-Dec-2008 Pending Released Tranche Condition Description Status If Not Met If Delayed No effectiveness conditions on the Bank side. Met Not Met Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Operations P101335-Fiscal Management and Competitiveness Development Policy Loan, P106720-Third Programmatic Fiscal Management & Comp. DPL, P115120-Second Programmatic Fiscal Mgmt and Competitiveness Development Supplemental Financing, P116214-Fourth Programmatic Fiscal Managment Development Policy Loan Public Disclosure Copy Page 3 of 3