Public Disclosure Copy The World Bank Implementation Status & Results Report Catastrophe Development Policy Loan DDO (P120860) Catastrophe Development Policy Loan DDO (P120860) LATIN AMERICA AND CARIBBEAN | Peru | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Development Policy Lending | FY 2011 | Seq No: 12 | ARCHIVED on 06-Mar-2018 | ISR30966 | Implementing Agencies: Ministry of Economy and Finance, Unidad de Coordinación de Cooperación Técnica y Financiera - UCCTF Key Dates Key Project Dates Bank Approval Date:09-Dec-2010 Effectiveness Date:20-Jan-2011 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:-- Original Closing Date:09-Dec-2013 Revised Closing Date:09-Dec-2019 Program Development Objectives Program Development Objective (from Program Document) The development objective of the proposed operation is to strengthen the Government’s capacity to mobilize resources in the case ofdisaster and to promote risk reduction. PHRPDODEL Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Low  Low Implementation Status and Key Decisions The Project was approved by the Board on December 9, 2010 and declared effective on January 20, 2011. The project has been renewed twice, the first renewal in 2013 and the second renewal in 2016.The new closing date is December 9, 2019. The GoP has continued implementation of the DRM Program and has shown progress towards achieving the PDO and is being implemented in a satisfactory manner. Overall there has been progress along all three policy areas in the program: Policy Area 1 Risk reduction policies in public investments; Policy Area 2 Vulnerability reduction actions in GoP priority sectors; Policy Area 3 Financial protection mechanisms against disasters resulting from natural events. Risks Systematic Operations Risk-rating Tool 3/6/2018 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Catastrophe Development Policy Loan DDO (P120860) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Low  Low Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Low  Low Results Results Indicators PHINDIRITBL  National Budget 2017, 2018 and 2019 includes specific allocations for the Budgetary Program 068 (PP068) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 54.40 748.00 875.00 0.00 Date 30-Dec-2010 30-May-2017 08-Nov-2017 09-Dec-2019 Comments This indicator is on track. For 2018 the national budget allocation for the budgetary program 068 (PP068) is S/ 875m. In addition, MEF created a Fund for natural disaster interventions (FONDES) in June 2016 with an initial budget of S./ 300m to finance mitigation, rehabilitation, reconstruction public investment projects. In 2017 due to the El Nino Costero impacts S/ 1,500m was assigned to the Fund in line with PP068 to finance emergency response, rehabilitation and reconstruction activities. PHINDIRITBL  MEF continues to implement the Financial Protection Strategy against disasters mobilizing new financial instruments to reduce the fiscal impact of disasters, including insurance for public assets and (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Financial Protection Multisectoral One risk Strategy against Commission for the fund transfer Disasters was for natural disasters instrument/mec SNIP 2008 for emergency presented to (FONDES) established. hanism under Value projects SINAGERD and was US$200 million risk the published in July 2016. insurance designed to implementation The Fund for natural cover earthquake risks framework of disasters will be base issued. the Financial 3/6/2018 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Catastrophe Development Policy Loan DDO (P120860) for the financial Protection strategy. Strategy Date 30-Dec-2010 30-May-2017 23-Feb-2018 09-Dec-2019 Comments The indicator is on track. MEF continues to implement the Financial Protection Strategy against disasters. In June 2016 the the Fund for natural disasters (FONDES), was approved and created, and in May 2017 the Multisectoral Commission for FONDES was established. On February 7, 2018, the World Bank issued catastrophe bonds that will provide a total of US$1.36 billion in earthquake coverage to Chile, Colombia, Mexico and Peru. Peru will have US$200 million in risk insurance designed to cover earthquake risks. The triggers are parametric and the insurance will provide coverage for three years. PHINDIRITBL  At least 30 of the EPS have established contingent funds for disaster risk management in their new pricing structure (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 26.00 30.00 Date 30-Dec-2010 30-May-2017 08-Nov-2017 09-Dec-2019 Comments This indicator is on track. 26 water and sanitation service companies (EPS) have established contingent funds for disaster risk management in their new pricing structure. In addition, the National Sanitation Plan was approved in June 2017 and incorporates DRM under the guidelines for Policy 3 and 5. The approval of this Plan which incorporates DRM was a key expected result during the second renewal in 2016. PHINDIRITBL  Update the guidelines to include disaster risk management policies in public investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target February 24, 2017 the The “Minimum content new multi-year public to elaborate pre- MEF has investment system was investment studies for issued sector approved (Invierte.Pe) investment projects for guidelines for The National Public which replaced the post-disaster recovery” post-disaster Investment System (SNIP) National Public was approved in rehabilitation Value includes a specific Investment System October 2017. MEF is for framework for emergency (SNIP). MEF is updating the guidelines infrastructure in projects updating the guidelines to include disaster risk three sectors: to include disaster risk reduction policies in line W&S, reduction policies in with the new public Education, and line with the new public investment system in the Health investment system country Date 30-Dec-2010 30-May-2017 08-Nov-2017 09-Dec-2019 3/6/2018 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Catastrophe Development Policy Loan DDO (P120860) Comments This indicator is on track. The “Minimum content to elaborate pre-investment studies for investment projects for post-disaster recovery” was approved by MEF in October 2017. MEF is continuing to work on updating the guidelines to include disaster risk management policies in line with the new public investment system Invierte.Pe approved in February 2017. PHINDIRITBL  Retrofitting works have initiated in at least five hospitals which have finalized structural vulnerability studies (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 31-Dec-2010 30-May-2017 08-Nov-2017 09-Dec-2019 Comments This indicator is on track. Ministry of Health (MINSA) and the National Engineering University (UNI) signed an agreement in October 2017, for the preparation of technical requirements for the retrofitting of 5 hospitals: Dos de Mayo, Hipólito Unanue, Cayetano Heredia, Arzobispo Loayza and Maria Auxiliadora. Once the technical work is completed, the Ministry of Health will prioritize resources in its budget for the implementation of these structural retrofitting projects. This agreement represents a significant advance in the indicator progress. PHINDIRITBL  MINSA hospitals evaluated with the Hospital Safety Index (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 -- -- 91.00 Date 31-Dec-2010 09-Dec-2013 09-Dec-2013 09-Dec-2013 Comments The target result was achieved. during the first renewal. No new target in this line of action. The key expected result for September 2013 was: 90% of MINSA hospitals evaluated with the Hospital Safety Index. This was achieved, 91% (46 unit) Hospitals and Institutes were evaluated. 3/6/2018 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Catastrophe Development Policy Loan DDO (P120860) PHINDIRITBL  Risk Analysis is included in all Public Investment Projects (PIPs) for new hospitals (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target All PIPs for new hospitals built No progress. No new No progress. No new after 2011 hospitals have been hospitals have been built Value 0.00 include risk built since 2013 since 2013 analysis during the formulation phase Date 30-Dec-2010 30-May-2017 08-Nov-2017 09-Dec-2019 Comments No new public investment projects (PIPs) with risk analysis, no new hospitals have been built since 2013. Overall Comments Overall the DRM program is being implemented in a satisfactory manner. The DRM program of actions, objectives and policies designed to strengthen the Government’s capacity to mobilize resources in the case of disaster and to promote risk reduction is underway and there has been positive progress. In addition, the team would like to highlight that in 2017 the recent institutional changes in the DRM Law (SINAGERD), the impacts of El Nino Costero and the government’s focus on the reconstruction have affected the pace of implementation with some expected results taking longer to be achieved. However, achieving the overall objective of this program is on track. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120860 IBRD-79760 Effective USD 100.00 100.00 0.00 0.00 100.00 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120860 IBRD-79760 Effective 09-Dec-2010 21-Dec-2010 20-Jan-2011 09-Dec-2013 09-Dec-2019 Tranches Restructuring History 3/6/2018 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Catastrophe Development Policy Loan DDO (P120860) There has been no restructuring to date. Related Operations There are no related projects. 3/6/2018 Page 6 of 6 Public Disclosure Copy