Document of The World Bank Report No: ICR2526 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-79450) ON A LOAN IN THE AMOUNT OF US$450 MILLION TO THE UNITED MEXICAN STATES FOR A FRAMEWORK FOR ADAPTATION TO CLIMATE CHANGE IN THE WATER SECTOR DEVELOPMENT POLICY LOAN June 27, 2013 Sustainable Development Department Mexico and Colombia Country Management Unit Latin America and the Caribbean Region CURRENCY EQUIVALENTS (Exchange Rate Effective June 25, 2013) Currency Unit = Mexican Peso MX$1.00 = US$0.07 US$1.00 = MX$13.17 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AWGA Alliance for Global Water Adaptation BANSEFI National Bank of Savings and Financial Services (Banco de Ahorro Nacional y Servicios Financieros) RBC River Basin Council (Consejos de Cuenca) RBO River Basin Organization (Organizaciones de Cuenca) CCA Climate Change Adaptation CICC Inter-Ministerial Commission on Climate Change (Comisión Intersecretarial de Cambio Climático) CONAFOR National Forest Commission (Comisión Nacional Forestal) CONAGUA National Water Commission (Comisión Nacional del Agua) COTAS Aquifer Technical Committee (Comités Técnicos de Aguas Subterraneas) COP 16 Conference of the Parties 16 DPL Development Policy Loan FY Fiscal Year GEF Global Environment Facility GOM Government of Mexico ha Hectares IBRD International Bank for Reconstruction and Development ICR Implementation Completion Report IFI International Financial Institutions IMTA Mexican Institute for Water Technology (Instituto Mexicano de Tecnología de Agua) INEC National Institute of Ecology and Climate Change (Instituto Nacional de Ecología y Cambio Climático) ISR Implementation Status and Results Report IWRM Integrated Water Resource Management KPI Key Performance Indicator M&E Monitoring and Evaluation PDO Project Development Objective PECC Special Program for Climate Change (Programa Especial de Cambio Climático) PER Public Expenditure Review PMTUR Program for Modernization and Technology Upgrade of Irrigation Units PND National Development Plan (Plan Nacional de Desarrollo) PNH National Water Program (Programa Nacional Hídrico) PROTAR Wastewater Treatment Program (Programa de Tratamiento de Aguas Residuales) SEMARNAT Ministry of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales) SFA Water Financial System (Sistema Financiero del Agua) SPRMPA Special Program for the Restoration of Micro-watersheds in Priority Areas (Programa Especial para la Restauración de la Microcuencas en Zonas Prioritarias) TAP Technical Assistance Program (Programa de Asistencia Técnica) UNFCCC United Nations Framework Convention on Climate Change WTFP Wastewater Treatment Funding Program Vice President: Hasan Tuluy Country Director: Gloria M. Grandolini Sector Manager: Wambui G. Gichuri Task Team Leader: Alessandra Campanaro ICR Team Leader Alessandra Campanaro MEXICO FRAMEWORK FOR ADAPTATION TO CLIMATE CHANGE IN THE WATER SECTOR DEVELOPMENT POLICY LOAN TABLE OF CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Program Context, Development Objectives and Design ............................................ 1  2. Key Factors Affecting Implementation and Outcomes .............................................. 3  3. Assessment of Outcomes ............................................................................................ 7  4. Assessment of Risk to Development Outcome ......................................................... 15  5. Assessment of Bank and Borrower Performance ..................................................... 16  6. Lessons Learned........................................................................................................ 17  7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 19  Annex 1. Bank Lending and Implementation Support/Supervision Processes............. 20  Annex 2. Beneficiary Survey Results ........................................................................... 22  Annex 3. Stakeholder Workshop Report and Results ................................................... 23  Annex 4. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 24  Annex 5. Comments of Co-financiers and Other Partners/Stakeholders ...................... 28  Annex 6 – Stages of Climate Change Engagement in Mexico ..................................... 29  Annex 7 - Main Policy Actions Taken and Corresponding Outcomes ......................... 30  Annex 8. List of Supporting Documents ...................................................................... 37  Annex 9. Interviews Conducted during the ICR Mission ............................................. 38  Annex 10. Maps ............................................................................................................ 39  A. Basic Information Adaptation to Climate Change Country: Mexico Project Name: in the Water Sector Development Policy Loan Project ID: P120134 L/C/TF Number(s): IBRD-79450 ICR Date: 06/27/2013 ICR Type: Core ICR Lending Instrument: DPL Borrower: GOVERNMENT OF MEXICO Original Total USD 450.00M Disbursed Amount: USD 450.00M Commitment: Environmental Category: C Borrower: United Mexican States Implementing Agency: National Water Commission (CONAGUA) and Secretariat of Environment and Natural Resources (SEMARNAT) Co-financiers and Other External Partners: N.A. B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 02/24/2010 Effectiveness: 12/13/2010 12/13/2010 Appraisal: 04/19/2010 Restructuring(s): Approval: 06/10/2010 Mid-term Review: Closing: 12/31/2012 12/31/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Satisfactory Implementing Agency / Quality of Supervision: Satisfactory Satisfactory Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project at No Quality at Entry (QEA): None any time (Yes/No): Problem Project at any time Quality of Supervision No None (Yes/No): (QSA): DO rating before Moderately Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Forestry 16 16 General water, sanitation and flood protection sector 84 84 Theme Code (Primary/Secondary) Climate change 14 14 Environmental policies and institutions 14 14 Water resource management 72 72 E. Bank Staff Positions At ICR At Approval Vice President: Hasan Tuluy Pamela Cox Country Director: Gloria M. Grandolini Gloria M. Grandolini Sector Manager: Wambui G. Gichuri Guang Zhe Chen Gustavo Saltiel & Project Team Leader: Alessandra Campanaro Alessandra Campanaro ICR Team Leader: Alessandra Campanaro ICR Primary Authors: Maria Cecilia Zanetta F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document – PAD) The objective of the operation was to support the government's efforts to advance its strategy for adaptation to climate change in the water sector by: PDO 1. Strengthening the institutional framework and monitoring capacity in integrated water resources management (IWRM), and PDO 2. Mainstreaming adaptation to climate change in water programs. Revised Project Development Objectives (as approved by original approving authority) The PDOs were not modified during the life of the loan. (a) PDO Indicators Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years Policy Area 1 – Strengthening of the institutional framework and monitoring capacity in Integrated Water Resource Management (IWRM) CONAGUA has established water quality monitoring sites in 13 river basin Indicator 1 organizations. Value quantitative or 400 1,500 5,000 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (333% achievement): The implementation of a new water quality Comments monitoring system is a significant achievement. The improvement with respect to the (incl. % previous system is not only in terms of expanded number of sites and coverage, but achievement) also the frequency and the number of parameters being measured. Indicator 2 CONAGUA is operating piezometric gauges. Value quantitative or 220 370 370 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (100% achievement): There are 370 piezometer gauges operational, Comments which provide measurements of static pressures for underground water and report (incl. % data in real time. This constitutes a 68 percent increase with respect to 2007. achievement) CONAGUA plans to triple the number of piezometer gauges by 2018. Indicator 3 CONAGUA maintains and operates the hydro climatic stations. Value quantitative or 3,700 3,700 3,692 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (99.8% achievement): CONAGUA continues to maintain its network of Comments hydrometric and climatologic stations, of which 900 report data on a daily basis. Of (incl. % these, 2,100 are operated directly by CONAGUA and the remaining ones are operated achievement) by third parties under institutional agreements. CONAGUA has conducted 56,347 radio sounding measurements (baseline =3,787 Indicator 4 annually) Value A total of 56,347 quantitative or 3,787 per year 30,264 measurements Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Not Achieved (54% achievement): The anticipated target was not achieved due to Comments the insufficient budgetary resources between 2007 and 2010 as well as cumbersome (incl. % procurement and distribution procedures, which affected the purchase of needed achievement) inputs. These problems have now been solved and radio sounding measurements are being conducted regularly. Indicator 5 CONAGUA has developed 18 additional plans for aquifers management. Value quantitative or 0 18 19 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (106% achievement): CONAGUA has developed an additional 19 aquifer Comments management plans. These plans, which are developed with the participation of users (incl. % and other stakeholders, focus primarily on aquifers that are being overexploited or achievement) those that are approaching that stage. Indicator 6 River Basin Organizations (RBOs) are implementing 13 water programs. Value quantitative or 0 No 13 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (100% achievement): Water resources management plans were Comments developed by the RBOs and the Mexican Institute of Water Technology (IMTA). These (incl. % plans have already been published and are to be implemented under the 2013 budget. achievement) RBOs will be responsible for their implementation, as well as the various programs that they include. River Basin Councils (RBCs) are overseeing the execution of water resources Indicator 7 management plans. Value 21 quantitative or 0 26 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Not achieved (81% achievement): RBCs are advisory bodies with representation from key stakeholders in the sector, including state and municipal governments, water Comments users, civil society and non-governmental organizations. There are a total of 21 (incl. % functioning RBCs, which meet at least once a year and are responsible for overseeing achievement) the implementation of water resources management plans. The remaining five RBCs are expected to be fully operational and overseeing their corresponding plans in 2013. Number of women, youth, and indigenous and elderly peoples with different abilities Indicator 8 has increased through their inclusion in the Mexican Committee for Sustainable Use of Water. Value 3 5 5 quantitative or Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Comments Achieved (100% achievement): Since 2009, diverse population groups are being (incl. % represented in the Mexican Committee for Sustainable Water Use. achievement) CONAGUA has published and is implementing regulations on use of water in priority Indicator 9 basins. Value quantitative or 0 4 0 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (0% achievement): While the technical aspects of new regulations on the use of water in priority basins have been formulated, the legal aspects are still under Comments review. Thus, the regulations have not yet been adopted and are not being (incl. % implemented. Multiple layers of legal review at CONAGUA, SEMARNAT and the achievement) Presidency levels without clear and consistent criteria has proved to be a serious bottleneck in the adoption of new regulation. Indicator 10 CONAGUA has formulated regulations on water use in priority aquifers. Value quantitative or 0 10 10 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (100% achievement): While new water use regulations have been Comments prepared for ten priority aquifers, none of these have yet been adopted due to (incl. % substantial delays in the review of legal aspects. These delays take a severe toll on achievement) the health of these already vulnerable aquifers, as in the meantime new wells continue to be drilled and tons of water is being extracted. Indicator 11 Water availability information for 718 rivers basins has been published. Value quantitative or 91 718 722 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (101% achievement): Water availability data has been published for 627 Comments river basins, increasing the number from 91 to 718 river basins. The publication of (incl. % water availability has a significant impact on water management, as it is a key input in achievement) the decision to grant new concessions as well as the need to impose tighter regulations. Water banks are performing their role by facilitating the exchange of water rights and Indicator 12 increasing transparency A total of 13 water Value banks have been quantitative or 0 No target established, as well Qualitative) as 20 support offices. Date achieved 12/31/2007 12/31/2012 12/31/2012 No target was defined: Water banks are now operational in the main13 river basins as well as CONAGUA’s 20 local offices, effectively covering the country’s entire Comments territory. By providing users with upfront advice on the technical, legal, and (incl. % administrative feasibility of transferring specific water rights, water banks are achievement) facilitating the process for users and enhancing transparency. This is denoted by the high levels of satisfaction reported by users. Policy Area 2 – Mainstreaming adaptation to climate change in water programs. Indicator 13 Water availability information for 653 aquifers has been published. Value quantitative or 202 653 653 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Comments Achieved (100% achievement): Water availability has been published for another (incl. % 451 aquifers, increasing the number from 202 to 653 aquifers. The publication of water achievement) availability has a significant impact on water management, as it is a key input in the decision to grant new concessions as well as the need to impose tighter regulations on individual aquifers. Indicator 14 Reach a volume of 60 percent of treated waste water. Value quantitative or 36.1 60 47.5 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Not Achieved (79% achievement): The treatment plants that are currently operational have an estimated capacity of 97.6 m3/second—equivalent to 47.5 Comments percent of collected waste water. Once the plants that are now under construction, (incl. % including the largest one in the country (i.e., Atotonilco) are completed in 2013 or early achievement) 2014, the percentage of treated waste water is expected to reach more than 69.8 percent. Indicator 15 Irrigated area with treated waste water in irrigation districts reaches 5,000 hectares. Value quantitative or 0 5,000 7,807 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Achieved (156% achievement): While there were some delays in program Comments implementation as a result of the need to put in place the legal agreements by which (incl. % st users commit to not utilizing 1 quality water for irrigation, the concept was achievement) successfully tested under a pilot program, Indicator 16 Hectares of forest restored Value quantitative or 3,000 13,863.9 26,377.6 Qualitative) Date achieved 12/31/2009 12/31/2012 12/31/2012 Achieved (190% achievement): The successful implementation of CONAFOR’s Comments program resulted in its expansion to nine additional areas. The original target was (incl. % amply exceeded, with 26,377.6 ha of forest cover having been restored. Forest achievement) restoration in the high parts of the basin is particularly beneficial for the water lifecycle. Productivity of irrigation districts has increased 2.8 percent annually to reach 1.66 kg Indicator 17 per m³ Value quantitative or 1.41 1.66 1.86 Qualitative) Date achieved 12/31/2007 12/31/2012 12/31/2012 Comments Achieved (112% achievement): Productivity of irrigation decreased in 2009 and 2011 (incl. % as a result of a freezing in Sinaloa and other climatic events that resulted in lost crops. achievement) It increased once again in 2012 to 1.86 kg/m3 by end-2012. G. Ratings of Project Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 11/28/2010 Satisfactory Satisfactory 0.00 2 05/21/2011 Satisfactory Satisfactory 448.88 3 04/04/2012 Satisfactory Satisfactory 448.88 4 01/02/2013 Moderately Satisfactory Moderately Satisfactory 448.88 H. Restructuring (if any) Board ISR Ratings at Amount Disbursed at Reason for Restructuring Restructuring Approved Restructuring Restructuring & Date(s) PDO Change DO IP (in US$ million) Key Changes Made N.A. I. Disbursement Graph . Disbursement Summary (in US $ Millions) 500 450 400 350 US Millions 300 250 200 150 100 50 0 2010 Q2 1. Program Context, Development Objectives and Design 1.1 Context at Appraisal 1. Mexico’s Adaptation to Climate Change in the Water Sector Program reflected the natural convergence of the actions that the country had taken in the two fields over the past decades. On the climate change arena, Mexico had emerged as a global leader. In 2010, it was the only Non-Annex I country that had issued four communications to the United Nations Framework for Climate Change (UNFCCC).1 As outlined under the Fourth Communication, the country was moving swiftly to prepare mitigation and adaptation policies to tackle the most pressing issues that affect the country’s main economic sectors. The Conference of the Parties 16 (COP 16) held in Mexico at the end of 2010 underscored Mexico’s leadership role and provided an opportunity for the Ministry of Environment and Natural Resources (Secretaría de Medio Ambiente y Recursos Naturales, SEMARNAT) to further its position as a prominent international player in the climate change dialogue. 2. The water sector was also a key priority under Mexico’s over-arching strategy for addressing climate change (Estrategia Nacional de Cambio Climático), particularly with relation to vulnerability and adaptation issues. Likewise, the Special Climate Change Program (Programa Especial de Cambio Climático, PECC) that was launched in 2009 identified low levels of water availability and poor water quality as the main problems hampering sustained growth and development and included adaptation to climate change in the water sector as a key policy area. The water sector was also assigned a top priority within 2007-2012 National Development Plan (Plan Nacional de Desarrollo, PND), which had as its main objective the achievement of sustainable human development. According to it, the reduced availability of water caused by population and economic growth, together with the unsustainable management of this resource, could make water a limiting factor rather than a catalyst for sustainable development. 3. The strategic importance given to water issues is not surprising. An estimated 35 million Mexicans have low access to water in terms of both quantity and quality. One out of six of the country's aquifers are overexploited. More than 50 percent of the groundwater used in the country comes from overexploited aquifers, affecting primarily domestic and industrial use. Between 2002 and 2010, droughts and hurricanes affected more than 30 million people and accounted for damage estimated at more than $456 billion Mexican Pesos, putting budgetary pressures at the federal level.2 4. In line with the streamlined lending approach outlined in the 2008-2013 Country Partnership Strategy for Mexico (CPS, Report No. 42846-MX, March 4, 2008) that focused on supporting the Government of Mexico’s (GOM) programs and policies contained in the PND, this operation was designed to support the GOM's efforts to foster adaptation to climate change in the 1 By 2010, Mexico had issued four national communications to the UNFCCC in 1997, 2001, 2009 and 2010. Together with Argentina, Jordan, Micronesia and Senegal, Mexico was among the first group of Non-Annex I countries to issue national communications. In 2010, it was also the only country to have issued a fourth communication, followed only by Uruguay which had issued three. (http://unfccc.int/national_reports/non-annex_i_natcom/items/2979.php). 2 Addressed by President Peña Nieto on the occasion of World Water Day, May 22, 2013. 1 water sector, contributing to long-term sustainable growth and protecting the most vulnerable populations. 5. The macroeconomic policy framework was adequate for a Development Policy Loan. Fiscal and monetary policies had been well-managed in years preceding the 2008 global financial crisis, resulting in a steady decline in public sector deficits and low, stable inflation rates. The government had carefully managed both its external and domestic borrowing to reduce the possibility of crowding out the private sector and to maintain Mexico’s external stability. As a result, Mexico was well positioned to move into economic recovery and to manage its debt burden. 1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved) 6. The objectives of this operation and corresponding Key Performance Indicators (KPIs) were the following ones: 3 PDO 1. Strengthening the institutional framework and monitoring capacity in integrated water resources management  CONAGUA has established water quality monitoring sites in 13 river basin organizations  CONAGUA is operating piezometric gauges  CONAGUA maintains and operates the hydro climatic stations  CONAGUA has conducted 56,347 radio sounding measurements  CONAGUA has developed 18 plans for aquifers management  River Basin Organizations are implementing 13 water programs  River Basin Councils are overseeing the execution of water resources management plans  Participation of women, youth, indigenous, elderly, people with different abilities has increased through their inclusion in the Mexican Committee for Sustainable Use of Water  CONAGUA has published and is implementing regulations on use of water in priority basins  CONAGUA has formulated regulations on water use in priority aquifers  Water availability information for 718 rivers basins has been published  Water banks are performing their role by facilitating the exchange of water rights and increasing transparency PDO 2. Mainstreaming adaptation to climate change in water programs  Water availability information for 653 aquifers has been published  Reach a volume of 60 percent of treated water  Irrigated area with treated waste water in irrigation districts / units reaches 5,000 hectares  Productivity of irrigation districts has increased 2.8 percent annually to reach 1.66 kg per m³ 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and Reasons/Justification Not Applicable 1.4 Original Policy Areas Supported by the Program (as approved) Policy Area 1 - Strengthening the institutional framework and monitoring capacity in integrated Water Resources Management (IWRM) 3 The wording in the definition of the operation’s PDO varies slightly in the text of the various project documents. The definition adopted for this ICR is the prevalent one and is included in the Loan Agreement (Schedule I, page 6) as well as various sections of the Program Document, including the Description of the Operation section and Policy Matrix in the Program Document (pages 33 and 57, respectively). 2 7. The objective within this policy area was to strengthen institutions, regulations and monitoring capacity to foster an integrated and sustainable management of the country’s water resources. In Mexico, water issues are both complex and of strategic importance, as they intercept a myriad of issues, including economic development, public finance, infrastructure investment, environmental sustainability, climate change, and social justice. As a result, they are approached through a broad integrated framework linking water resources with water use (i.e., water supply and sanitation, irrigation and drainage, energy and the environment) rather than through sector-based investments. In this context, the IWRM model is considered to be a best practice, as it enables the conservation of water through a more efficient allocation of the resource; the resolution of conflicts among competing uses and users; the inclusion of the accounting for the social, economic and environmental value of water; and the increased participation of communities and the private sector in decision-making and financing. The challenges in implementing a IWRM approach are many, as it is built upon principles that represent a substantial departure from the traditional sector approach, including: i) coordinated institutional arrangements that include all levels of government; ii) the participation of communities, users and the private sector in decision-making and implementation of programs and projects; and iii) the decentralization of decision-making and management responsibilities to basin-centered institutions. Policy Area 2 – Mainstreaming adaptation to climate change in water programs 8. The policy objective within this policy area was to mainstream adaptation to climate change by reforming financing mechanisms and normative and regulatory frameworks in the water sector. This mainstreaming was to be done within Mexico’s water policy framework for the period 2007-2012 set forth in the National Water Program (Programa Nacional Hídrico – PNH), which established objectives, strategies and goals for the sustainable use of water while at the same time recognizing its strategic value and fostering environmental protection. The PNH also addressed climate change in the water sector as one of its objectives. In this context, Policy Area 2 focused on the development and adoption of a sectoral normative framework and financial mechanisms supporting adaptation to climate change activities in water resource management; agricultural water management; sustainable use and conservation of water, including waste water treatment and reuse; and efficiency improvements for water utilities. The challenges associated with mainstreaming adaptation to climate change in the water sector in Mexico are many, including ensuring that sustainable planning frameworks incorporate climate change impacts and mitigation as well as adaptation measures. This, in turn, implied a need to strengthen existing federal programs and norms by incorporating a set of financial incentives that explicitly address adaptation in the design and implementation of those programs and norms. 1.5 Revised Policy Areas N/A 2. Key Factors Affecting Implementation and Outcomes 2.1 Program Performance Tranche # 1 Amount Expected Release Date Actual Release Date Release Single Tranche US$450 July 21, 2010 Dec. 16, 2010 Regular 3 Tranche 1 Conditions from Legal Agreement/ Program Document Status Policy Area 1 - Strengthening the institutional framework and monitoring capacity in integrated water resources management 1. Mexico has strengthened its commitment to climate change in the water Met sector by submitting the Fourth Communication to the UNFCCC. 2. CONAGUA has strengthened the institutional framework for IWRM by increasing the responsibility to 18 River Basin Councils to oversee, plan and Met manage projects and programs established in Watershed Management Plans. 3. CONAGUA has strengthened the institutional framework for IWRM by setting up two water banks in order to foster the sustainable management and Met efficient administration of water resources. Policy Area 2 – Mainstreaming adaptation to climate change in water programs 4. CONAGUA has issued two norms to provide regulatory instruments to Met promote the conservation of groundwater resources. 5. CONAGUA has incorporated in the Wastewater Treatment Funding Program criteria promoting the recharge of aquifers and water reuse for conservation Met of groundwater resources. 6. CONAFOR has issued operating rules for the Special Program for the Conservation and Protection of Micro-watersheds in priority areas to promote Met reduction of soil erosion, reforestation and forest protection. 7. CONAGUA has taken measures to strengthen the protection of overexploited aquifers by means of its programs to improve the water productivity of Met irrigation. 2.2 Major Factors Affecting Implementation 9. In addition to a favorable macroeconomic environment, there were several factors that positively affected the operation’s implementation, as described below: 10. Strong government commitment to climate change. As mentioned above, Mexico is one of the global climate change leaders among non-industrialized countries.4 The GoM has been actively pursuing the development of a climate change national strategy over the past two decades, having been making steady progress toward building the necessary institutional and legal scaffolding. This DPL, together with support for the preparation to adaptation plans at the state level, reflected the GoM’s growing demand for adaptation support. 11. Long-standing collaboration between the GoM and the Bank on climate change. The GOM’s commitment to climate change issues has received full Bank support from the mid-1990s onward. At the time of preparation, there was a total of 35 initiatives, either active or in the pipeline, financed by various sources, including IBRD loans, GEF grants, carbon finance emission reductions purchase agreements (ERPAs), and other financial instruments (see Annex 6 for a detailed account of the Bank’s Climate Change Engagement in Mexico). Preceding IBRD operations in other sectors offered useful precedents for the mainstreaming of climate change into sector policies.5 Until this DPL, the emphasis had been mainly on mitigation. 4 Mexico was one of the first non-Annex I countries to submit a national communication in 1997. Presently, it stands as the only one that has issued five communications, followed only by Uruguay with four communications. 5 For example, the Programmatic Environmental Structural Adjustment Loans (SALs) approved in 2002 and 2005 were a landmark in mainstreaming the environmental sustainability principle in sector policies for tourism, energy, forestry, and water, as prioritized by the GoM. The operation design built over this precedent to mainstream climate change into water sector policies. 4 12. The operation built on the operational experience gained and the progress achieved in water resources management and efficiency in Mexico. The Bank has a long history of policy dialogue in Mexico’s water sector, dating back to the early 1970s. The Bank has provided - significant operational support the GoM on water resources management, irrigation and drainage, and water supply and sanitation. This long-term engagement, in turn, resulted in a solid operational relationship with Mexico’s Water Commission (Comisión Nacional del Agua - CONAGUA) and SEMARNAT, the two main players in the water sector at the federal level. 13. Strong knowledge base: The preparation of this DPL also benefited from an extensive set of analytical studies focusing on public expenditure reviews (PERs) as well as climate change and water management in Mexico. It also benefitted from the results of the Bank’s Mid-Cycle Implementation Progress Report of the Water Resources Strategy, which highlighted the efforts to position water at the core of the adaptation and mitigation solution. The operation was also informed by the growing global and regional bibliography on the risks of climate change, its potential environmental and social impacts, water adaptation issues, the economic aspects of adaptation to climate change, and water adaptation issues by, among others, the European Environmental Agency, the Global Water Partnership, the Intergovernmental Panel on Climate Change. UN agencies, the Stern Report, the World Water Council and the World Bank. 14. Focus on current governance frameworks and ongoing adaptation activities. The operation’s main focus was on climate change adaptation (CCA) actions that were already part of the core business of the participating institutions (i.e., SEMARNAT, CONAGUA, and CONAFOR). Although not necessarily perceived as having a CCA focus, these practices, considerations and modalities had been incorporated over the years in response to specific needs of each organization to carry out as best as possible their daily tasks in the face of uncertainty under current climate conditions. This approach was highly effective, as it helped ensure their mainstreaming and helped minimize institutional resistance related to the incorporation of additional tasks and ensured the mainstreaming of the CCA agenda. 15. The COP was a strong motivator. The operation fully capitalized on the window of opportunity that opened as a result of Mexico being the host country for the COP 16 at the end of 2010. The meeting served as a catalyst to raise the importance of CCA issues within CONAGUA and prepare fertile ground for the implementation of this DPL. 16. Non-additionality acted as a disincentive for participating institutions. As it is the case with World Bank lending in Mexico, the financial resources attached to this DPL were a transfer to the Treasury and not to the sector agencies; hence, there were limited incentives for sector agencies to support these instruments. As a result, any requirement associated to a project or program is often perceived as a burden—even if they are part of their routine activities. 17. Robust additional technical support was provided. A Technical Assistance Program (TAP) was put in place to support the implementation of the program supported by this DPL. With a total of roughly US$1 million, this TA program focused on five main strategic areas: a) providing support to CONAGUA’s efforts towards the creation of a long-term planning vision for the sector; b) strengthening the financial system in the water sector; c) promoting water resources management and adaptation to climate change at the Basin level; d) providing support to the modernization of the Meteorological Service; and e) mainstreaming adaptation to Climate Change in the water sector. The TAP not only provided support to buttress policy dialogue on key issues on CCA in the water sector but, in some cases, also served to offset the resistance of administrative units within CONAGUA. With regard to the TA Program, it is important to commend the Bank team, as it required significant effort on its part to identify funding sources— often trust funds—and to carry out their supervision. 5 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization: 18. Monitoring and Evaluation (M&E) Design: Overall, the DPL program benefited from a strong M&E system embedded in the operation’s Policy Matrix, with a robust set of KPIs. In line with the Bank’s approach to closely align its operations with the PND, the KPIs were also those included in the PND and the various other planning instruments that are articulated with the PND, including the National Water Plan, the Fourth Communication to the UNFCCC, and the Special Climate Change Program (Programa Especial de Cambio Climático 2009-2012 - PECC). Building upon existing M&E systems had several advantages, including minimizing additional M&E activities for these agencies and ensuring the KPI periodic reporting as it is mandated by Mexico’s Planning Law (Ley de Planeación, Art. 6). As the indicators in the PND, however, the operation’s KPIs do not distinguish between intermediate outputs and outcomes, which would have been desirable. 19. With respect to individual KPIs, it is worth noting how the specific wording can significantly alter what is being measured. Specifically, there are two KPIs focusing on CONAGUA’s regulatory functions included in the Policy Matrix. While the two of them are aimed at measuring the issuing of water-use regulation (i.e., pertaining priority basins and aquifers, respectively), one of them called for regulations being “published and being implemented,� while the other one called for them being “formulated�. The same level of progress has been made in both cases, as a sound set of regulations has indeed been formulated in each case. However, as discussed in further detail below, due to the convoluted legal review processes that are currently in place, no new regulations have been approved and published in the Official Bulletin (Diario Oficial) and, as a result, they are not being implemented. Because of the wording, however, one of the KPIs is considered as having been achieved, although it has not had any substantive impact. 20. Monitoring and Evaluation (M&E) Implementation: The Bank regularly monitored progress under the DPL through periodic Bank supervision missions. SEMARNAT and CONAGUA conducted effective overall M&E of the actions included in the Policy Matrix as well as the activities being supported under the TA program, collecting data needed from the various units within CONAGUA as well as the other participating agencies. 21. Monitoring and Evaluation (M&E) Utilization: The M&E system, which, as mentioned earlier, is a sub-set of the indicators included in the PND, proved useful as a basic pulse-taking tool to assess progress toward implementation of both the DPL series as well as the Government’s Plan. Moreover, it highlighted CCA actions that were already being performed within the water sector, thus contributing to enhancing their profile and CCA focus. 2.4 Expected Next Phase/Follow-up Operation (if any): Two new IBRD and bilateral operations build upon this DPL as follows: 22. Mexico Forests and Climate Change Project (Loan No. 8120-MX; US$350 million; approved on January 31, 2012): This project builds upon the DPL activities implemented by CONAFOR. It aims to support rural communities in Mexico to sustainably manage their forests, build social organization, and generate additional income from forest products and services including from reducing emissions from deforestation and degradation. 23. Modernization of the National Meteorological Service for Improved Climate Adaptation (Loan No. 8165-MX; US$105.26 million; approved on May 17 2012): This project builds upon the activities conducted under the TAP associated to this DPL. It aims to strengthen the human resources, institutional, and infrastructure capacity of the National Meteorological Service (SMN) to meet the increasing demand for timely and accurate weather and climate information for the purposes of water resources and disaster risk management in the face of climate change and climate variability. 6 24. French Development Agency (Agence Française de Développement - AFD): The AFD is currently preparing an operation to support climate change adaptation in the water sector that builds upon this DPL’s Policy Matrix. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation The objectives of the DPL continue to be highly relevant, particularly in view of: 25. Strategic importance of water in Mexico: As mentioned earlier, the impacts of climate change on this resource are a clear threat. Water has been declared at the highest possible level as a “strategic resource… and issue of national security� (COLMEX, 2003, p. 131). The incoming President has also underscored the strategic importance of water for Mexico’s national security and the country’s continuous economic development. 26. Wide political support for climate change agenda: This is denoted by the approval of Mexico’s Climate Change legislation in 2012, which was passed with overwhelming bi-partisan support.6 27. Continuous support from incoming administration: In a multi-party subscribed in December 2012, incoming authorities have already made explicit their commitment to continue to make climate change one of the country’s priorities and promote the sustainable, rational utilization of water resources using several instruments, including payment mechanisms for environmental services to promote the restoration and conservation of forests and water resources (Pacto por México, 2012).7 In addition, the water agenda to be implemented under the incoming administration emphasizes proactive prevention and early intervention, is fully aligned with the objectives of this DPL, including the institutional strengthening of water institutions and monitoring networks to promote water conservation and reduce water-related vulnerability. In this regard, it is important to highlight the President’s new restrictions on water extraction (“libre alumbramiento�), which point to the administration’s determination to step up water conservation.8 3.2 Achievement of Program Development Objectives 28. The operation has largely achieved its two objectives and, in many cases—on the policy front particularly—actual achievements have amply exceeded original expectations. In this regard, it is important to underscore the progress since the last ISR was filed in November 2012, when the Project’s PDO Achievement and Implementation Progress were rated Moderately Satisfactory due to the preliminary unclear outlook on reported achievement for several targets. Since then, their achievement has been confirmed or exceeded—e.g., area irrigated with treated waste water; productivity of irrigation districts, and area of forests restored. Moreover, the new administration has taken alternative measures—e.g., the suspension of unrestricted drilling of new wells—that ameliorate the negative impact of the current weaknesses in CONAGUA’s regulatory 6 The 2012 Climate Change legislation was passed with a vote of 128 for and 10 against, and was later passed unanimously by the Senate. 7 http://www.scribd.com/doc/115226400/Pacto-Por-Mexico-TODOS-los-acuerdos 8 http://www.radioformula.com.mx/reproductor.asp. 7 functions. The main achievements can be summarized as follows: (see Annex 7 for a detailed description of the operation’s outcomes).9 Policy Area 1 - Integrated Water Resources Management (IWRM) Ranking: Satisfactory 29. This DPL supported CONAGUA’s efforts to further strengthen the integrated and sustainable management of water basins and aquifers, which was an explicit objective of the 2008-2012 PND (i.e., Pillar 2, Objective 16). The operation built upon the IWRM’s operational principles, emphasizing the coordinated development and management of water, land and related resources as a way to maximize the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems. This integrated view was fully reflected in the operation’s Policy Matrix, which included multiple dimensions of water management as well as the multiplicity of relevant stakeholders. As a result, the operation has contributed to breaking silos within CONAGUA’s sub-sectors and sub-divisions, supporting a more integrated and holistic approach toward water management. 30. There was substantial progress toward PDO 1 - Strengthening the IWRM institutional framework and monitoring capacity along four distinctive dimensions: i) GoM’s commitment to CCA in the water sector; ii) monitoring capacity for measuring the impact of climate change on the water cycle; iii) planning and management of water resources at the basin level; and iv) regulatory and administrative capacity of water resources, including transfer of water rights. 31. All but three of the 12 KPIs associated to this PDO have been achieved or exceeded. While two of the three KPIs that were not fully achieved represent minor shortcomings, the third one points to cumbersome and convoluted legal review procedures that hinder CONAGUA’s regulatory effectiveness in promoting water conservation. However, the GoM is taking other measures to overcome this shortcoming, including the recent enactment of a presidential decree suspending the free perforation of new wells in all national aquifers. 32. GOM’s commitment to CCA in the water sector: The GoM has continued to be at the forefront of CCA issues, restating its commitment to foster climate change adaptation in general and in the water sector in particular. This commitment is underscored by the substantial progress being made toward the development of a national CCA strategy, including building the underlying legal and institutional frameworks. Some of the specific outcomes include:  The GoM submitted the Fourth and Fifth National Communications to the UNFCCC. Mexico is the only Non-Annex I country to have submitted five national communications. The latest communication (September 2012) presents the new institutional framework for climate change and mitigation as defined under the newly enacted Climate Change Law.  Enacted in June 2012, the new General Climate Change Law provides a unifying legal framework for the country’s climate change policy and establishes the foundations for an ambitious National Climate Change Policy and the supporting planning, coordination and M&E mechanisms. The law also establishes a Climate Change Fund with the objective of raising funds from public and private entities for the implementation of adaptation plans.  Climate-change focused planning instruments. The federal government produced its National Climate Change Strategy (CCS) in 2007, followed by the PECC in 2009. Fifty out of the PEC’s 294 targets, are directly related to water, mainly in the context of adaptation. In addition, the 2007-2012 PNH was the first one to have a specific objective related to climate change. 9 The outcomes being reported in this ICR reflect those in the 2012 official reports corresponding to the various planning instruments in which they are embedded as well as complementary information collected during the ICR mission and other documents. 8  Sector-level CCA strategic framework. In November 2012, SEMARNAT and INECC presented a CCA Strategic Framework (Adaptación al Cambio Climático en México: Visión, elementos y criterios para la toma de decisions) that establishes the criteria to identify, articulate and direct policy instruments to strengthen adaption capacity of ecosystems, production systems and society in general. The development of this strategic framework, which was one of the goals of the 2009-2012 PECC, lays the foundation for development of the adaptation component of the next National Strategy for Climate Change to be developed in 2013. 33. Strengthening of monitoring capacity: An expanded, more reliable monitoring system for measuring the impact of climate change in the water cycle is now in place. Strengthened monitoring capacity will render more complete, accurate, and timely data on climate and water resources to be used in the development of a sound technical knowledge base on the impacts of climate change on water. Such knowledge base will help strengthen forecasting tools—such as the Climate change Water Vulnerability Atlas that is currently being developed by CONAGUA— to better anticipate and interpret more precisely the future impacts of climate change on the components of the water cycle as well as outline the actions to be carried out to cope with these changes. This constitutes a major achievement, given Mexico’s strong limitations on the availability of data to measure resilience and information systems on water in general. The spin- off operation—i.e., Modernization of the National Meteorological Service for Improved Climate Adaptation Loan—continues to support the strengthening of the observation network for water and climate variables that play a role in climate change adaptation. The importance given by the GoM to the continuous strengthening of monitoring capacity is underscored by a US$70 million contribution in counterpart funds. The main outcomes include:  Increase in the number of water quality monitoring sites from 400 to 5,000 between 2007 and 2012, amply exceeding the 1,500 target.  Increase in the number of operational piezometer gauges from 220 to 370 between 2012, in line with the original target.  CONAGUA continues to support a network of 3,700 hydrometric and climatologic stations, In line with the original target.  A total of 30,264 radio sounding measurements between 2007 and 2012, which represents roughly 54 percent the original target due to the lack of budgetary resources between 2007 and 2010. This problem has now been overcome and radio sounding measurements are being conducted regularly. 34. Planning and management of water resources at the basin level: Basin-centered institutions are playing an increasingly active role in the development of water resources management plans and the implementation of water programs, which is in line with the IWRM guiding principles of decentralized, participatory, multi-sector planning and management of water resources. While basin centered institutions have not yet achieved their full potential, they are all now operational and are gradually fulfilling their assigned roles. The main outcomes include:  CONAGUA has transferred some of its functions and responsibilities to river basin organizations (RBOs, organismos de cuenca). The RBOs are specialized units of CONAGUA with technical and administrative autonomy to exercise the functions assigned to them by law, including participation in the formulation of regional policy and programs, the definition of water user fees and their collection.  A total of 26 River Basin Councils (RBCs) have been established with representation from key stakeholders in the sector, including state and municipal governments, water users, civil society and non-governmental organizations.  Water resources management plans have been developed in a participatory manner in each of the 13 hydrological administrative regions. As envisioned, the RBOs are responsible for their implementation. Twenty-one RBCs (out of the original target of 26 RBCs) are overseeing the implementation of water programs included under these plans. 9  An additional 19 aquifer management plans have been developed with the participation of users and other stakeholders, slightly over the 18 that were originally envisioned. They focus primarily on aquifers that are being overexploited or those that are approaching that stage.  Participation of women, youth, and elderly and indigenous populations has increased through their inclusion in the Mexican Committee for Sustainable Use of Water since 2009. 35. Regulatory and administrative capacity of water resources: CONAGUA has continued to strengthen the institutional framework to further enhance transparency and effectiveness in the management of water resources. Water banks are now operational in the country’s entire territory, providing users upfront advice on the technical, legal, and administrative feasibility of transferring specific water rights. Likewise, the publication of water availability for river basins has been expanded substantially, providing a key input in enhancing the administration of water resources, including decision on whether to grant new concessions as well as the need to impose tighter regulations. Unfortunately, cumbersome and slow legal review procedures that are partly outside the CONAGUA’s orbit hamper the agency’s regulatory functions regarding water conservation. While this is clearly a shortcoming that needs to be addressed in the medium term, a recently enacted presidential decree imposed more stringent controls on underground water utilization. The main outcomes include:  Thirteen water banks and twenty support offices have been established, serving Mexico’s entire territory. Rather than being conceived as a trading floor for water rights, the water banks are primarily aimed at enhancing the overall transparency of the transfer of water rights, facilitating the process for users and fostering rational decision making on their part. Their effectiveness is denoted by the high levels of satisfaction reported by users.10 There is no indication that processing times have improved significantly, as parts of the administrative process of water rights transfer is outside the orbit of the water banks.  Water availability has been published for 627 river basins, increasing the number from 91 to 722 river basins. In addition, CONAGUA has also identified areas to be designated as reserves in the medium and long term, laying the technical foundations necessary to regulate the use of superficial water.  New regulations have been formulated on the use of water in priority basins and aquifers. However, the legal aspects are still under review and, thus, the regulations have not been enacted. Specifically, four new regulations have been formulated on the use of water of priority basins, with progress toward their official publication and enactment being estimated at 82 percent. Likewise, ten new regulations have been formulated on the use of water in priority aquifers, with progress toward their official publication and enactment being estimated at 91 percent. However, multiple layers of legal review at CONAGUA, SEMARNAT and the Presidency levels and the lack of clear and consistent criteria has proved to be a serious bottleneck in the enactment of these regulations. This is particularly serious in the context of priority basins and aquifers that are already highly vulnerable and susceptible to the overuse that continues to take place during the protracted review period. This is one of the reasons leading to the preparation of a new water law, which is currently being formulated.  Despite this weakness, the GoM has taken other actions to strengthen underground water conservation, including the signing of a Presidential Decree in May 2013 requiring CONAGUA’s permission for any new well perforation. The impact of this measure is substantial; before the new restriction was put in place, only 55 percent of the national territory required permission from CONAGUA to extract groundwater, while the remaining 10 Customers report over 99 percent satisfaction in the surveys that were conducted among 5,000 users in 2011, with 86.43% percent characterizing the services provided by the water banks as excellent and 12.2 percent as “good� (CONAGUA’s Compendio Estadístico de Administración del Agua 2012, p. 26). 10 45 percent was allowed to extract water at any time and quantity in non-priority aquifers (ibre alumbramiento). Under the new Presidential Decree, any water extraction requires CONAGUA’s permission. Policy Area 2 – Mainstreaming adaptation to climate change in water programs Ranking: Satisfactory 36. This DPL supported CONAGUA’s efforts to mainstream adaptation to climate change in water programs, which was consistent with the PNH’s new focus on climate change in the water sector (i.e., Objective No. 7). Specifically, this policy area focused on the development and adoption of a water sector normative framework and financial mechanisms supporting adaptation to climate change activities with a specific focus on: i) aquifer recharge; ii) climate change adaptation practices in treatment plants; iii) forest restoration; and iv) irrigation efficiency. This mainstreaming has been mainly the result of identifying current practices and programs within the institution that pertain not just to water management but also climate change adaptation. By bringing together these previously disjointed and often obscure programs and regulations under the climate change thematic umbrella, this operation also contributed toward enhancing the importance of climate change issues in water programs and the adoption of a more integrated view toward adaptation to climate change within both CONAGUA and CONAFOR. 37. Significant progress has been made toward PDO 2 - Mainstreaming climate change adaptation into CONAGUA’s operations. All but one of the KPIs associated to this PDO have been achieved or exceeded. The remaining target (i.e., volume of waste water treated) is expected to be achieved once the treatment plants that are now under construction are completed in 2013 or early 2014 (see Datasheet). 38. Aquifer recharge: There has been sustained progress to promote artificial aquifer recharge to mitigate the effects of overexploitation. The main outcomes include:  New regulations have been issued to promote the conservation of groundwater resources, including requirements for the recharge of aquifers with treated water and artificial recharge from rainwater and drainage in projects with a flow of at least 60 liters/second.  CONAGUA now publishes water availability for all the aquifers in the country. Between 1997 and 2012, CONAGUA more than tripled the number of aquifers with published information on water availability, from 202 to 653 aquifers. The publication of water availability of aquifers has a significant impact on water management, as it is a key input in the decision to grant new concessions as well as the need to impose tighter regulations on individual aquifers.  A pilot program has been successfully implemented to promote the utilization of treated water in irrigation. Although it proved more time-consuming than anticipated due to the need to subscribe legal agreements with users who agree not to use first-quality water for irrigation, the concept has been successfully tested. There are now 7,807 hectares being irrigated only with treated water, exceeding the original goal of 5,000 hectares. 39. CCA-conducive financial incentives for treatment plants: CONAGUA has incorporated in its Wastewater Treatment Program (Programa de Tratamiento de Aguas Residuales - PROTAR) criteria promoting the recharge of aquifers and water reuse for the conservation of groundwater resources. The program, which provides funding to water providers for the expansion, construction or rehabilitation of treatment plans, provides financial incentives to those projects that favor climate change adaptation actions, such as the reuse of treated effluent—i.e., the higher the percentage of waste water reused, the higher the amount of funding. Operation and maintenance costs are partly funded through transfers based on volume of waste water treated to pre-defined quality standards. The main outcomes include:  The volume of treated water increased from 38.3 to 47.5 percent of collected waste water between 2007 and 2012. 11  The anticipated 60 percent target is expected to be achieved and exceeded in 2013 or early 2014, once the various treatment plants that are currently in the pipeline are completed. One of them is the Atotonilco treatment plant, which is the largest in the country with a 23 m3/second planned capacity. While there have been delays in construction, it currently presents 54 percent of progress and is expected to be completed in 2013 or early 2014. This treatment plant will benefit from the financial incentives for operation and maintenance. 40. Forest restoration: CONAFOR has issued operating rules for the Special Program for the Conservation and Protection of Micro-Watersheds (SPRMPA) in priority areas to promote the reduction of soil erosion, reforestation, and forest protection. SPRMPA promotes soil conservation and reforestation activities in degraded areas as a means to mitigate the effects of climate change. The program has several notable elements, including an emphasis on the conservation of micro-watersheds that is critical for water resource management and an innovative payment mechanism to offset the opportunity costs associated with forgoing forest conversion. The main outcomes include:  In its preliminary phase, the program focused on the Cutzamala watershed, and was later expanded to nine additional areas. Degraded areas of micro-watersheds in priority areas and forest cover are being restored under the program. Specifically, the area of restored forests has increased significantly, from 3,000 to 23,704 hectares between 2009 and 2012, amply exceeding the original target of 13,000 hectares.  Moreover, CONAFOR reports that the pilot experience financed under this operation had several institutional impacts, including strengthening the importance given to water resources in the context of the program, and successfully testing the principle of integrated interventions, which was subsequently extended to other programs.  A US$350 million IBRD operation (i.e., the Forests and Climate Change Project; approved in January 2013) continues to provide support to this action. 41. Irrigation: CONAGUA has strengthened the protection of overexploited aquifers by means of its programs to improve the water productivity of irrigation. The agricultural sector is the main user of water, consuming approximately 77 percent of water resources. As a result, effective water policy must include measures to reduce the demand for water in agriculture, improve the efficiency of irrigation systems, and increase the adoption of water-saving technologies. The main outcomes include:  The operating rules of the Program for Modernization and Technology Upgrade of Irrigation Units (PMTUR) incorporated new criteria prioritizing activities that improve the sustainability of the resource. As a result, and despite a decrease in 2011 due to the freezing in the State of Sinaloa, the productivity of irrigation districts has increased from 1.41 to 1.86 kg per m3 between 2007 and 2012, compared to the original target of 1.66 kg per m³. 42. Other outcomes:  CONAGUA was responsible for the implementation of 41 of the 50 water-related targets included under the 2009-2012 PECC, while the remaining nine are implemented jointly with other institutions. As of July 2012, CONAGUA was among the agencies with the highest achievement of PECC targets, with 88 percent for climate change targets as a whole and 98 percent for those focusing on adaptation.  All CONAGUA technical staff is required to take training on climate change in the water sector, with a duration of eight hours and 30-question final evaluation. Up to now, 2,861 CONAGUA technical staff members have taken the course, which is a requirement of CONAGUA’s administrative service career.  CCA is being given increasing importance in the context of water resources, as denoted by its prominence in recent CONAGUA’s publications, including a two-part series in Reportes Económicos in 2011 and an article in the Gaceta del Agua 2012. 12 3.3 Justification of Overall Outcome Rating Rating: Satisfactory 43. The policies supported under this DPL continue to be highly relevant for the GOM, as they are placed at the intercept of two long-term national strategies focusing on climate change readiness and the sustainable management of water resources. The GoM has continued to demonstrate strong commitment to a broad policy program on climate change and water adaptation. Overall, there have been important advances highlighting the growing centrality of climate change adaptation issues in Mexico at all government levels. These advances include a new Climate Change Law, a new national adaptation strategy, and the Fifth Communication to the UNFCCC, which makes Mexico the Non-Annex I country with most national communications. 44. The operation has also been highly effective, as denoted by the substantial PDO achievement. As envisioned under Policy Area 1, CONAGUA has continued to strengthen IWRM monitoring capacity and the institutional framework. A more precise and reliable monitoring network is now in place to measure the impact of climate change in the water cycle. In addition, basin-centered institutions are playing an increasingly active role in the planning and management of water resources. Finally, water banks are now operational throughout the country, facilitating and enhancing the transparency of the transfer of water rights. While protracted legal review procedures of new regulation remain an obstacle for the enhancement of overall CONAGUA’s effectiveness and the strengthening of the IWRM framework, the GoM is taking alternative measures to step up water conservation. Likewise, substantial progress has also been made under Policy Area 2, with CONAGUA having made great strides toward mainstreaming climate change adaptation into its current operations by developing and adopting a water sector normative framework and financial mechanisms that are conducive to CCA activities in water resource management, agricultural water management, sustainable use and conservation of water. Notable achievements have also taken place in micro-watershed and forest cover restoration programs under CONAFOR’s orbit, contributing toward an enhanced awareness of the importance of water management issues in the context of adaptation to climate change at the agency level. 45. In addition, through its support to CONAGUA’s active participation in international forums, the operation has made a substantial contribution toward raising the importance of water issues in the climate change global agenda and contributed toward South-South learning and knowledge sharing initiatives. In this regard, as well as for the operation’s PDO achievement in general, it is important to underscore the significant contribution made by the Technical Assistance Program that was implemented under this operation. It provided needed technical and financial resources for participating agencies, which also provided valuable incentives to these agencies in the context of Mexico’s non-additionality policy. 46. The policy supported under this operation can be expected to have utmost economic efficiency given the strategic value of water resources in Mexico, not just for agriculture, tourism and economic production in general but also to ensure adequate access to water for its population, the poor in particular. 3.4 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 47. In Mexico as elsewhere, climate change may push the poor beyond their ability to cope, particularly as a result of their lack of access to water resources. This operation can be expected to have a significant positive impact on the country’s poor and vulnerable communities. Broadly speaking, poor farmers located in the semi-arid and arid central and northern parts of the country will benefit more from measures aimed at improving water availability through watershed management, aquifer recharge, and water efficiency and savings. Measures aimed at improving water quality are likely to produce larger benefits for the poor living in the southern states, where 13 the largest infrastructure gaps remain, those living in slums that lack piped water or sanitation; and those living in areas at risk of extreme weather events, such as coastal areas, unstable slopes, and flood plains. (b) Institutional Change/Strengthening 48. As described above, this operation had a significant institutional impact, including the approval of a new Climate Change Law, greater focus on climate change in the framework of planning instruments and programs at the federal level, and CONAGUA’s institutional strengthening with a dual focus on IWRM and adaptation in the water sector. In addition, the operation had a substantial impact in institutional strengthening in the areas supported under the TAP. All TAP activities envisioned at appraisal were implemented successfully and particularly notable were the achievements in the strengthening of the SMN and the advancement of water issues in the global climate change agenda. The only exception was the implementation of a pilot experience in water resources management and adaptation to climate change at the Yaqui basin, for which several technical studies were conducted but were not fully implemented due to longer than expected time required for the processing of fund transfers to the local implementation agency.11 Specifically:  CONAGUA’s long-term planning vision. Advisory services were provided under this operation throughout the process of the formulation of Vision 2030 for CONAGUA, a long- term vision for the future of water resources in Mexico. The final product will be the National Water Resources Climate Change Adaptation Strategy, which is currently under preparation.  Financial System in the Water Sector. The World Bank team, together with CONAGUA and the Ministry of Finance organized a stakeholder conference to build consensus over the main parameters of water financing system, including its definition, scope, and the identification of a set of new financing schemes for the long-term funding of hydro- agricultural projects as well as a Water Emergency Fund to be made available in the case of disasters caused by extreme hydro-meteorological events. This TAP also supported the preparation of the Water Financial System (Sistema Financiero del Agua – SFA), which is now being published.  National Program for the Modernization of the Meteorological Service. Advisory services were provided to the National Meteorological Service, including technical workshops for capacity building. These activities, in turn, resulted in the preparation of a new IBRD-financed SIL that supports the modernization of the NMS.  Mainstreaming Adaptation to Climate Change in the Water Sector at the Global Level. Advisory services under this operation also focused on supporting CONAGUA’s participation in the COP 16 meeting, which was held in Cancun at the end of 2010. With the Bank’s support, CONAGUA seized the opportunity to present its contributions to climate change in the water sector and take on a global leadership role. During the COP 16, CONAGUA became an active participant in two international bodies focusing on climate change in relation to water issues: the Water and Climate Coalition (WCC), which has as its objective to incorporate water into the formal deliberations under the UNFCCC, and the Alliance for Global Water Adaptation (AGWA), which focuses on adaptation practices. As a result of CONAGUA’s continuous engagement and follow-up efforts, water was incorporated into the UNFCCC’s Nairobi Work Programme, In addition, Mexico hosted the first UNFCCC meeting on water and climate change in July 2012, for which the UNFCCC Secretariat prepared an official technical paper on the issue (UNFCCC, 2011). CONAGUA’s continuous engagement in the global climate change dialogue has helped raise the importance being given to water issues in the climate change adaptation agenda. 11 The activities will receive support under the spin-off operation (Loan No. 8165-MX). 14 (c) Other Unintended Outcomes and Impacts (positive or negative, if any) 49. An important value-added of this operation was to provide the opportunity for continuous policy dialogue, both among various public and non-public stakeholders within Mexico’s water community as well as with the Bank, to underscore the importance of the actions being taken, to bring special attention to the M&E of sector activities with an IWRM focus, and to help ensure their continuous political and institutional support. 50. Mexico has emerged as a regional leader in CCA issues. Other Central American countries are benefiting from Mexico’s stronger capacity to adapt to climate change in the water sector, including better monitoring, modeling, and understanding the hazards, levels of exposure, vulnerabilities, risks and how to manage them. 3.5 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops Not Applicable 4. Assessment of Risk to Development Outcome Rating: Moderate 51. Strengthening the institutional framework and monitoring in IWRM – Moderate risk. The progress being achieved toward developing an integrated, multi-sector, decentralized and participatory institutional framework for the sustainable management of water resources is inserted within the GOM’s medium- and long-term sector strategy. Sub-national- and basin- centered water entities are playing an increasingly important role in the definition of water programs and their implementation. In addition, the spin-off IBRD operation focusing on the modernization of the National Meteorological Service will ensure the continuous strengthening of monitoring systems for both enhanced IWRM and Climate Adaptation in the water sector. 52. However, as pointed out by recent water sector studies, there are still long-standing reform issues that need to be tackled, including enhancing CONAGUA’s regulatory and enforcement functions, as well as ensuring that the entire set of financial incentives and subsidies under federal programs, including water pricing in general, is fully conducive to the rational and efficient use of water resources. 12 The budgetary cycle also makes it difficult to invest in multi- year activities; hence, it is a major impediment to longer term planning. Financial sustainability also remains a challenge, including ensuring the allocation of sufficient budgetary resources to CONAGUA. Finally, deeply engrained cultural issues related to water rights and energy subsidies pose structural threats to water management and conservation, which have been identified as areas in need of reform under the overall cooperation strategy between the Bank and the GoM. 53. Mainstreaming Adaptation to Climate Change in Water Program – Negligible to low risk. Achievements toward mainstreaming adaptation in sector policies, including water, is just one more step in the longstanding path that Mexico has taken to responsibly address climate change issues, dating back to the mid-1990s. For future steps, the GoM has adopted the phased approach proposed under the Adaptation Policy Framework to Climate Change (UNDP 2005). This phased approach is reflected in the PECC, which establishes three main stages in the development and implementation of the Adaptation Program. The first stage (2008–2012) includes an evaluation of the country’s vulnerability and an economic assessment of the priority measures. The development of the first comprehensive national adaptation proposal is in line with the objectives of this operation. The second stage (2013–2030) comprises the strengthening of national, regional, and sector adaptation strategic capabilities. The policies supported under this 12 See, for example, World Bank (2013), Agua urbana en el Valle de México:Un camino verde para mañana?, March 2013, Washington, D.C. 15 Adaptation to Climate Change DPL in the water sector coincide with various objectives of the second stage, such as strengthening and reformulating public adaptation policies related to sustainability and introducing sustainability criteria in water sector programs. The third stage (2031–2050) will consolidate the acquired capabilities in each sector. The newly enacted Law on Climate Change will help ensure the sustainability of this strategy over the medium and long terms. 54. Mainstreaming Water Issues in the Global Climate Change Agenda - Moderate risk. As mentioned earlier, as a result of CONAGUA’s active participation in global climate change forums, water was included under the Nairobi Works Programme. While this is a significant achievement, continuous efforts will be needed to insure that this opportunity comes to full fruition and water issues become a permanent focal point in the climate change agenda. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory 55. The performance of the Bank in assisting the Borrower to identify, prepare and appraise the operation is deemed satisfactory. The Bank team effectively built upon the experience gained by the GoM through implementation of the water sector program as well as exemplary climate change programs and activities, including a comprehensive National Climate Change Strategy and the related PECC. In addition, the team did a thorough review of relevant lessons learned in other operations, both in Mexico and elsewhere as well as August 2009 Development Policy Lending Retrospective. These lessons served to inform the operation’s design and ensure its successful implementation. The operation’s design benefited from Mexican as well as international experience. The operation supported the ambitious goals for adaptation to climate change in the water sector that had been set forth In the PND, PNH, PNI and PECC. The Bank team responsible for preparation was highly dedicated and benefited from an intimate knowledge of the country’s water sector and its priorities. It worked closely with SEMARNAT and CONAGUA to identify a set of key steps needed to further strengthen IWRM and mainstream the adaptation to climate change into the water sector. (b) Quality of Supervision Rating: Satisfactory 56. The project was well supervised, with regular field missions and supervision reports focusing not just on the implementation of the DPL but also the TAP. Sector and CMU managers followed project implementation closely. A wide array of sector specialists was included in the supervision missions, contributing valuable expertise and technical assistance. The longstanding relationship between the Bank team and the Borrower was an added benefit. 57. The TAP provided substantial value added to the operation in areas that presented opportunities for high pay-offs. It also provided additional incentives for the participating administrative units within CONAGUA to be more closely involved in the operation. It is worth noting that the funding for the TAP (roughly US$1 million) was not automatically assigned but was the result of significant efforts on the part of the team to identify sources of funding—mainly IBRD-administered trust funds—that required additional supervision. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory 58. Overall, the Bank’s performance is considered satisfactory. The Bank team provided external validation, strong and consistent supervision, adequate financial resources, strong management support as well as a valuable mix of technical skills and assistance to support the 16 GOM’s own agenda. The Bank’s involvement provided added international exposure to CONAGUA in the global climate change dialogue. 5.2 Borrower Performance (a) Government Performance Rating: Satisfactory 59. As mentioned earlier, the actions supported under this operation were part of the GOM’s own agenda with respect to both climate change adaptation and the water sector. Thus, the operation had a remarkable level of support. In addition to the political support, Mexico has the institutional and technical tools characteristic of a sophisticated middle-income country, which makes it a highly effective partner. (b) Implementing Agency or Agencies Performance Rating: Satisfactory 60. Inter-sector coordination was an important determinant of the operation’s success. SEMARNAT played a key leadership role as the ministry responsible for overseeing the PECC’s implementation and for preparing Mexico’s Communications to UNFCCC, which, in turn, defined the climate change adaptation agenda. It also provided effective coordination of the activities carried out by CONAGUA and CONAFOR, which, although under SEMARNAT’s overall policy direction, enjoy a significant level of autonomy. CONAGUA, as well as its administrative units, also fulfilled their responsibilities under the operation, even though they often represented an added responsibility to their routine activities. The same applies to CONAFOR. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory 61. Overall, the Borrowers’ performance is deemed satisfactory for the reasons stated above. 6. Lessons Learned (a) Lessons of wide general application 62. The operation’s policy content and prior actions should reflect the Borrower’s own program and priorities developed with the benefit of a national policymaking process that involves broad public consultation. The Borrower’s ownership and stakeholder support for the program were critical to its successful implementation. This DPL was fully inserted within Mexico’s PECC, which in turn, supports key components of the PND, which was widely consulted in accordance with participatory processes mandated by Mexican law. At the sector level, the DPL was inserted within the PNH, which defines the water policy framework for Mexico and provided the framework for this operation’s policy content. 63. Sustained engagement on the part of the Bank is critical to effectively support reform processes over the medium and long term. The Bank program of climate change in Mexico constitutes an outstanding example of engagement with a sophisticated middle-income country in which the Bank has deployed the full range of available instruments, including investment lending, Development Policy Loans as well as CTF concessional financing, GEF and other grants. The Bank’s support program has also included credit enhancement, hedging swaps, catastrophe risk management and advisory services to support the evolution of the government’s climate program through the years in a consistent manner. A similar long-term approach has been taken in the water sector, relying on a range of Bank instruments to build synergy and deliver knowledge services combined with lending services. In this context, the Bank’s added value to this DPL should be considered as one additional step in the extensive collaborative lending and non-lending engagement with the government on water sector and climate change issues. 17 64. Prior actions should be limited to a few key policy and institutional reforms. Without such a focus, implementation by the Borrower and supervision by the Bank risk losing sight of the operation’s priorities. This operation had seven prior actions distributed between the two main policy areas. These actions proved to be essential and sufficient to achieving the program’s outcomes. 65. The operation’s outcomes should also reflect the Borrower’s program objectives and monitoring capacity and, like the prior actions, should be limited to a few key, measurable indicators. The operation’s outcomes that were included in the Policy Matrix represented the government’s own objectives, as specified in the PNH, the PEEC, and the Fourth Communication to the UNFCCC. As such, they were part of the system of indicators that the Borrower had already identified as part of the planning instruments developed for the sexenio. This had several advantages, including having predefined operational definitions, baselines, and targets for each of the indicators, as well as a regular and predetermined frequency of measurements. This approach also avoids creating additional M&E burden on the Borrower and reinforces ownership. These advantages greatly overshadow the potential downsize of having a more limited choice of indicators. 66. The strategy of focusing primarily on achieving a paradigm shift within the flagship water agency proved highly effective to mainstream climate change adaptation into the water sector. At the operational level, the operation focused largely on adaptation activities that were already a part of CONAGUA’s routine operations but had not been explicitly identified as such. This approach had several advantages, including minimizing institutional resistance and ensuring their automatic mainstreaming. Together with mandatory training for all technical staff, this approach proved very effective in helping incorporate adaptation issues into CONAGUA’s institutional mindset. (a) Project-specific lessons 67. The COP 16 forum provided a strong motivation for CONAGUA to enhance its engagement in climate change activities. The operation capitalized on this unique window of opportunity that had heightened CONAGUA’s interest on climate change, providing a conducive environment for the mainstreaming of climate change adaptation into the agency’s regular programs and operations. 68. The COP 16 also proved to be a strategic venue for advancing the importance given to water issues within the climate change global agenda. With the added validation of Bank support, CONAGUA was effective in bringing water issues into the spotlight during the COP 16 and creating momentum to strengthen cooperation with the water community in the region and to increase the importance being given to water by the global climate change community. 69. The institutional weaknesses that limit CONAGUA’s effectiveness in managing water resources also limit its effectiveness in managing the climate change adaptation agenda. This is clearly illustrated by the protracted legal review procedures, which limit the impact of its regulatory functions. Other institutional limitations include weak enforcement as well as some subsidies and a pricing structure for water that act as a disincentive for both effective and rational use of water resources and the implementation adaptation practices. 70. The TAP proved very valuable not just because of its intrinsic value but also the additional incentives it brought to CONAGUA’s administrative units. These incentives were particularly importance given the non-additionality of IBRD financing in Mexico, as participating agencies do not receive any additional financial resources. 71. The Bank should reassess the funding policies regarding TAPs attached to DPLs. In the past, when the TAPs were approved, financial resources were also secured. This TAP had no resources attached to it and that created considerable pressures on the team to find funding 18 sources. In middle-income countries this is a tremendous challenge, as most Donors do not consider them priority countries in their respective development aid. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/Implementing agencies See Annex 4. (b) Cofinanciers Not Applicable (c) Other partners and stakeholders Not Applicable 19 Annex 1. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Gustavo Saltiel Sector Leader LCSSD Task Team Leader Co-Task Team Alessandra Campanaro Infrastructure Finance Specialist LCSUW Leader Diego Juan Rodríguez Senior Economist ETWWA Economist Todd Crawford Consultant LCSSD Senior Advisor Caroline Van den Berg Lead Water and Sanitation Specialist ETWWA Water and Sanitation Water Resources Javier Zuleta Sr. Water Resources Mgmt. Specialist LCSEN Mgmt. Rodrigo Serrano- Berthet Sr. Social Development Specialist LCSSO Social Development Ricardo Hernández Murillo Sr. Environmental Specialist LCSEN Environment Gisela Campillo Junior Professional Officer LCC1A Water and Sanitation Yerania Sánchez Ramos Junior Professional Associate LCSSD Water and Sanitation Edith Cortés �ngeles Consultant LCSPE Economist Ann Jeanette Glauber Sr. Environmental Specialist LCSEN Environment Jozef Draaisma Sr. Country Economist LCSPE Economist Financial Xiomara Morel Sr Financial Management Specialist LCSFM Management Daniel Nolasco Consultant LCSSD Water and Sanitation Luis Poggi Consultant LCSSD Water and Sanitation Karina Kashiwamoto Language Program Assistant LCC1C Team Assistant David Lopez Viggiano Temporary LCC1C Team Assistant Mariana Montiel Senior Counsel LEGLA Legal Specialist Ana F. Daza Language Program Assistant LCSUW Team Assistant Gloria M. Grandolini Country Director LCC1C Senior Advisor Laura Tuck Sector Director LCSSD Senior Advisor Guang Zhe Chen Sector Manager LCSUW Senior Advisor Supervision Alessandra Campanaro Sr. Infrastructure Finance Specialist LCSDU Task Team Leader Water Resources Javier Zuleta Sr. Water Resources Mgmt. Specialist LCSEN Mgmt. Rodrigo Serrano Sr. Social Development Specialist LCSSO Social Development Alexandra Panman Junior Professional Associate LCSDU Urban and Water Diego Juan Rodríguez Senior Economist TWIWA Economist Graciela Reyes Retana Junior Professional Associate LCSEN Environment ICR Preparation Cecilia Zanetta Consultant LCSDU Primary Author Alessandra Campanaro Sr. Infrastructure Finance Specialist LCSDU Task Team Leader Water Resources Javier Zuleta Sr. Water Resources Mgmt. Specialist LCSEN Mgmt. Diego Juan Rodríguez Senior Economist TWIWA Economist Enrique Aguilar Consultant LCSDU Water and Sanitation Hector Alexander Serrano Junior Professional Associate LCSEN Water and Sanitation Blanca Lopez Alascio Consultant LCSWS Water and Sanitation Diana Jimenez Cruz Team Assistant LCC1C Team Assistant 20 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage USD Thousands No. of staff weeks (incl. travel and consultant costs) Lending FY10 Total: 65.58 326.87 Supervision/ICR FY11 7.30 53.99 FY12 12.28 107.02 FY13 4.65 28.60 Total: 24.23 189.61 21 Annex 2. Beneficiary Survey Results Not Applicable 22 Annex 3. Stakeholder Workshop Report and Results Not Applicable 23 Annex 4. Summary of Borrower's ICR and/or Comments on Draft ICR Includes original letter in Spanish and translation to English 24 25 2013, Year of Institutional Loyalty and Centennial of the Mexican Army CONAGUA SEMARNAT [National Water Commission] [Ministry of Environment and Natural Resources] General Planning Sub-directorate International Cooperation Management Letter No. B00.060.01-0206 Mexico City, June 24, 2013 Alessandra Campanaro Project Manager and Specialist in Financial Infrastructure World Bank 1818 H St. NW Washington, DC 20433, USA I refer to the framework for adaptation to climate change in the sector development policy loan (DPL), that was financed by the World Bank in the amount of US$450 million through loan 7945-MX, and specifically to the Information Completion and Results Report (ICR) prepared by the Bank on the program’s results. In this regard, as you know, the purpose of this operation was to support the government’s efforts to advance in its strategy to pursue sustainable development in the water sector, strengthening the operations of the institution in this area, building closer institutional ties between CONAGUA- INECC-SEMARNAT, and reinforcing the key role of water in adaptation to climate change. Implementation of the DPL has had positive effects on other areas of the institution, directly influencing the concept and development of other projects with the World Bank, such as the Program for Modernization of the National Meteorological Service for Better Adaptation to Climate Change (MoMet); and a consultancy on the Water Financial System (SFA), which led to the first agreement in CONAGUA on the definition and scope of the SFA. Another relevant result has been the development of the Forests and Climate Change Project that the World Bank negotiated with CONAFOR and led among other things to CONAFOR’s participation in the DPL in the area of forest restoration to protect micro-basins. It is important to note that SEMARNAT’s participation involved climate change policy with respect to adaptation in the water sector, specifically the Special Program for Climate Change and the Fourth Communication to the UNFCC, which assigned equal priority to mitigation and 26 adaptation strategies. It identified a series of norms and programs that incorporated elements of adaptation to climate change, including improvements in efficiency and integrated management of the resource. In addition, since 2009 CONAGUA has had incentives in its federal programs based on concepts of water recycling (conservation) and has given priority to geographical areas with a high level of social marginalization. The program was monitored with a policy matrix that reflected the objectives and goals of the National Water Program (PNH) and the Special Program on Climate Change (PECC), and was the tool for tracking the progress of the policies supported by this operation. An analysis of the compliance with the goals and indicators shows a high level of meeting the goals, averaging generally over 90% (see attached table), so overall CONAGUA is satisfied with the results of the DPL. Nevertheless, I should like to indicate three aspects that we feel should be taken into account in future work with that international financial organ: 1. Evaluate with the Secretariat for Treasury and Public Credit (SHCP) the possibility of considering additional resources linked to external credits. 2. Disseminate the results of these operations so that tangible products are publicized. 3. Propose new financial instruments that are more attractive to the executors. Yours truly, [signature] LRI, Claudia Esther Coria-Bustos Pérez Manager of International Cooperation Cc: Ing. Emiliano Rodríguez Briceño, General Deputy Director of Planning Lic. Griselda Medina Laguna, Deputy Manger for Procurement and Evaluation of External Loan Projects CECPB/GML/NASR 27 Annex 5. Comments of Co-financiers and Other Partners/Stakeholders Not Applicable 28 Annex 6 – Stages of Climate Change Engagement in Mexico by type of services provided   Stages of Climate Change Engagement in Mexico Foundations Early Support Strengthening Consolidation (Before 1999) (1999–2007) (2007–2009] (2010–) Solid Waste Management  Renewable Energy for  Mexico: Waste  Adaptation to Climate Change Pilot Project (P007628) Agriculture Project Management and Carbon Impacts in the Coastal Wetlands in  Urban Transport Project (P060718) Offset Project (P088546) the Gulf of Mexico (P100438) (P007615)  Introduction to Climate-  Climate Change DPL  Urban Transport Transformation Financial Services  Community Forestry friendly Measures in (P110849) Program (P107159) (P007700) Transport (P059161)  Environmental  Green Growth DPL (P115608)  Programmatic Environment Sustainability DPL  Adaptation to CC in the Water DPLs I and II (P079748) (P095510) Sector DPL (P120134)  Sustainable Rural  Low-carbon DPL (P121800) Development (P108766)  Strengthening Social Resilience to  First Multi-peril CAT CC DPL (FY12) bond  Forest and Climate change SIL, and Forest Investment Program (FY12)  Modernization of National Meteorological Service SIL (FY12)  LAC Region Landfill Gas  Carbon Finance  Social Impacts of Climate Change Initiative (P104757) Assistance Program for (P112024) Knowledge Services  Evaluation of Energy Mexico (P104731)  MoU Subnational CC (P105849) Efficiency Initiatives  Low-carbon Study  Othon P. Blanco Sustainable (P099734) (MEDEC) (P108304) Development Strategy (P122021)  Economic Assessment of  Mass Urban Transport-  SEP Adaptation of the Water Sector Policy Interventions in the Federal Program to CC Water Sector (P096999) (P110474)  CC Public Expenditure Review (FY12)  Forest Carbon Partnership Facility (FY11-13)  Consolidation &  Preparation of the CTF  Water sector events in the lead-up to Convening Services Strengthening of the Investment Plan COP16 Mexican Office for  Energy-efficiency conference Greenhouse Gas Mitigation  High-level facilitation activities (P060412) related to COP16  Agriculture and forestry sector events during COP16  South-south collaboration on forestry during COP17 29 Annex 7 - Main Policy Actions Taken and Corresponding Outcomes Policy Area 1. Integrated Water Resources Management (IWRM) PDO 1 - Strengthening the IWRM Institutional Framework and Monitoring Capacity Policy Framework  Mexico has critical and urgent water-related problems including the overexploitation and pollution of surface and groundwater. More than 50 percent of the groundwater used in the country comes from overexploited aquifers, affecting primarily domestic and industrial use. The current situation is not sustainable in the medium and long term, and will be clearly exacerbated by the effects of climate change. If not addressed soon, this issue will become an obstacle to continued economic development and will have serious negative impacts on efforts to reduce poverty (PEEC, 2009).  Mexico’s PNH and the PECC specify the objectives, strategies, policies and goals to recover basins, tributaries and groundwater to address the impacts of climate change in a manner consistent with the strategies and policy guidelines dealing with sustainable development and conservation of water resources contained in the 2007-2012 PND. Their aim is also to modernize water uses and reduce pressure on water resources in the near term, as well as take a long-term conservation perspective.  With its broad integrated framework linking water resources with water use (i.e., water supply and sanitation, irrigation and drainage, energy and the environment), IWRM is considered a best practice in the water sector for attaining sustainable outcomes. The IRRM also offers a sound framework for building the resilience needed to adapt to climate change. The main guiding principles underlying IWRM include: i) a coordinated institutional arrangement that includes federal, state and municipal entities; ii) the participation of communities, users and the private sector in decision-making and in the implementation of programs and projects; and iii) the decentralization of decision-making and management responsibilities to basin- centered institutions.  In this context, this DPL supported the strengthening the IWRM Institutional Framework and Monitoring Capacity, focusing on the following dimensions: a. GOM’s commitment to CCA in the water sector; b. Monitoring capacity for measuring the impact of climate change on the water cycle; c. Planning and management of water resources at the basin level; and d. Regulatory and administrative capacity of water resources, including transfer of water rights. a. GOM’s commitment to climate change adaptation in the water sector Major Actions Taken  Submission of the Fourth Communication to the UNFCCC: The Communication underlined the importance of adaptation in water resources at the national and local levels in order to reduce vulnerability in all areas of people’s lives, including economic activities and natural resources. The Communication also underscored the GOM’s commitment to continue strengthening the technical capacity to analyze and manage meteorological information; develop new tools for decision-making under uncertainty; and promote the participation of civil society in the development and evaluation of strategies and programs for the sector.  Submission of the Fifth Communication to the UNFCCC. It was presented at the 67th General Assembly of the United Nations on September 26, 2012. Mexico is the only Non-Annex I country to have submitted five national communications. This Communication presented the new institutional framework for climate change and mitigation as defined under the newly enacted Climate Change Law. Reflecting the country’s growing maturity in CCA issues, the Communication presented the country’s strategic approach toward adaptation to climate change, focusing on risk and vulnerability management, as well as the need for enhanced climate and hydrological monitoring systems. Main Outcomes  Mexico’s stated commitment to foster climate change adaptation in general and in the water sector in particular is corroborated by the substantial progress being made toward the development of a national CCA strategy, including building the underlying legal and 30 institutional frameworks. Some of the most recent achievements include:  The 2007-2012 PNH was the first one to have a specific objective related to climate change.  The federal government produced its National Climate Change Strategy (CCS) in 2007, followed by the PECC in 2009. The PECC includes 105 objectives and 294 targets that are directly aligned with both the objectives of the 2007-2012 PND as well as the CCS. Of these, 50 targets are directly related to water, mainly in the context of adaptation.  In June 2012 Mexico enacted a new General Climate Change Law that provides a unifying legal framework for the country’s climate change policy. It establishes the competencies of the various levels of government and establishes several new bodies at the federal level, including the National Institute of Ecology and Climate Change (INECC). These newly formed bodies will have the task of developing an integrated mitigation and adaptation national policy, developing an information system of climate change indicators, and elaborating the national inventory of GHG emissions. To achieve these objectives they will collaborate directly with the various line ministries, including SEMARNAT. The law also establishes a Climate Change Fund with the objective of raising funds from public and private entities for the implementation of adaptation plans.  In November 2012, SEMARNAT and INECC presented a CCA Strategic Framework (Adaptación al Cambio Climático en México: Visión, elementos y criterios para la toma de decisions) that establishes the criteria to identify, articulate and direct policy instruments to strengthen adaption capacity of ecosystems, production systems and society in general. The development of this strategic framework, which was one of the goals of the 2009-2012 PECC, lays the foundation for development of the adaptation component of the next National Strategy for Climate Change to be developed in 2013. b. Strengthening of monitoring capacity Key Actions Taken  CONAGUA has increased the number of water quality monitoring sites from 400 to 5,000 between 2007 and 2012, amply exceeding the 1,500 target. The implementation of this expanded water quality monitoring system represents a substantial achievement, as the improvement with respect to the previous system is not only in terms of number of sites, but also their location, as well as the frequency and the parameters being monitored. The rapid expansion of the system, which was implemented over the past year, was achieved utilizing a tertiarization scheme.  CONAGUA increased the number of operational piezometer gauges from 220 to 370 between 2012, in line with the original target. These gauges provide measurements of static pressures for underground water and report data in real time. CONAGUA plans to triplicate the number of piezometer gauges by 2018.  In line with the original target, CONAGUA continues to support a network of 3,700 hydrometric and climatologic stations, of which 900 report data on a daily basis. Of these, 2,100 are directly operated by CONAGUA and 1,600 are operated by third parties that have subscribed institutional agreements with CONAGUA.  CONAGUA has conducted a total of 30,264 radio sounding measurements between 2007 and 2012. This represents roughly 54 percent the original target of 56.347 measurements, which was not achieved due to lack of budgetary resources between 2007 and 2010 and cumbersome procurement and distribution procedures for the needed supplies. These problems have now been overcome. Main Outcomes  An expanded, more robust monitoring system for measuring the impact of climate change in the water cycle is now in place. This, in turn, is a pre-condition for the effective incorporation of climate change adaptation into IWRM planning efforts. Strengthened monitoring capacity will render more complete, accurate, and timely data on climate and water resources to be used in the development of a sound technical knowledge base on the impacts of climate change on water. Such knowledge base will help develop tools—such as the Climate change Water Vulnerability Atlas—to better foresee and interpret more precisely the future impacts of 31 climate change on the components of the water cycle as well as outline the actions to be carried out to cope with these changes.  A US$105 million IBRD operation (i.e., the Modernization of the National Meteorological Service for Improved Climate Adaptation; approved in May 2012) continues to support the strengthening of the observation network for water and climate variables that play a role in climate change adaptation. The importance given by the GoM to this operation and its objectives is underscored by a US$70 million contribution in counterpart funds. c. Planning and management of water resources at the basin level Key Actions Taken  CONAGUA has transferred some of its functions and responsibilities to river basin organizations (RBOs, organismos de cuenca). The RBOs are conceived as specialized units of CONAGUA with technical and administrative autonomy to exercise the functions assigned to them by law. They are responsible for formulating regional policy, designing programs to implement those policies, conducting studies to estimate the value of the resources generated within their boundaries (water user fees), recommending specific rates for water user fees as a result of those studies, and finally, operating the necessary mechanisms for collecting water user fees.  Water resources management plans have been developed in a participatory manner in each of the hydrological administrative regions. The RBOs are responsible for their implementation under the 2013 budget. They are consistent with planning instruments for the water sector developed at the federal level.  River basin councils (RBCs) represent key stakeholders in the sector, including the state and municipal levels, water users, civil society and non-governmental organizations (NGOs). The RBCs serve mainly as advisory councils, giving their members a voice on key issues. They can also help to resolve conflicts by developing consensus among various parties involved and recommending actions to CONAGUA. There are a total of 26 functioning RBCs. They meet at least once a year and, among their other functions, they are overseeing the implementation of projects and programs under the water resources management plans. Fostering the more active participation of RBCs is still a challenge. While the degree of participation varies from one council to another, they are yet not fully playing the role that has been envisioned, particularly in terms of conflict resolution among users. As RBCs continue to consolidate, it is expected that they will play a more active role in the definition of the plans and their implementation.  CONAGUA has developed an additional 19 aquifer management plans (i.e., slightly over the 18 that were originally envisioned). These plans, which are developed with the participation of users and other stakeholders, focus primarily on aquifers that are being overexploited or those that are approaching that stage. The challenge still ahead pertains to their successful implementation.  Participation of women, youth, the elderly and indigenous people has increased through their inclusion in the Mexican Committee for Sustainable Use of Water since 2009. Main outcomes  Consistent with the IWRM approach, basin-centered entities—i.e., RBOs and RBCs—are playing an increasing role in the sector. The RBOs and RBCs also helped operationalize other IWRM guiding principles, including furthering coordination among different levels of government, the participation of communities, users and the private sector in decision-making and in the implementation of programs and projects. While the functioning of basin center institutions, RBCs in particular, have not yet achieved their full potential, they are all now operational and are gradually being empowered.  Water resources management plans at the basin level are being developed in an integrated, multi-sector, participatory manner. Developed jointly by the Mexican Institute of Water Technology (Instituto Mexicano de Tecnología del Agua – IMTA) and the local RBOs, they are fully consistent with planning instruments developed for each sexenio at the federal level, including the PND and the PNH, as well as the country’s long-term development vision (i.e., Mexico 2030 – Proyecto de Gran Visión). 32 d. Regulatory and administrative capacity of water resources Key Actions Taken  A total of 13 water banks and twenty support offices have been established in order to foster the sustainable management and efficient administration of water resources, the transfer of water rights in particular. Their functions include: to provide guidance on the technical and hydrological characteristics of the region under their responsibility; provide consultancy regarding the regulations applicable for the process of transmission of water rights; manage the transfer process from start to finish; and publish and disseminate announcements for the transmission or acquisition of water rights.  Water availability has been published for 627 river basins, increasing the number from 91 to 722 river basins.  New regulations have been formulated on the use of water in priority basins and aquifers. However, the legal aspects are still under review. Multiple layers of legal review at CONAGUA, SEMARNAT and the Presidency levels and the lack of clear and consistent criteria has proved to be a serious bottleneck in the issuing of new regulation. Main Outcomes  CONAGUA has strengthened the institutional framework for the transparent and effective transfer of water rights. Water banks are now operational in the country’s entire territory. By providing users upfront advice on the technical, legal, and administrative feasibility of transferring specific water rights, water banks are enhancing the overall transparency of the transfer of water rights, facilitating the process for users and, presumably, fostering rational decision making on their part. Their effectiveness is denoted by the high levels of satisfaction reported by users.13 There is no indication, however, that processing times have improved significantly, as parts of the administrative process of water rights transfer is outside the orbit of the water banks.  A new online platform has been developed under the water banks to develop a virtual market for water rights, which has the potential to increase the transparency in the demand and supply of water rights and enhance the efficiency of the water rights market by addressing information imperfections. While the number of users has been increasing gradually since its inception, it has not yet achieved the social acceptance required to have a significant impact.  The publication of water availability for river basins has a significant impact on water management, as it is a key input in enhancing the administration of water resources, including decision on whether to grant new concessions as well as the need to impose tighter regulations.  On the regulatory side, cumbersome and slow legal review procedures hamper CONAGUA’s regulatory functions. This is a particularly serious in the context of priority basins and aquifers that are already highly vulnerable and susceptible to the overuse that continues to take place during the protracted review period. This is one of the reasons leading to the preparation of a new water law, which is currently being formulated. Policy Area 2. Mainstreaming Adaptation to Climate Change in Water Programs PDO 2 - Mainstreaming Adaptation to Climate Change in Water Programs Policy Framework  Building upon the PNH’s new focus on climate change in the water sector (i.e., Objective No. 7), the operation’s second policy area focused on the development and adoption of a water sector normative framework and financial mechanisms supporting adaptation to climate change activities in water resource management; agricultural water management; sustainable use and conservation of water, including waste water treatment and reuse; and efficiency improvements for water utilities. 13 Customers report over 99 percent satisfaction in the surveys that were conducted among 5,000 users in 2011, with 86.43% percent characterizing the services provided by the water banks as excellent and 12.2 percent as “good� (CONAGUA’s Compendio Estadístico de Administración del Agua 2012, p. 26). 33  At the policy level, the operation supported GOM’s efforts to strengthen existing federal programs and norms by incorporating a set of financial incentives that explicitly address adaptation in the design and implementation of those programs and norms. The objective was to mainstream adaptation to climate change by focusing on reforming financing mechanisms and the normative and regulatory frameworks in the water sector, with a specific focus on: a. Aquifer recharge; b. Climate change adaptation practices in treatment plants; c. Forest restoration; and d. Irrigation efficiency. a. Aquifer recharge Major Actions Taken  CONAGUA issued two norms to provide regulatory instruments to promote the conservation of groundwater resources. Specifically:  Norm No. 014 regulates requirements for the recharge of aquifers with treated water including required water quality, operation and monitoring of the recharge systems.  Norm 015 regulates artificial recharge from rainwater and drainage in projects with a flow of at least 60 liters/second and includes the technical requirements to execute these activities.  CONAGUA now publishes water availability for all the aquifers in the country. Between 1997 and 2012, CONAGUA more than tripled the number of aquifers with published information on water availability, from 202 to 653 aquifers.  A pilot program is being implemented to promote the utilization of treated water in irrigation. Main Outcomes  The protection of groundwater resources is one of the main “no regrets� activities that can be undertaken. The conservation of aquifers provides an intergenerational mechanism to ensure the sustainability of resources. Artificial recharge serves different purposes, including to mitigate the effects of overexploitation (such as lower water levels and saline intrusion), as a natural treatment in the subsoil, and to manage aquifers as storage areas and natural aqueducts.  The publication of water availability of aquifers has a significant impact on water management, as it is a key input in the decision to grant new concessions as well as the need to impose tighter regulations on individual aquifers.  Although the program’s implementation proved more time-consuming that anticipated due to the need to subscribe legal agreements with users who agree not to use first-quality water for irrigation, the concept has been successfully tested. There are now 7,807 hectares being irrigated only with treated water, exceeding the original goal of 5,000 hectares. b. CCA-conducive financial incentives for treatment plants Major Actions Taken  CONAGUA has incorporated in its Wastewater Treatment Program (Programa de Tratamiento de Aguas Residuales - PROTAR) criteria promoting the recharge of aquifers and water reuse for the conservation of groundwater resources. The program, which provides funding to water providers for the expansion, construction or rehabilitation of treatment plans, provides financial incentives to those projects that favor climate change adaptation actions, such as the reuse of treated effluent—i.e., the higher the percentage of waste water reused, the higher the amount of funding. Operation and maintenance costs are partly funded through transfers based on volume of waste water treated to pre-defined quality standards. Main Outcomes  Under PROTAR, water utility companies are receiving funding from CONAGUA to increase and promote water reuse and aquifers recharge.  PROTAR accounted for 8.1 percent of all CONAGUA’s investment programs in 2011.  The volume of treated water increased from 38.3 to 47.5 percent of collected waste water between 2007 and 2012.  The anticipated 60 percent target is expected to be achieved and exceeded in 2013 or 34 early 2014, once the various treatment plants that are currently in the pipeline are completed. One of them is the Atotonilco treatment plant, which is the largest in the country with a 23 m3/second planned capacity. While there have been delays in construction, it currently presents 54 percent of progress and is expected to be completed in 2013 or early 2014. This treatment plant will benefit from the financial incentives for operation and maintenance. c. Forest restoration Key Actions Taken  CONAFOR has issued operating rules for the Special Program for the Conservation and Protection of Micro-Watersheds (SPRMPA) in priority areas to promote the reduction of soil erosion, reforestation, and forest protection. SPRMPA promotes soil conservation and reforestation activities in degraded areas as a means to mitigate the effects of climate change. The program has several notable elements, including an emphasis on the conservation of micro-watersheds that is critical for water resource management and an innovative payment mechanism to offset the opportunity costs associated with forgoing forest conversion. Main Outcomes  In its preliminary phase, the program focused on the Cutzamala watershed, an area that is politically, institutionally and socially complex and that includes parts of the states of Mexico, Michoacán and the Federal District. The program was later expanded to nine additional areas, demonstrating the importance and priority that the federal government has placed on this program.  Degraded areas of micro-watersheds in priority areas and forest cover are being restored under the program. Specifically, the area of restored forests has increased significantly, from 3,000 to 23,704 hectares between 2009 and 2012, amply exceeding the original target of 13,000 hectares.  Moreover, CONAFOR reports that the pilot experience financed under this operation had several institutional impacts. Including strengthening the importance given to water resources in the context of the program, and successfully testing the principle of integrated interventions, which was subsequently extended to other programs.  A US$350 million IBRD operation (i.e., the Forests and Climate Change Project; approved in January 2013) continues to provide support to this action. d. Irrigation Key Actions Taken  CONAGUA has strengthened the protection of overexploited aquifers by means of its programs to improve the water productivity of irrigation. The agricultural sector is the main user of water, consuming approximately 77 percent of water resources. As a result, effective water policy must include measures to reduce the demand for water in agriculture, improve the efficiency of irrigation systems, and increase the adoption of water-saving technologies.  CONAGUA has three federal programs targeting the agricultural sector, one of which, the Program for Modernization and Technology Upgrade of Irrigation Units (PMTUR), is particularly relevant to this operation. The PMTUR’s main objective is to improve water productivity in irrigation systems by funding agricultural producers. In 2009, the operating rules incorporated new criteria prioritizing activities that improve the sustainability of the resource. The main additions are:  Giving priority to those projects in which users give back to CONAGUA more than 20 percent of their concession for water use;  Projects to decrease the use of water from overexploited aquifers; and  Projects that promote agricultural activities with low water consumption. Main Outcomes  Despite a decrease in 2011 in due to the freezing in the State of Sinaloa, the productivity of irrigation districts has increased from 1.41 to 1.86 kg per m3 between 2007 and 2012, compared to the original target of 1.66 kg per m³. 35 Table 1. Productivity of irrigation districts – 2007-2012 Year 2007 2008 2009 2010 2011 2012 Target PNH 1.45 1.49 1.54 1.58 1.62 1.66 Actual 1.46 1.46 1.37 1.55 1.22 n.a. Source: CONAGUA (2012). e. Other actions Key Actions Taken  CONAGUA is responsible for the implementation of 41 of the 50 water-related targets included under the 2009-2012 PECC, while the remaining nine are implemented jointly with other institutions.  All CONAGUA technical staff is required to take training on climate change in the water sector, with a duration of eight hours and 30-question final evaluation. Up to now, 2,861 members of CONAGUA technical staff have taken the course, which is a requirement of CONAGUA’s administrative service career. Main Outcomes  As of July 2012, CONAGUA was among the agencies with the highest achievement of PECC targets, with 88 percent for climate change targets as a whole and 98 percent for those focusing on adaptation.  CCA is being given increasing importance in the context of water resources, as denoted by its prominence in recent CONAGUA’s publications, including a two-part series in Reportes Economicos in 2011 and an article in the Gaceta del Agua 2012, 36 Annex 8. List of Supporting Documents Canizales Pérez, R. (2011), “Efectos del cambio climático en la administración del agua en México,� CONAGUA’s Gaceta de Administración del Agua, Edición 2012, pp. 20-33, SEMARNAT, México, D.F. COLMEX (2011). Agua para las Américas en el Siglo XX, El Colegio de México, Comisión Nacional Del Agua – CONAGUA, México, D.F. Comisión Inter-sectorial de Cambio Climático (2009), Programa Especial de Cambio Climático 2009-2012, Poder ejecutivo, México, D.F. CONAGUA (2012), Compendio Estadístico de Administración del Agua 2012, México, D.F. CONAGUA (2011), “Efectos del cambio climático en la administración del agua en México - Segunda Parte,� Reportes Económicos, No. 14, Subgerencia de Estudios Económicos de la CONAGUA, México, D.F. CONAGUA (2011), “Efectos del cambio climático en la administración del agua en México - Primera Parte,� Reportes Económicos, No. 13, Subgerencia de Estudios Económicos de la CONAGUA, México, D.F. Herron, C. (2013), Water and Climate Change in Mexico 2007-2012: Analysis and Future Recommendations, Manuscript, January 2012, Mexico City. Secretaría de Medio Ambiente y Recursos Naturales – SEMARNAT (2013), Reporte de cumplimiento del Programa Nacional Hídrico 2007-2012, Subdirección General de Planeación, April, 2013, México, D.F. SEMARNAT (2012), México - Quinta comunicación nacional ante la Convención Marco de las Naciones Unidas sobre el Cambio Climático. November 1, 2012; México, D.F. UNFCCC (2011), Water and climate change impacts and adaptation strategies, Technical Paper. Bonn. World Bank (2009-2013), Documents in Project’s Electronic File, including Loan Agreement, Program Document, Aide Memoirs, Back-to-Office Reports, and Project Status Reports; IRIS, Washington, D.C. World Bank (2013), Agua urbana en el Valle de México:Un camino verde para mañana?, March 2013, Washington, D.C. World Bank (2011), Mexico - Forests and Climate Change Project, Project Appraisal Document, Report No. 65959-MX, December 21, 2011, Washington, D.C. World Bank (2011), Mexico - Modernization of the National Meteorological Service for Improved Climate Adaptation Project, Project Appraisal Document, Report No. 67971-MX, April 18, 2010, Washington, D.C. World Bank (2010), Mexico - Framework for Adaptation to Climate Change in the Water Sector Development Policy Loan, Program Document, Report No. 53637-MX, May 6, 2010, Washington, D.C. World Bank (2008), Country Partnership Strategy for the United Mexican States for the Period FY2008–2013, Washington, D.C. 37 Annex 9. Interviews Conducted during the ICR Mission SEMARNAT Juan Godinez Zuñiga, Subdirector de Crédito Externo Roberto Cabral y Bowling, Director General Adjunto de Análisis de Políticas y Financiamiento Estratégico Luis Muñozcano �lvarez, Director General Adjunto Para Proyectos De Cambio Climático CONAGUA Adán Carro de la Fuente, Desarrollo, Innovación Y Capacitación, Gerencia de Ingeniería y Normas Técnicas Noé Salazar Ramírez, Jefe de Proyecto de Concertación y Seguimiento del Crédito Externo, Gerencia de Planificación Hídrica Griselda Medina Laguna, Subgerente de Gestión y Evaluación de Proyectos con Crédito Externo, Gerencia de Planificación Hídrica Horacio Rubio, Gerente de Aguas Superficiales e Ingeniería de Ríos, Gerencia de Aguas Superficiales e Ingeniería de Ríos Rubén Chávez Guillén, Gerente de Aguas Subterráneas de la Subdirección General Técnica Roberto Aurelio Sención Aceves, Subgerente de Evaluación y Ordenamiento de Acuíferos, Gerencia de Aguas Subterráneas Orlando Jaimes Martínez, Gerente Ingeniería y Normas Técnicas, Suraya Padua Díaz, Gerente de Bancos del Agua, Subdirección General de Administración del Agua Benjamín Jiménez, Jefe de Proyecto, Bancos de Agua José Alfredo Galindo, Gerencia de Consejos de Cuenca, Coordinación General de Consejos de cuenca y atención a emergencias Colin Herron, Diálogos por el agua y el Cambio Climático Milton Henestrosa Zárate, Gerente de Programas Federales de Agua Potable y Alcantarillado, Subdirección General de Agua Potable, Drenaje y Saneamiento Enrique Mejía Maravilla, Gerente de Calidad del Agua Martín Montero, Subgerente de Monitoreo Atmosférico Ambiental, Servicio Meteorológico Nacional CONAFOR Josefina Braña, Directora de Cambio Climático y Promoción Comercial Other agencies Arnulfo Leyva, Consultor de Gestión Financiera, Banco del Ahorro Nacional y Servicios Financieros, S.N.C. Diana Gabriela Asaf, Gerencia De Control Financiero Internacional, Banco del Ahorro Nacional y Servicios Financieros, S.N.C. World Bank Alessandra Campanaro, Task Team Leader Javier Zuleta, Sr. Water Resources Mgmt. Specialist Diego Juan Rodriguez, Senior Economist Enrique Aguilar, Consultant 38 Annex 10. Maps http://siga.cna.gob.mx/Mapoteca/Regiones%20Hidrologicas/MapaRegHidro.htm 39 40