Document of The World Bank FOR OFFICIAL USE ONLY Report No. 83966-CO INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY COUNTRY PARTNERSHIP STRATEGY PROGRESS REPORT FOR COLOMBIA FOR THE PERIOD FY12-FY16 April 16, 2014 Colombia and Mexico Country Management Unit Latin America and Caribbean Region The International Finance Corporation, Colombia Regional Office Latin America and Caribbean Region The Multilateral Investment Guarantee Agency This document has a restricted distribution and may be used by recipients only in the performance of their official Duties. Its contents may not otherwise be disclosed without World Bank authorization. The Executive Directors discussed the last Country Partnership Strategy on July 21, 2011 CURRENCY EQUIVALENTS (Exchange rate effective as of April 7, 2014) Currency Unit Colombian Pesos US$1.00 COP 1951.5 FISCAL YEAR January 1 to December 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS ANI Agencia Nacional de Infraestructura (National IDA International Development Association Infrastructure Agency) APEC Asia-Pacific Economic Cooperation IFC International Finance Corporation APL Adaptable Program Loan IMF International Monetary Fund BanRep Banco de la Republica (Central Bank) JSDF Japan Social Development Fund CAF Banco de Desarrollo de América Latina (prev.: LAC Latin American and the Caribbean Region Corporación Andina de Fomento) (Development Bank of Latin America) CAT DDO Catastrophe Deferred Drawdown Option NGO Nongovernmental Organization CCT Conditional Cash Transfer NTF Norwegian Trust Fund COLCIENCIAS Departamento Administrativo de Ciencia, NUTP National Urban Transport Program Tecnología e Innovación (Department for Science, Technology and Innovation) CoP Community of Practice OECD Organization for Economic Co-operation and Development CPF Country Partnership Framework M&E Monitoring and Evaluation CPPR Country Portfolio Performance Review MESEP Misión para el Empalme de las Series de Empleo, Pobreza y Desigualdad CPS Country Partnership Strategy MHCP Ministry of Finance and Public Credit CTF Clean Technology Transfer MIC Middle Income Country DAC Development Assistance Committee (OECD) NDP National Development Plan DDO Deferred drawdown option PFM Public Financial Management DDR Disarmament, Demobilization, and Reintegration PPP Public Private Partnership DNP Department of National Planning PISA Programme for International Student Assessment DPL Development Policy Loan PSIA Poverty and Social Impact Analysis ECD Early Childhood Development SFLAC Spanish Fund for Latin America and the Caribbean FARC Fuerzas Armadas Revolucionarias de Colombia SME Small and Medium-Size Enterprise FDI Foreign Direct Investment SCD Systematic Country Diagnostic FDN Financiera de Desarrollo Nacional (National SSC South-South Cooperation Development Bank) FINDETER Financiera del Desarrollo Territorial (Financial SSKE South-South Knowledge Exchange Institution for Territorial Development; a Colombian public development bank) GCR Global Competitiveness Report STI Science, Technology and Innovation GDP Gross Domestic Product TA Technical Assistance GEF Global Environment Facility UMI Upper Middle Income Country GFDRR Global Facility of Disaster Reduction and URT Unidad Administrativa Especial para la Gestión de la Recovery Restitución de Tierras (Restitution Unit) GOC Government of Colombia WBG World Bank Group IBRD International Bank for Reconstruction and WBI World Bank Institute Development IDB Inter-American Development Bank WDR World Development Report IDF Institutional Development Fund QE3 Third Round of Quantitative Easing ii ACKNOWLEDGEMENTS This CPSPR was prepared by a team led by Jutta Kern (World Bank) in collaboration with Luciana Marchesini (IFC) and Dan Biller (MIGA) with inputs from the Colombia Sector Leaders Daniel Sellen (SD), Eva Gutierrez (FPD), Samuel Freije-Rodriguez (PREM) and Wendy Cunningham (HD), the LAC gender team and Abraham Fox (MIGA). Barbara Cunha, Domoina Rambeloarison, Leonardo Escandon and Beatriz Elena Franco were members of the core team. Valuable suggestions were provided by Issam Abousleiman, Colombia Country Manager, Harold Bedoya, Country Operations Advisor, and the broader Colombia Country Team. The report benefitted from peer reviewer comments by Peter Siegenthaler, Bernard Harborne, Gustavo Saltiel and Jose Cuesta. We are grateful for discussions and consultations we had on the Colombia country program with our counterparts in the Ministry of Planning and Ministry of Finance and Public Credit. The team is grateful for the overall leadership of Gloria M. Grandolini, Country Director for Colombia and Mexico. IBRD IFC MIGA Regional Vice President LCR: Vice President CXA: Vice President and CFO: Hasan A. Tuluy Jean Philippe Prosper Michel Wormser Country Director: Regional Director: Director of Economics and Sustainability: Gloria M. Grandolini Irene Arias Ravi Vish Task Team Leader: Task Manager: Task Manager: Jutta Ursula Kern Luciana Marchesini Dan Biller iii Republic of Colombia Country Partnership Strategy (FY12-16) Progress Report Contents I.  Country Context .................................................................................................................... 1  I.1  Macroeconomic Stability .............................................................................................................. 1  I.2  Growth and Structural Changes .................................................................................................... 2  I.3  Social Equity................................................................................................................................. 3  I.4  Political Developments and Progress in the Peace Process .......................................................... 4  II.  Implementation Progress of the CPS Program .................................................................. 5  II.1  Progress towards achieving CPS outcomes .................................................................................. 5  II.2  Portfolio Performance and Program Implementation ................................................................... 7  II.3  Lessons Learned ........................................................................................................................... 8  III.  The CPS Going Forward ...................................................................................................... 9  III.1  Supporting Peace Consolidation (Engagement Area 1)............................................................... 10  III.2  Supporting Solutions for Productivity, Innovation and Equity (Engagement Area 3) ................ 10  III.3  Working as One World Bank Group with IFC and MIGA......................................................... 11  IV.  Risks ...................................................................................................................................... 12  V.  Annexes................................................................................................................................. 13  Annex 1A. Changes to the Results Matrix.......................................................................................... 13  Annex 1B. CPS FY12-16 REVISED RESULTS MATRIX ............................................................... 16  Annex 2. Progress towards CPS outcomes as of December 31, 2013. ............................................... 21  Annex 3. Selected Indicators of Bank Portfolio Performance and Management (IBRD, GEF) ......... 31  Annex 4. Colombia: Active, Closed IBRD Lending Operations per CPS Engagement Area ............ 32  Annex 5. Colombia Lending Program: Indicatively Planned FY12/13 vs. Actual FY12-14 ............. 33  Annex 6. Colombia: Active, Closed Trust Funds per CPS Engagement Area........................................ 34  Annex 7. Colombia CPS Knowledge Services Program per CPS Engagement Area ........................ 35  Annex 8. Update on Colombia’s Role in South-South Knowledge Exchanges ................................. 36  Annex 9. Summary of Colombia Client Survey 2013 ........................................................................ 38  Annex 10. World Bank Engagement in Post-Conflict and Peace Building (late 1990s-2016)........... 40  Annex 11. IFC Committed and Outstanding Portfolio ....................................................................... 41  Annex 12. IFC Investment Operations Program................................................................................. 42  Annex 13. Colombia Gender Score Card ........................................................................................... 43  Annex 14. Country at a Glance ........................................................................................................... 44  Tables and Boxes Table 1. Key Economic Indicators ................................................................................................................................ 2  Table 2. IBRD Loans Approved FY12-Q2/FY14, as of December 2013 ...................................................................... 7  Table 3. Colombia Indicative IBRD Lending* Program FY14-15 ................................................................................ 9  Box 1. Who and Where are the Poor in Colombia? ....................................................................................................... 4  Box 2. Most Notable Results to Date under the CPS .................................................................................................... 5  Box 3. Colombia Portfolio at Risk and Remedial Actions to Improve Portfolio Health ............................................... 8  iv Republic of Colombia Progress Report for the Country Partnership Strategy FY12-16 I. Country Context I.1 Macroeconomic Stability 1. Colombia has consolidated its position as a top performer in Latin America. Colombia’s sound macroeconomic management, based on a combination of inflation targeting regime, floating exchange rate, and a strong track record of fiscal reforms, has helped the country weather the global financial crisis and sustain high growth rates since. Sound macro management also helped create buffers and increase resilience to future shocks. These results contributed to the upgrade of Colombia’s public debt ratings by three rating agencies in 2013, including to one notch above investment grade (BBB) by Standard & Poor’s. Economic achievements also motivated the OECD to invite the country to officially start the accession process in 2013. 2. Colombia’s monetary policy management is aligned with international best practices and the country has room to accommodate external shocks. Uncertainties about the external environment increased recently, fueled by the US monetary tapering and lower growth prospects for China and other emerging markets. However, Colombia’s fundamentals and monetary policy tools have made the country better able to cope with these events. During the CPS period, inflation has remained broadly within the targeted range of 2 to 4 percent, reaching 1.94 percent in 2013. Colombia’s flexible exchange rate also builds resilience to exogenous shocks and allows implementing independent and countercyclical monetary policies. Colombia can rely on currency depreciations to absorb adverse shocks and stimulate local economic activity. Colombia’s policy interest rate has been timely adjusted to counterbalance economic fluctuations. In 2011, when the economy presented signs of overheating, the rate was gradually increased from 3 to 5 percent. In mid-2012, economic activity started to moderate and the policy rate was gradually reduced to reach 3.25 percent in March 2013, where it has remained since. The Central Bank (Banco de la Republica) still has room to implement further rate cuts if external conditions deteriorate. 3. Sound fiscal management and a set of strong reforms helped reduce public debt and improve its profile, but the fiscal account is still exposed to a sudden drop in oil prices. Since beginning of the CPS implementation, Government has implemented important reforms including a comprehensive tax reform and the setting of a fiscal consolidation rule and medium term fiscal framework, which gradually adjusts the structural deficit to 1 percent by 2020. Reforms and sound fiscal management have contributed to a decline in the Central Government deficit from 2.8 percent in 2011 to 2.4 percent in 2013 and are likely to keep fiscal policy in check over the remainder of the CPS period. Sound management also led to a reduction in the Central Government Debt from 45 percent of GDP in 2003 to 32 percent in 2012. Colombia’s above-investment-grade credit ratings have allowed access to international capital markets at favorable terms, and to improvements in the overall debt profiles. Nevertheless, a sharp decline in oil prices could temporarily affect fiscal outcomes as oil related revenues represent 17 percent of total Central Government revenues. In addition, monetary tightening in the developed world could affect debt financing conditions. In these scenarios, the Colombia stabilization fund and the renewed US$5.8 billion IMF flexible credit line would help buffer adverse market conditions. 1 4. Strong capital inflows have helped finance a Table 1. Key Economic Indicators 2013 2014 2015 2016 2017 broadly stable external current account deficit as Real GDP growth (%) 4.3 4.3 4.5 4.5 4.4 percent of GDP, but the external accounts could also GDP Deflator (% growth) 1.9 2.9 2.9 2.8 2.9 be affected by a sharp drop in commodity prices. Oil price, Colombian mix (US$/barrel) 102.4 97.4 93.1 90.2 88.5 Gross national savings 20.1 20.8 20.6 20.4 20.4 The external current account deficit in 2013 was slightly Gross dom. investment 23.4 23.2 23.1 23.0 23.0 higher than in 2012 (3.3 percent of GDP), reflecting a Export growth (FOB, %) 1.5 5.0 4.8 3.5 4.0 - Oil exports growth (%) 4.8 6.2 4.1 2.4 3.1 small decline in export and small moderation of Import growth (FOB, %) 3.5 4.0 6.0 4.8 4.9 domestic demand growth. The financial account posted a Current account balance -3.0 -2.4 -2.7 -2.6 -2.6 sizable surplus of about 5 percent of GDP, driven by Foreign direct investment (net) Gross reserves (months) 4.4 2.6 2.5 2.4 2.3 6.8 6.7 6.7 6.9 6.8 large net inflows of FDI. Colombia’s external position is Total external debt 20.9 20.0 19.4 18.7 18.1 expected to remain balanced throughout the CPS term, GDP (US$ billions) Combined Public Sector 378.1 372.3 385.0 406.3 430.9 but the country would be affected if a sharp decline in Total Revenue 28.0 27.5 27.0 26.8 26.6 commodity prices were to materialize. Commodity Tax Revenue 18.9 18.6 18.5 18.4 18.3 Non-tax 9.1 8.9 8.5 8.4 8.3 exports (mostly oil) accounts for almost 60 percent of Total expenditures 29.1 28.7 28.0 27.7 27.5 total exports. In addition, the bulk of foreign direct Current expenditures 21.2 21.7 21.5 21.4 21.3 investment inflows are channeled to commodity-related Capital Expenditures NFPS, Overall Balance 7.8 7.0 6.6 6.3 6.3 -1.0 -1.2 -1.0 -0.9 -0.9 projects (e.g., oil and mining). A sharp and prolonged Primary balance 1.6 1.5 1.6 1.5 1.5 fall in the prices of Colombia’s main export Debt, net o.w. foreign currency 31.8 31.1 29.7 28.3 26.8 12.8 12.4 12.0 11.6 11.2 commodities would weaken its balance of payments GDP (COP trillion) 706.7 737.1 769.9 804.5 840.3 and increase external financing needs. Colombia has FOB = Free-on-board; Source: World Bank Staff projections strong trade links with the U.S. and Europe (accounting based on DANE (Statistics agency), Central Bank, Ministry of Finance and Public Credit, and the IMF. for over half of total exports), as well as with China and Venezuela (about 5½ and 4½ percent of total exports, respectively). Its current account balance depends on trade with these partners, and would be adversely affected by lower growth in any of them. However, the authorities remain committed to continue building policy buffers, including fiscal consolidation targets, continuing to strengthen their international reserves position, and continue upgrading financial system regulation to mitigate the impact of possible shocks. I.2 Growth and Structural Changes 5. Colombia’s high economic growth has closed the country’s income gap with other LAC and OECD peers. In the last decade the country grew at an average rate of 4.5 percent, well above the regional average of 3.7 percent. Volatility was also lower than in the previous decade, and even during the global crisis, Colombia sustained positive growth (1.7 percent). This result helped Colombia’s convergence not only with Latin American countries but also with the US and other OECD countries. While per capita GDP (PPP adjusted) represented 16 percent of US income and 21 percent of the average OECD income in 2003, it reached 20 percent and 26 percent, respectively, in 2012. On the other hand, the income gap with fast growing Asian economies continued to broaden during the decade, mainly driven by differences in productivity growth. 6. Economic growth was favored by sound macro policies, high commodity prices and abundant international liquidity. Colombia’s macroeconomic achievements were recognized by the markets and have consolidated the country as an investment destination, taking advantage of abundant international liquidity. High commodity prices contributed to an expansion of extractive industries production and exports. Between 2003 and 2012, extractive activities grew at an average rate of 6.4 percent—almost two points above the national average GDP growth— and extractive exports increased from 29 percent to almost 60 percent of total exports. The service sector also experienced above average growth during the decade led by construction (7.5 percent), transport and communication services (6.3 percent) and financial services (5.1 percent). 2 7. Going forward, tailwinds are expected to recede and Colombia will rely more on its ability to address structural bottlenecks to spur growth. As international investment conditions deteriorate and commodity prices stagnate, the extractive industries boom is likely to moderate. Economic growth will depend more on Colombian firms’ ability to sell competitive goods and services in internal and external markets. Addressing structural bottlenecks to competitiveness can bring large dividends. Colombia has a large infrastructure gap and the country places at 108 out of 144 countries in terms of infrastructure quality according to the Infrastructure Quality Index of the World Economic Forum 2012. Human capital levels are relatively low. While progress in education attainment and achievement has been made, Colombia is among the lowest ranking countries in the PISA student achievement test 2012, stressing the country’s underperformance relative to its middle-income status. Innovation rates continue to be low and Colombia’s management practices are among the weakest in the region according to the 2013 World Bank study on Latin American entrepreneurs. Finally, the armed conflict has had high direct and indirect costs that hindered economic activity in several parts of the country. Studies suggest estimated growth losses due to conflict range from 0.6 percent to 1.77 percent per year over the last decades. Addressing these bottlenecks would unleash Colombia’s growth potential with important social dividends. OECD accession will also provide a favorable context to advance this reform agenda. I.3 Social Equity 8. The recent economic developments ought to be viewed against the backdrop of a continued decline in extreme poverty rates since 2008 and robust progress on promoting shared prosperity. Using the World Bank’s “dollar twenty-five a day” poverty line, the incidence of extreme poverty declined from 8.8 to 5.5 percent of the population between 2008 and 2011. The Colombian official extreme poverty line is nearly double the Bank’s benchmark at about US$2 equivalent, but a downward trend of poverty rates is also observed (from 17.7 to 10.4 percent between the years 2002 and 2012). Poverty reduction has been accompanied by progress in shared prosperity, with the income growth of the bottom 40 percent of the population reaching 7.9 percent over the period 2008-2012 as compared to 5.2 percent for the total population. In addition to monetary measures, Colombia also improved with respect to multidimensional poverty. According to Colombia’s new official poverty measurement, the Multidimensional Poverty Index (MPI) introduced in 2011, a person is considered poor when he or she is considered deprived in at least five or more of fifteen welfare indicators, which include: (1) household education conditions; (2) childhood and youth conditions; (3) labor; (4) health; and (5) access to household utilities and living conditions. The MPI declined from 49 percent in 2003 to 27 percent in 2012. 9. Many households in Colombia joined the middle class and fewer households are poor; but still a substantial number of them are vulnerable to fall back into poverty. During the 2002 to 2011 period, Colombia increased the size of its middle class by 10.2 percentage points while its vulnerable class increased by 4.6 percentage points according to the World Bank study ‘La década ganada’. The vulnerable class surpassed the poor for the first time in 2011 and if these trends continue, the middle class should surpass the poor in the near future. These trends, as well as the reduction in moderate poverty, are mostly explained by sustained economic growth and by continuously improving labor market outcomes. The unemployment rate has followed a downward path, reaching an average of 9.6 percent in 2013, down from 10.4 percent in 2012, accompanied by a slight increase in the overall participation rate to 63.7 percent. GoC has also taken affirmative action in encouraging the hiring of women. Law No. 1429 of 2010, the “First Job Act,” gives tax benefits to employers who hire single mothers and women over 40 who have been unemployed for 12 months. 3 10. Transfers played an important role in the observed reduction in extreme poverty over the decade. While the income from transfers accounted for 5.7 percent of income for the bottom quintile in 2002, it represented 16.1 percent of income for the same group in 2012. The associated decrease in poverty was 28 and 19 percent, respectively, for moderate and extreme poverty. The observed increase in the relative size of income from transfers coincides with the expansion of conditional cash transfer programs, such as Familias en Accion. The coverage of the latter increased from around 514,000 households in 2005 to about 2.79 million households in 2012 (nearly 25 percent of households in the country). These statistics suggest that the expansion of safety nets was both well targeted and Box 1. Who and Where are the Poor in Colombia? effective in reducing poverty, and in The poor in Colombia have fewer years of education, have more particular extreme poverty. In contrast, the members in their households, live in households in which both man contribution of pensions to poverty reduction and women are less likely to work, and are more likely to be headed by a female compared to the vulnerable and the middle class. in Colombia was low, which is not surprising, Ethnic minorities and the elderly face high rates of poverty. given the country's ‘pay as you go’ pension Colombia’s National Bureau of Statistics (DANE) reports that in 2012 the incidence of moderate poverty among households headed by a system with 1.4 million beneficiaries who are senior citizen (older than 65 years old) was 27.6 percent, but in rural almost exclusively at the upper end of the areas it was much higher (42.7 percent). According to a recent study by Angulo et al. (2011)*, indigenous households have both the highest income distribution. rate of multidimensional poverty (58 percent in 2010) and the lowest 11. Reductions in inequality have been reduction over the 2003-2010 period. The average family per capita income of indigenous (Afro-Colombian) households is 59 percent (26 more modest than those in poverty rates. percent) lower than that of household that belong to a different ethnic Inequality, measured by the Gini coefficient, group, suggesting that the prevalence of monetary poverty among these groups is likely to be significantly higher. floated between 0.55 and 0.57 during the first The large and historical disparities between urban and rural areas part of the decade, but fell during the past are increasing. Despite the significant decline in the incidence of poverty rates at the national level, moderate poverty not only remains three years, reaching 0.539 in 2012. Even in higher in rural areas relative to urban ones, but the gap between these 2012, the year with the lowest level of two regions is widening. In the last decade, the ratio of moderate poverty between rural and urban areas increased from 1.35 to 1.64. inequality, the richest 10 percent of the This means that the reduction of poverty has been slightly biased population still held 42 percent of total towards urban areas. Moreover, the initial gap has not closed after 10 years of poverty reduction, the moderate poverty rate of rural areas in income while the bottom forty percent of the 2012 is still higher than the poverty rate of urban areas in 2002. population had around 10 percent of total Currently, in the Colombia portfolio, three projects and four trust funds have direct impact on ethnic minorities. income. This inequality is in part related to * Angulo, R.C., Díaz, Y. & Pardo, R. (2011). “Índice de Pobreza pockets of persistent poverty among some Multidimensional para Colombia (IPM-Colombia) 1997-2010,” Archivos de Economía 009228, Departamento Nacional de Planeación. ethnic groups and severe regional inequalities (see Box 1). I.4 Political Developments and Progress in the Peace Process 12. Colombia’s Congressional elections were held on March 9 and Presidential elections are scheduled for May 25, 2014. President Santos has entered the campaign to compete for another four-year presidential mandate. Recent surveys show that up to 30 percent of the population is still undecided. It is expected that the elections will be decided by a tight margin. The new administration will settle in August 2014 and will prepare a new National Development Plan. 13. Advances were made in the peace process and on the post-conflict agenda, notably with the approval on legislation on victims and land restitution. The Norwegian Refugee Council's Internal Displacement Monitoring Centre reports that in March 2013 the GoC estimated 4.7 million internally displaced persons due to violence and conflict, putting Colombia worldwide in second place. Peace negotiations with the Fuerzas Armadas Revolucionarias de Colombia (FARC) which have started in November 2012 have reached several breakthroughs and have culminated in an agenda of six themes: rural development, political participation, drugs trade, victims’ reparation, end of armed conflict and verification, validation and implementation of the agreement. So far, agreement has been reached on two critical points, namely the agrarian 4 pact and political participation. In addition, the approval of legislation on victims and land restitution were critical steps in promoting the post conflict agenda. If agreement is reached on the six-point program, a National Referendum will have to be held. II. Implementation Progress of the CPS Program II.1 Progress towards achieving CPS outcomes 14. Strong progress against CPS targets has been observed across all engagement areas and most outcomes are on track to achieve or surpass their targets as described in detail in Annex 2. Box 2 provides an overview of most notable results to date. Box 2. Most Notable Results to Date under the CPS  Building on successful lending services in support of Colombia’s conditional cash transfer program Familias en Accion, a range of knowledge and convening services helped to achieve better coverage of RED UNIDOS (an umbrella of the government’s numerous anti-poverty initiatives), already reaching 1,439,919 additional households.  The national system for student assessments has been improved by introducing tests for 3rd grade; tests for grades 3, 5 and 9 are now entirely comparable across grades; the enrollment for upper secondary has improved to 46.6%; tertiary enrollment of students from poor households has increased from 49.7% in 2010 to 58.1% in 2012. IFC helped double the enrolment of Uniminuto, a network of non-profit colleges, to 65,116 students.  Support for land protection culminated in the passage of the 2011 Victims and Restitution Law facilitating restitution of land to Internally Displaced Persons (IDPs) for the first time in Colombia. Through the new Land Restitution Unit more than 12,000 restitution claims have entered the administrative process, representing 482,272 hectares of land, of which nearly 2,000 claims have reached the judicial process. A Land Governance Assessment broadened the dialogue on land which is a critical issue for the peace transition and rural productive development.  The population benefitting from improved transportation services in large cities has increased from 1.7 million in 2011 to 2.3 million in 2013 through the NUTP. IFC supported Empresas Públicas de Medellín to improve access to water, sewerage services and electricity for more than 2.3 million people in Medellin and its surrounding areas.  Colombia’s Disaster Risk Management approach is innovative with two approved CAT DDOs and a CAT Swap under discussion. A master derivatives agreement with IBRD gives access to financial products for managing risks related to currency, interest rate, commodities, climate and natural disasters. Several loans have been converted to local currency to manage currency risks.  1044 or 95% of municipalities are educated, trained and aware of hazard risk reduction, 75 percent of Colombian municipalities have DRM plans, and 270 functioning geological or hydro-meteorological stations were connected with early warning systems, demonstrating strengthened technical capacity for disaster risk management.  16,000 hectares of natural forests have been conserved by bringing them under environmentally-friendly production systems by benefitting cattle ranching farms. 2.6 million hectares of core conservation areas and 57% of the surrounding territories have been brought under improved management systems in the Amazon Basin and 346 families have continued adopting sustainable production and management systems in these conservation mosaics.  More than 49,000 additional families benefitted from high value agricultural value chains through the Second Rural Productive Partnerships Project and associated knowledge services for agricultural insurance.  An innovative combination of programmatic knowledge services and three DPLs for an overall commitment of US$1.1 billion have promoted the progressive fiscal reform, influenced Colombia’s debt management strategy and supported policies to improve equity. The Bank’s Treasury department advised in-depth on the proposal, methodology and models of the debt management strategy, later approved by the Ministry of Finance. The Bank helped keep central government results for 2013 in line with the Fiscal Rule and Medium Term Fiscal Framework with a fiscal deficit at 2.3% of GDP or less.  IFC has taken a programmatic approach in infrastructure and capital market integration. IFC has been active in the port, road, telecom, urban infrastructure and oil, gas & mining sectors simultaneously for greater impact, bringing a total of US$731 million in volume, of which US$167 million is in equity. US$530 million was brought by other partners; Asian partners were brought as participants to LAC for the first time. With support from IFC’s Asset Management Company a US$185 million IFC equity investment in the regional pension fund Grupo Sura was booked strengthening local capital markets. The regional Distressed Asset Relief Program (DARP) was launched with 6 projects in Colombia, allowing for banks to sell their non-performing loans, clean their balance sheets and in turn focus on their primary business of lending. 5 15. Some of the programs supporting outcomes in the three engagement areas, observed changes in the originally envisaged approach. The adjustments are described below. 16. The approach to enhancing social promotion has been adjusted. A third Social Safety Net loan indicatively foreseen for FY13 was not pursued in favor of targeted knowledge services to improve efficiency and targeting of social safety nets. Government also abandoned the plan of merging the two key poverty reduction programs into one unified system. Instead, a strategy to better align the two programs was followed. No negative impacts for either program are expected and the two programs are crossing their databases so that beneficiary targeting that would have happened through a merged database is still happening, albeit through a different mechanism. 17. Some results under the Improved Sustainable Urban Development outcome are delayed. Results for population benefitting from improved transportation services in medium- sized cities are delayed. Seven medium-sized cities have joined the National Urban Transport Program (NUTP) in 2013 and are currently carrying out the construction phase. Loan signing and effectiveness of the NUTP project were delayed to accommodate a change in Colombian law affecting co-financing arrangements between national and local governments, the vigencias futuras (future earmarked budgetary commitments). The use of vigencias futuras was a fundamental element of the structure of the NUTP Project and the Borrower considered it appropriate to wait until the new Law regulating these was in place. 18. The approach to supporting low-income housing under the Improved Sustainable Urban Development outcome has changed. Due to legal limitations of the original support for low-income housing, most subprojects under the ‘Macroproyectos’ project will be dropped and the loan will be cancelled. However, the Bank will continue to support this critical area with a new approach: the Improving Access to Housing Finance for Low-income and Informally Employed Segments grant and the Second Sustainable Cities DPL address main bottlenecks based on the revised policy and will support residential savings schemes and the piloting of residential leasing products. 19. Some investments for Enhanced Disaster Risk Management have not been pursued. The related investment project had to be dropped from the pipeline due to government’s assessment that the city of Barranquilla would have insufficient financial and institutional capacity to absorb additional debt. DRM will continue to be priority area of support through programmatic knowledge services and financial products. Non-traditional financial solutions from the menu of catastrophe risk financing and weather derivatives will also most likely be preferred over a follow-up operation to the Disaster Vulnerability Reduction project. 20. The subnational agenda under the Improved Public Sector Management has been delayed. The Subnational Institutional Strengthening project, due to its innovative and complex structure and the restructuring of the responsible government agency (Subdireccion Territorial y de Inversion Publica) took longer than usual to prepare and was approved in December 2013, eighteen months after originally anticipated. Despite preparation delays, the project has now swiftly resumed implementation and will contribute to critical sub-national capacity building. 21. Support to the Improved Productivity and Innovation outcome has been refocused. Originally conceived to be supported by an Adaptable Program Loan to COLCIENCIAS, the focus has shifted following project restructuring. Discussions about the shape of the second phase will be pursued with GoC. The Innovation, Competitiveness and Entrepreneurship IPF envisaged for FY13 was not pursued in favor of the FY15 multi-sector DPL on growth and productivity. The planned follow-up to the Rural Productive Partnerships project, the Small- holder Agriculture Competitiveness Project, was not pursued because GoC decided to continue the productive alliances model using its own resources. 6 II.2 Portfolio Performance and Program Implementation 22. CPS implementation has been managed with a thematic business model approach integrating financial, knowledge and convening services for each engagement area of the CPS. An important innovation has been the use of ‘Programmatic Approaches’ (PAs), a multi-year umbrella that bundles several knowledge tasks across sectors while being aligned with one common objective and reporting against common results. Comprising an overall of about 175 sub-tasks, including convening services and South-South Knowledge Exchanges, the Colombia portfolio included eleven PAs as of end December 2013. Reimbursable Advisory Services (RAS), fully integrated in PAs, have evolved as an increasingly important instrument to provide knowledge services. Annex 7 and 8 provide more details on the knowledge and convening portfolio, respectively. 23. Financial Portfolio. Colombia is currently the 7th largest Bank borrower with US$7.9 billion debt outstanding; IBRD net commitments stood at US$2.1 billion of which US$1.1 billion remained Table 2. IBRD Loans Approved FY12-Q2/FY14, as of December 2013 undisbursed. The active Net Proj. ID Project Name Approved in CPS period work (Net Comm. Amt -US$ portfolio is composed of FY12 FY13 FY14 18 IBRD and 2 GEF P126583 Disaster Risk Mgmt Cat DDO II 250 projects. IFC committed SDN P082520 Sustainable Development Inv Project (AF) 10 P117947 Support Nat'l Urban Transit Program 350* US$975 million in the last P130972 Productive and Sustainable Cities DPL (DPL) 150 two fiscal years, including P123267 Fiscal Sustainability and Growth Resilience (DPLI) 300 PREM P129465 Fiscal Sustainability and Growth Resilience (DPLII) 200 participants. Colombia P145605 Fiscal Capacity and Shared Prosperity DPL 600 represents 2.8% of IFC’s P123879 CO Subnational Institutions Strengthening 70 TOTAL COLOMBIA per FY 660 600 670 total outstanding portfolio. *of which US$58 million were cancelled in FY14. Colombia’s total IFC portfolio exposure as of December 31, 2013 is US$1.46 billion, with 69.2% in loans, 30.5% in equity and 0.3% in guarantee and risk management products (see Annex 11 and 12 for details). Colombia also has a considerable Trust Fund portfolio with US$17.3 million newly committed in RETF over the period FY12-Q2/FY14 in 46 approved grant requests over the same period. Four of these grants are managed by IFC. Annex 4 provides an overview of portfolio development over the CPS period per CPS engagement area and Annex 5 compares the indicatively planned with the actually approved lending program. 24. Portfolio performance. Colombia’s investment portfolio is mature with an average age of 4.8 years. Based on the 18 IBRD and 2 GEF operations under implementation as of April 16, 2014, 18.6 percent of commitment was at risk, representing 20 percent of projects (see Annex 3 for select portfolio indicators). The portfolio at risk is concentrated in four longstanding problem projects with US$400 million in net IBRD commitment (see Box 3). The previously generally low disbursement rate in Colombia is closely associated with delays in the procurement of large contracts in two of these projects. For FY12, the disbursement ratio was only 6.7 percent, while it climbed to 17 percent in FY13. Resolving the four problem projects in the portfolio will increase the FY14 disbursement rate to about 18 percent. The November 2013 CPPR focused specifically on tackling these problem projects and restoring portfolio health and received strong commitment by GoC by agreeing to several actions as described in Box 3. 7 Box 3. Colombia Portfolio at Risk and Remedial Actions to Improve Portfolio Health Rio Bogota Environmental Recuperation and Flood Control Project (P111479, US$250 mil). The project has been under implementation since late 2010. While components on dredging works progressed, the largest investment of US$400 million in a Salitre Wastewater Treatment Plant was significantly delayed. However the lack of a critical institutional coordination mechanism and financing options for the large turn-key contract were successfully addressed so that a return to satisfactory performance is expected by the end of FY14. La Guajira Water & Sanitation Infrastructure and Service Management Project (P096965, US$90 mil). After seven years of implementation the undisbursed balance is 83%, due to significant subnational political instability, culminating in the arrest of the governor. The new Governor-in- charge invigorated project implementation in February 2014. Seven pending contracts, representing a value of US$45 million, have been signed and new institutional arrangements have been put in place. The project status is now encouraging and upgrading is expected. National Macroproyectos Social Interest Program (P110671, US$40 mil). Since loan approval in March 2011, Government priorities have shifted towards fully subsidized housing for low-income beneficiaries, halting project implementation. Less than US$1 million has been disbursed to date and all but US$5 million are expected to be cancelled by the end of FY14. Solid Waste Management Project (P101279, US$20 mil). After approval in 2009, the project progressed very slowly. Once agreement was reached on necessary institutional arrangements and consensus on sub-national subprojects, the loan was extended to June 2015 with a clear action plan on subproject development. Nevertheless, sub-projects face cancellation if contracts are not processed by end-FY14. II.3 Lessons Learned 25. The use of Programmatic Approaches by IBRD and IFC has greatly helped to decrease fragmentation and the ad-hoc nature of knowledge and convening services, while increasing the results orientation for both entities. Annual Progress reports provide a comprehensive account on results achieved by several tasks instead of focusing on singular activities, allowing using knowledge in a much more strategic manner within the country engagement. Internal coordination amongst IFC and WB still has to overcome some hurdles of systems integration and devise a systematic way of information sharing. 26. The portfolio has become increasingly gender-informed, but Colombia lags in the "depth" of gender mainstreaming. While the number of gender-informed projects has significantly increased over the previous CPS from 40% in FY10/11 to 83% in FY12/13, the majority of these gains were from projects that are gender informed in only one dimension (see Annex 13). 27. Lessons from Macroproyectos and the Solid Waste Management Project include the need to better assess the existing legal framework and fiscal space of involved institutions and their commensurability with the project design. Risks arising from these in terms of implementation readiness have to be better identified and taken into account in project design. 28. South-South Knowledge Exchanges are most effective when integrated in programmatic engagements. Lessons include the importance of choosing the right participants for an exchange, ensuring adequate preparation time, linking exchanges to broader development programs in recipient countries, and considering ways to scale-up South-South learning to drive results. 29. Work at the subnational level continues to face weak capacity, local political instability and the risk of operating in conflict-affected areas, significantly impacting project implementation. Projects should only be considered in areas where the security situation allows carrying out appraisal and implementation support missions. Subnational-level IPFs should include thorough risk preparedness measures and implementation arrangements to deal with possible political instability. Implementation readiness is particularly critical, including the identification of appropriate alternate approaches to appraisal and supervision in zones temporarily affected by conflict. Sub-national projects should plan for prolonged preparation and implementation times; DNP and the Bank will coordinate to manage these risks better in the future. 30. Insufficient capacity to manage involuntary resettlement caused implementation delays. To build long-term capacity the Bank has worked with the Universidad de los Andes and three other Latin American universities to design and deliver the first professional and financially self- sustaining course on Involuntary Resettlement in the region. The course has been replicated in 8 Peru and Chile and approximately 120 public and private officials have been trained so far while participants are sharing their knowledge within their own agencies. III. The CPS Going Forward 31. The CPS continues to adequately address the country’s development challenges and continues to be relevant. This has also been confirmed in discussion with key government counterparts. Also the 2013 client survey conducted among 271 stakeholders squarely confirms World Bank’s overall effectiveness in Colombia with a score of 7 out of 10 (see Annex 9). 32. The remaining CPS period will be dedicated to restoring health of the ongoing investment portfolio, while maintaining the historic focus on a larger share of policy-based lending. The election period and settling in of the new administration may slow down the lending program in the second half of FY14 and throughout FY15. In particular commitments on large investment operations may be more difficult to make during this period, while demand for policy- based lending will remain due to existing financing gaps. FY15 foresees US$800 million in policy based lending for the Sustainable Cities II DPL and the Growth and Productivity DPL and a US$10 million GEF operation (Forest Conservation in the Amazon). The Access and Quality of Education IPF is scheduled for FY15, while the ‘Access with Quality to Higher Education II’ Project will be delivered in FY14. Follow-up operations to the National Public Information Systems project, an Additional Financing to the Justice Services Strengthening project and another IPF to facilitate Access to Justice for Victims are being considered. 33. The program for FY16 is less developed and depends on how quickly the new administration will settle in. Government’s financing plan includes the demand for US$2.4 billion in policy-based lending from multilaterals. The WB’s DPL program will take into account priority reform areas under the OECD accession road map to boost productivity, equity and growth as well as a specific Environment DPL. IPFs would focus on the sub-national development agenda in the context of the post-conflict. The knowledge and convening portfolio will continue to be implemented under Programmatic Approaches with a growing share of RAS. A total of 11 PAs are to be delivered over the remainder of the CPS period, all of which have already had their concept reviews (see Annex 7). Table 3. Colombia Indicative IBRD Lending* Program FY14-15 FY Project ID Project Name Net Comm. Amount (US$ mil) FY14 P123879 Sub-National Institutional Strengthening (approved) 70 P145605 Fiscal Capacity and Shared Prosperity DPL (approved) 600 P145782 Access with Quality to Higher Education II-SOP PHASE 2 200 Total FY14 870 FY15 P145353 Access and Quality of Upper Secondary Education 100 P145766 Second Programmatic Productive & Sustainable Cities DPL 400 P149609 Growth and Productivity DPL (cross-sector PREM/ FPD/ HD) 400 P150486 Government-wide Administrative and Financial Management Systems Project 50 tbd Additional Financing: Justice Services Strengthening Project 20 P150474 Facilitating Access to Justice for Victims Project 55 Total FY15 1,025 * Lending amounts are indicative only. Actual delivery of the lending program will depend on Colombia's performance, IBRD lending capacity, demand from other borrowers, global economic developments, and disbursement profiles that keep exposure within the country limits. 34. The results framework has been revised to improve attribution, measurement and to reflect adjustments in the engagement. Outcomes have been streamlined from 9 to 8 and the outcome statements have been revised for better attribution. Of the original 26 indicators, fifteen indicators have been revised, seven have been dropped for improved measurement, attribution and clarity and five indicators have been added mainly to better account for results in areas of deepened engagement. Baselines, Targets and data availability were ascertained for all final 24 indicators. 9 Alignment with the goals of the National Development Plan has been verified. Annex 1B presents the clean, revised results framework, while Annex 1A describes changes to the results framework in detail. III.1 Supporting Peace Consolidation (Engagement Area 1) 35. Building on its longstanding engagement since the late 1990s, support will include increasing coordination with the UN, bilateral donors and other multilaterals as well as a new Multi-Donor Trust Fund and RAS. The Bank is already involved in supporting Colombia on violence prevention, citizen security, reconciliation, land restitution as well as support to the Victim’s unit, including a 14-year engagement through a series of Peace and Development Projects and a currently ongoing Programmatic Approach on Peace Consolidation (see Annex 10 - Engagement Table). Other key projects supporting this area include the Protection of Land and Patrimony of Internally Displaced Persons Project and the Justice Services Strengthening Project. Recently a Korean Trust Fund and a State and Peace Building Fund were approved to generate knowledge and finance rapid ‘demonstration’ interventions at the municipal level and to support community-based programs for collective victims’ reparation and reconciliation. Work in this area will generally focus on interventions that would help address regional and social inequality stemming from decades of conflict, including: land administration, rural development, work with the victims unit, analytical work on the peace dividend and fiscal impact and readiness for peace, reintegration of combatants, violence against women and strategies for at-risk urban youth as well as coordination and consensus building among justice sector agencies. 36. The Bank will deepen its support to addressing issues of conflict and displacement in close cooperation with the Bank's Centre for Conflict Security and Development (CCSD), drawing on lessons from the WDR 2011 and other operational and analytical lessons. The engagement will also continue to rely on high impact interventions and partnerships, such as the MoU with the Mi Sangre Foundation by popular musician Juanes to promote education for peace. Financial support to the peace and post-conflict agenda could pick up significantly over the remainder of the CPS. It is expected that the Bank will take a leading role in this coordination process with other donors and the forthcoming new MDTF would provide an ideal vehicle. Implementation of the comprehensive peace agreement, if reached, as well as continued progress on the post-conflict agenda is expected to be a priority for the next government program. III.2 Supporting Solutions for Productivity, Innovation and Equity (Engagement Area 3) 37. Support to Colombia’s OECD accession has the potential to boost reforms for improved productivity, innovation and equity. Following the approval of the roadmap for Colombia’s OECD accession in 2013, areas for further reforms were identified: Investment, Bribery in International Business Transactions, Corporate Governance, Financial Markets, Insurance & Private Pensions, Competition, Tax, Environment, Chemicals, Public Governance, Regulatory Policy, Statistics, Economics, Education, Employment, Labor & Social Affairs, Health, Trade & Export Credits, Fisheries, Science & Technology, IT & Communications and Consumer Policy. The Bank is supporting the Government on many of these areas already and will deepen support through Programmatic RAS, an innovative solution to provide knowledge services under a framework of support to a variety of agencies. In addition the DPLs under preparation will target priority areas of necessary reforms identified under the OECD assessment. 38. Under engagement area 3, the Bank will continue to facilitate innovative WBG financing solutions especially infrastructure financing utilizing its global knowledge and the WBG balance sheet. Knowledge services for structuring PPPs and leveraging private sector 10 financing will be critical. Following a new PPP law in 2012, GoC is relying on an ambitious PPP program to attract about US$20 billion of mainly private investment into road schemes over six years. Previously, IFC and IBRD have advised on the PPP framework and supported the creation of a new PPP Agency. IFC supported the Fourth Generation of Road Concessions (4G) and was invited by GoC to become a strategic partner in Financiera de Desarrollo Nacional (National Development Bank, FDN) and with a (i) a potential IFC equity investment in an amount of up to US$70 million, and (ii) an advisory facility. IFC has already signed an MOU with FDN to support the development and implementation of PPPs in several sectors at national and subnational levels. MIGA is also considering providing support to PPPs in infrastructure sectors via its traditional Political Risk Insurance (e.g. Breach of Contract for concessions) and is working on a Non- Honoring Financial Obligations guarantee for a commercial loan to FINDETER, a Colombian public development bank that focuses on urban and regional development. The WBG is evaluating options to help mobilizing new sources of capital (i.e. infra, housing bonds) and to leverage private investment exploring the use of the MIGA/IBRD/IFC balance sheets through the “Colombia Deep Dive”. IFC also intends to support the US$150 million MAS Colombia International Private Equity Fund for mid-caps (US$2-10 million market capitalization), targeting strategic sectors and specialized services such as transportation and logistics, oil and gas services, energy generation, communications, water utilities and maritime infrastructures and integrated agribusiness. 39. Support to reforms addressing productivity through expanded programs in the areas of sound financial sector development and innovation will continue. Two joint WB- IFC PAs launched in FY13 will increase support over the next two years. On the financial sector side, the work focuses on support to capital market development to finance, in particular infrastructure and housing needs through regulatory reform and product development. It also supports changes to the regulatory architecture and oversight framework for financial intermediaries with a view to enhance confidence in the system and reforms for financial inclusion. The ‘Innovation PA’ supports reforms, policies and programs to promote technology extension and innovation as well as capacity building both at the federal and state level. A FY15 multi-sector DPL will support reforms to boost productivity, financial sector regulations, deepen capital markets and address human development issues associated with low productivity. III.3 Working as One World Bank Group with IFC and MIGA 40. Development solutions will rely on integrated approaches and combined services across the WBG, including working with the private sector and in partnerships. IFC’s aim in Colombia is to become the partner of choice by building on its comparative advantage in different sectors and building closer relationships with strategic partners to improve the overall value proposition to clients. IFC expects to commit US$115 million in the upcoming months in Colombia, including mobilization, which will comprise investments in sectors such as telecom, oil and gas, health and financial markets. Support will also include financing for energy efficiency and climate change resilience projects, although there are no projects in the pipeline yet. In developing capital markets, IFC seeks to (i) deepen the capital markets within Colombia and increase integration with other markets abroad, and (ii) create a distressed asset market to improve liquidity and banking penetration. Specific IFC targets to be met by end FY16 are included in the revised results framework. MIGA expects to become more involved in financing infrastructure projects, which the government is supporting. Given the large number of projects, which will require long-term financing, MIGA anticipates mobilizing such financing from commercial banks through the provision of Non-Honoring Financial Obligations guarantees of sovereign and sub-sovereign entities as well as state-owned enterprises, like FINDETER. MIGA 11 expects to provide credit enhancement products at the sub-national as well and other state-owned enterprises. Finally, MIGA can also provide guarantees to Colombian private sector investments abroad, and is currently considering one such investment in Central America. IV. Risks 41. The upcoming elections could cause some delays in pipeline preparation due to the necessary transition to the new administration. As in any government transition period, a new government takes time to fully settle and in turn to also familiarize itself with the details of the strategy and program of the WBG. The Bank is managing the risk of possible delays with early dialogue through the Policy Notes to engage with the incoming new administration early on. 42. A halt in peace negotiations could jeopardize the country’s stability and achievements under this strategy. The headway made on peace negotiations sends positive signals that the situation could be further stabilized. A successfully concluded peace process presents a great opportunity in terms of addressing extreme poverty in the country; however there are risks that expectations will be extremely high and may not be seen to be met in a timely manner. In turn, the demand upon the Government to demonstrate a peace dividend may present additional stresses on the fiscal framework. There will also be implementation challenges particularly in outlying areas (outlined in the para below). If there is a halt in peace negotiations then this could seriously jeopardize the country's stability and progress thus far with a potential resumption of organized conflict. Managing this risk is outside the control of the Bank; however, the Bank will stay closely engaged and provide knowledge services including trust funds to help keep the momentum, advise government within its mandate, and keep a flexible approach to react quickly to changes. 43. The Bank program faces inherently more risk when operating in peripheral areas where the larger proportion of the extremely poor reside in order to support the consolidation of peace. Engagement at the subnational level is critical to meet the challenges of post-conflict development in rural areas, including the infrastructure and access-to-service gaps. Risks persist related to the low capacity environment and the expansion of engagement into regions where local governments might be subject to the influence of illegal groups and other non-state actors which can lead to prolonged preparation times and implementation delays in the portfolio. Three considerations will be used to manage these risks: (i) the Subnational Institutions Strengthening project will help to build subnational capacity, reducing associated risks in the medium term; (ii) the Bank will deepen its support to addressing issues of conflict and displacement in close cooperation with the Bank's Centre for Conflict Security and Development (CCSD), drawing on lessons from the WDR Conflict, Security and Development and other operational and analytical lessons and (iii) the Bank will refrain from operating in areas where direct implementation support is not possible due to security concerns. 12 V. Annexes Annex 1A. Changes to the Results Matrix. Original Revised* Engagement Area 1: Expanding Opportunities for Social Prosperity Outcome 1 Enhanced Social Promotion and Improved Citizens Security Improved Coverage and Monitoring of Select Social Services in particular for the Poor Rationale: Consolidated outcome 1 and 3 as they target improvements in similar areas of engagement. An emphasis was added on improvements for the poor, and ethnic and displaced populations. “Improved Citizens Security” was removed. Activities in support of this area are long-term approaches yielding results only after the CPS period. Indicator 1. Better coverage of Unidos program (merger of two key poverty Better coverage of Unidos program (alignment of two key poverty reduction programs). reduction programs). Baseline: 0; Target: 1.5 million Baseline: 0, Target: 1.5 million beneficiary households Rationale: The UNIDOS program is operating aligned with Mas Familias en Accion, but the 2 programs are not and won't be merged. They are operated by different entities. The unit of measurement was also specified. Indicator 2. Increase in the coverage of municipalities that offer active labor Increase in the coverage of municipalities that offer active labor market policies (including market policies to enhance labor productivity and reduce barriers to the Servicio Publico de Empleo Centers). Baseline: 0; Target: 300 new municipalities. employability of the poor. Baseline: 0; Target: 300 new municipalities. Rationale: Improve measurability by removing 'higher level objectives' from indicator. The program name was modified to Enrutate TU Indicator 3. Increase in number of land rights protected of internally displaced Drop from outcome one. persons who abandoned their land due to forced displacement Baseline: 83.450 households (2.525.566 hectares) protected (2008). Target: 219.450 households X hectares (2014) Rationale: Phase I of the project was implemented under the previous CPS from 2003 to end 2011, focused on land protection. After Dec. 31, 2011 (current CPS period), the project shifted to land restitution. The indicator therefore will be revised to measure what is actually supported by operations under the current CPS and will be measured under engagement area 2. Strengthened information systems to monitor service delivery and strengthen accountability in health, education and ECD Baseline: Multiple information systems do not effectively capture productivity and quality of services in health, education and ECD Target: Unified information systems capture productivity and quality of services in health, education and ECD Rationale: This indicator measured progress under outcome number 3 which has been combined with outcome one. -- New indicator: Number of Certified Territorial Entities that have an agreement, program of activities, and include attention to ethnic populations in their Rural Education Plan. Baseline: 0 (2008), 21 (2012); Target: 36 (2015). Rationale: Indicator added to measure progress in education coverage in rural/ post-conflict areas and of ethnic populations. Outcome 2 Improved Opportunities In Education Increased Access to Education for Students from Disadvantaged Households Indicator 1. Enrollment rates (primary and lower secondary; and secondary Revised Baseline. NER PRIMARY: 90%; LOWER SECONDARY 74.9 UPPER education) of students from poor and rural households (31 poorest territorial SECONDARY 46.6. entities, including 17 departments and 13 municipalities). Baseline: NER primary and lower secondary: 90.21%; NER upper secondary: 30.84%. Target: NER Revised Target 2016: NET PRIMARY: 93%; LOWER SECONDARY 78% UPPER primary and lower secondary: 94%; NER upper secondary: 35%. SECONDARY 50%. Rationale: The decrease in the coverage rates is due to data cleaning done during the registration census audit in 2012, revealing close to 460,000 ghost students. This is due to the incentive of transfer per capita (‘nino atendido’/ attending child). AS a result, the baseline and target needed to be updated based on clean statistics. Indicator 2. Increase in tertiary education enrollment of students from poor Percentage of students enrolled in first year tertiary education (whose income is below households. Baseline: 75,000; Target: 150,000 twice the minimum salary) and number of women benefitting from ACCESS loans. Baseline 2010: 49.7% ; Actual Dec 2012: 58.1%; Women with ACCESS: 112,860 (2012). Target 2016: 63%; Women with ACCESS: 130,000 (2016) Rationale: Revised unit of measurement and wording to match indicator in corresponding operation. Revised target upwards. [Outcome Improved Performance of Social Services Integrated with Outcome 1. 3] Rationale: See comment above. The indicators remain relevant and will be used to measure the revised Outcome 1 Engagement Area 2: Sustainable Growth with Enhanced Climate Change Resilience Outcome 3 Improved Sustainable Urban Development Improved Access to Sustainable Urban Services in Transport, Housing and Water. Indicator 1. Increased population benefitting from improved transportation Combined into one indicator with two breakdown categories. services in large cities; Baseline: 460,000 (2011). Target: 1,800,000 (2014). Large cities: Updated baseline to include Transmilenio Bogota: 1.740.000. Indicator 2. Increased population benefitting from improved transportation updated Target to 2,100,000 (2014) services in medium-sized cities. Baseline: 0 (2011); Target: 150,000 (2014). Medium-sized cities: Revise target year to 2016, Rationale: The program targeting medium-sized cities started only in 2014. Indicator 3. Improved institutional capacity of the central Government to plan and Dropped deliver transportation services. Baseline: n/a (2011); Target: Improved (2014). Rationale: This indicator is a process indicator and hard to measure; it is being tracked at project level; results are being measured with other indicators under this outcome. -- New indicator: Number of new affordable homes constructed enabled by IFC support and Number of low income families with access to affordable and safe housing solutions as a result of the new housing sheme for voluntary savings (VIPA). Baseline 2012: 0. Target end 2015: (i) 2,500 affordable new homes (IFC), (ii) 86,000 families (through VIPA) Rationale: This indicator measures the revised approach to support low income housing by the Bank and IFC. -- New indicator: Number of (add’l) people benefitting from improved access to water, 13 sewerage services, and electricity in Medellin & surrounding areas. Baseline 2012: 0. Target 2015: 1.85 mill people benefitting fr. improved services and 450,000 new customers. Rationale: Added to measure IFC supported investment to EPM (Empresas Públicas de Medellín). Outcome 4 Enhanced Disaster Risk Management Enhanced Capacity for Disaster Risk Management Rationale: Reworded for improved specificity and combined with outcome 3 on climate change since both targeted similar areas. The indicators remain relevant and will be used to measure the revised Outcome 2 Indicator 1. Strengthened technical capacity for disaster risk management at Replaced with: Number of new financial instruments to mitigate natural disaster risks that national and regional levels have been implemented. Revised Baseline: insufficient capacity’ (2011) Baseline (2012): 0 Target: Improved (2016) Target (2016): 3 Rationale: While progress has been verified, the indicator was dropped due to lack of appropriate measurement. The revised indicator measures specifically the country’s capacity for financial disaster risk management. -- Government has developed a national policy for climate change and a national low-carbon growth strategy. Baseline: No (2011). Target: Yes (2016) Rationale: Moved this indicator from originally outcome 3 under this engagement area since it fits under the same thematic area. Outcome 5 Improved Environmental Management and Climate Change Resilience More sustainable and productive use of targeted rural areas. Rationale: Rephrased this outcome to focus on environmental aspects and rural development to account for critical results under the CPS from Biodiversity protection and rural productive alliances project as well as land restitution efforts. Rural development, under the post-conflict agenda, is also an area of deepening. Indicator 2. Government has mainstreamed improved environmental practices in Area newly brought under environmentally-friendly cattle ranching production (silvopastoral the agricultural sector through a scaling up of silvopastoral livestock systems. livestock) systems. Baseline: 0 ha (2011); Targets: 50,500 ha (2016). Baseline: 0 ha (2011). Targets: 50,500 ha (2016). Rationale: Outcome revised for more specificity. Revised target value to reflect project restructuring and Additional financing. Wording has been improved for better measurability. This indicator was originally included under outcome 6, Engagement Area 3. -- Number of land restitution claims of internally displaced persons processed who abandoned their land due to forced displacement. Baseline: 0 in 2012. Target: increased number by end 2014. Rationale: Moved from outcome 1. Land restitution in post-conflict areas is a necessary step in restoring productive use of rural areas. The final result will also measure the number by women. No target can be set as this is a demand-driven process. -- (i) Number of families that continue adopting sustainable production and management systems in conservation mosaics and (ii) number of hectares of core conservation area brought under improved management systems in the Amazon Basin. Baseline 2012: 0 Target 2014: 300 (Achieved: 346 families in Dec 2013) and 2.6 million hectares of core conservation areas and 57% of the surrounding territories have been brought under improved management systems in the Amazon Basin. Rationale: This indicator measures critical results in terms of protected areas and productive use thereof. -- Number of additional families benefitting from high value agricultural value chains Baseline: 0 (2010) Target: 41,245 families from 498 new partnerships achieved in Dec 2013. Rationale: The Productive Partnerships project supports poor rural households in building alliances with the private sector to boost value chains and in turn productivity in rural areas. Engagement Area 3: Inclusive Growth with Enhanced Productivity Outcome 6 Improved Fiscal, Financial and Social Risk Management Improved Instruments for Fiscal and Financial Market Risk Management Rationale: Removed Social Risk Management to reflect that the social aspect is an aspect of fiscal and financial risk management, but will not be measured separately. Indicator 1. The Central Government meets the structural fiscal deficit target for Central Government fiscal deficit 2014. 2014 (2.3% of GDP or less). Baseline 2010: 3.9% of GDP. Target 2014: 2.3% of GDP or less (achieved) Rationale: Specified language for improved attribution. This indicator has been achieved and is directly related to the Fiscal DPL series. Indicator 2. Financial instruments to mitigate natural disaster risks have been Revised and moved to outcome 5 under engagement area 2 implemented by 2013. Rationale: Specified language for improved clarity; specified baseline and target, but better used to measure outcome on disaster risk management. -- Strengthened capital markets oversight and institutions with at least 3 recommendations/ policies/ practices/ procedures of the revised regulatory framework implemented. Baseline 2013: 0; Target 2016: 3. Rationale: Indicator supported by Financial Sector PA. Improved Financial Market Oversight is an important factor to manage Financial Market Risk Management. Outcome 7 Improved Public Sector Management and Equity and Efficiency of Economic Improved Public Expenditure and Poverty Monitoring Systems. Indicator 1. Enhanced public sector efficiency and transparency by strengthening Public Management Information Systems provides on time, reliable and consistent and expanding the individual management information systems that are the information on budget and investment execution. Baseline 2011: does not provide. building blocks of an integrated, performance-informed management model. Target: does provide by 2015. Rationale: Removed higher level objectives from this indicator for better measurability and clarity. Indicator 2. Management capacities at sub-national level of governments are The Subnational Government’s integrated financial control model has been designed and improved and have a positive impact in the quality of expenditures and the approved by Ministry of Finance and Ministry of Planning. Baseline 2013: no integrated provision of services. model. Target 2016: designed and approved. Rationale: Revised to reflect delay in Subnational Strengthening Project. The indicator measures progress in strengthening control and monitoring of territorial management. Indicator 3. Improved quality and accessibility of the evidence base for decision Endorsement of annual release of monetary and multidimensional poverty indicators and 14 making and particularly for policies and programs related to poverty reduction. its corresponding micro data by the Monetary Poverty Expert Committee and the Multidimensional Expert Committee. Rationale: Improved means of verification for the revised indicator. Indicator 4. Improvement in the movement of cargo in and out of Colombia by Dropped. enhancing automation through the VUCE system and improved handling of cargo at ports through risk based policy and procedures. Baseline: 24 days for imports and 23 days for imports. Target for 2014: 10 days to import and 9 days to export. Rationale: Progress under this indicator has been recorded under the assessment in this progress report. Going forward this indicator is discontinued. Outcome 8 Improved Productivity and Innovation Improved Instruments to Mobilize Capital Rationale: Revised language to reflect better attribution to interventions. Indicator 1. Strengthened capacity of COLCIENCIAS to promote human capital for Dropped. knowledge economy, research and development, and innovation. Number of journal articles by Colombian researchers in SCI expanded per million population. Baseline (2009): 48.0; Target (2014): 58.5 Rationale: Indicator dropped to reflect project restructuring. Indicator 2. Raised awareness of science, technology and innovation in the Dropped. Colombian society. Rationale: Indicator was dropped at project restructuring. Indicator 3. Improved regulations for business and property registration, and Dropped reform the legislation for secured transactions and the collateral registry. Efficiency of starting a business. Baseline: 9 procedures, 14 days. Target (2014): 4 procedures, 6 days. Rationale: There are no activities in direct support of regulations for business and property registration, beyond dissemination of good practice (measured by the milestone). IFC supported improvements in construction permit procedures; results are accounted in table ‘achievements to date’. Indicator 4. Higher financial inclusion measured by increased percentage of the 1) New financial products for low-income population and SMEs launched population with a deposit account. Baseline: 1,295 accounts per 1,000 adults Baseline 2012: 0; Target 2016: at least 2. (2010). Target: 1,400 accounts per 1,000 adults (2014). Rationale: Increase in deposit accounts not relevant for the program, there are no supporting activities, also target must be wrong. Instead, a relevant indicator, linked to interventions in the financial sector program was included. Indicator reflects deepened advisory support to Financial Market Development. -- 1) Number of new instruments for infrastructure finance launched in the market (InfraBond, InfraFund, etc.).Baseline: 0 (2013); Target: 2 (mid-2016). 2) Volume of client MSME loans outstanding supported by IFC. Baseline: US$1.7 billion in 2012; Target US$16 billion in 2016 Rationale: 1) measures Joint WBG effort to advise on new financial instruments for infrastructure finance. 2) IFC indicator added measuring support to SME credit expansion. * Country Development Goals (from NDP) were verified and adjusted as needed throughout the Results Framework 15 Annex 1B. CPS FY12-16 REVISED RESULTS MATRIX NDP Development Goals CPS Outcomes Outcome Indicators WBG Program (and Partners)* Engagement Area I: Expanding Opportunities for Social Prosperity Consolidate and complement the Outcome 1: Improved Coverage and 1. Better coverage of Unidos program (alignment of two key Financial Services supply of services and social Monitoring of select Social Services in poverty reduction programs) Second Phase of the Expansion of the Program of Conditional Transfers-Familias programs around Unidos particular for the Poor Baseline: 0 en Acción Project – Social Safety Net II(P101211) CLOSED Target: 1.5 million beneficiary households Social Safety Net III AF (P104507) CLOSED Institutionalize labor markets Rural Education Project (P082908) 2. Increase in the coverage of municipalities that offer active Antioquia Upper Secondary Education Project (P052608) labor market policies (including Servicio Publico de Empleo Growth and Productivity DPL (PREM/FPD/Social) FY15 – Pipeline Centers) Knowledge Services Baseline: 0 PKS Effective Social Protection II (P123158) CLOSED Target: 300 new municipalities. PKS on Social Inclusion III (P129859) PKS Improved Performance of Social Services (P123301) CLOSED 3. Strengthened information systems to monitor service delivery PA Improving Performance of Social Services (P145684) and strengthen accountability in health, education and ECD Youth Reintegration Project (Colegio del Cuerpo (TF057249) CLOSED Baseline: Multiple information systems do not effectively capture Labor Inclusion Model for Intellectually Challenged Youth (GFYI, TF010110) productivity and quality of services in health, education and ECD Youth Initiative - Audiovisual Materials Project (GFYI, TF010108) Target: Unified information systems capture productivity and Avian Influenza (TF 098473) CLOSED quality of services in health, education and ECD Financial Capabilities and Education Measurement (FLIT, TF097524) CLOSED Implementing the Right to Health (NTF, TF096788) CLOSED 4. Number of Certified Territorial Entities that have an Governance, transparency, accountability in education (IDF, P125541) agreement, program of activities, and include attention to ethnic populations in their Rural Education Plan. Convening Services Baseline: 0 (2008), 21 (2012) Beyond the Transfers: Building Capacity through KE on CCT Programs in LAC Target: 36 (2015) Gov. Indonesia Study Tour– Social Assistance Programs and Systems FY12 Roundtable on Conflict, Security and Development Cali International Conference on Crime and Violence Prevention Support for South-South Dissemination on DDR (WBI initiative) Study tour to Israel on risk adjustment and related health policies Pakistan study tour on CCT programs in Mexico and Colombia IFC (Investment) Fundacion Cardiovascular Hospital, Bucaramanga, serving low-income populations Pipeline: Medellin PMLA- Promotora Medica Las Americas Hospital Enhance the quality of education Outcome 2: Increased Access to 1. Enrollment rates of students from poor and rural households Financial Services and the development of Education for Students from (31 poorest territorial entities, including 17 departments and 13 Rural Education Project (P082908) competencies Disadvantaged Households municipalities). Antioquia Upper Secondary Education Project (P052608) Baseline (updated): Access with Quality to Higher Education II-SOP PHASE 2 (P105164) CLOSED NER PRIMARY: 90% Access & Quality of Upper Secondary Education (FY15) -(P145353) - Pipeline LOWER SECONDARY 74.9 UPPER SECONDARY 46.6 Access with Quality to Higher Education II- (P145782) Target 2016: Risk Management: NET PRIMARY: 93% Local currency financing for ICETEX, Antioquia LOWER SECONDARY 78% UPPER SECONDARY 50% Knowledge Services PKS Improved Opportunities in Education (P123144, P132235) CLOSED 2. Percentage of students enrolled in first year tertiary PKS Education Quality Report (ICFES)-(P106710) CLOSED education (whose income is below twice the minimum salary) Convening Services and number of women benefitting from ACCESS loans. High-ranking Peruvian officials to learn from Escuela Nueva Model Baseline 2010: 49.7% ; SSKE on Improved ECD Action Plans in La Paz and El Alto Actual Dec 2012: 58.1%; Women with ACCESS: 112,860 (2012) Vietnam MOET Study Tour to Caldas, Colombia 16 Target 2016: 63%; Women with ACCESS: 130,000 (2016) IFC (Investment) Ongoing and potential new projects in technical and vocational adult education piloting financial literacy programs. Engagement Area II: Sustainable Growth with Enhanced Climate Change Resilience Implement integral mobility and Outcome 3: Improved Access to 1. Increased population benefitting from improved transportation Financial Services urban development policies Sustainable Urban Services in services. La Guajira Water and Sanitation Proj (P096965) around the promotion of Transport, Housing and Water (a) in large cities: Bogota Urban Services AF (P074726) financially and environmentally Baseline: 1,740,000 (2011) Solid Waste Mgmt Project (P101279) sustainable mass public Target: 2,100,000 (2014) Macroproyectos Project (P110671) transportation solutions Actual 2014: Achieved 2,269.000 (June 2013) Integrated Mass Transit Systems (P082466 / P114325) CLOSED (b) medium-sized cities: Rio Bogota Project (P111479) Incorporate sustainability Baseline: 0 (2011) Productive and Sustainable Cities DPL CLOSED parameters in urban Target (mid 2016): 150,000 National Urban Transport (P117947) development through programs Productive and Sustainable Cities DPL II (FY15) - Pipeline of urban renovation and efficient 2. Number of new affordable homes constructed enabled by IFC Knowledge Services, incl. joint WB-IFC urban mobility systems support and Number of low income families with access to Sustainable, Productive and Inclusive Cities PA (P143513) affordable and safe housing solutions as a result of the new strategic Basin Planning for the Rio Bogota (WPP, TF095149) CLOSED housing scheme for voluntary savings (VIPA) Experience of Specialized Water Operators in Colombia (SFLAC TF098814) Baseline 2012: 0 Rio Bogota Environmental (SFLAC, TF097840) Target end 2015: (i) 2,500 affordable new homes (IFC), (ii) Cali Smart Cities 86,000 families (through VIPA) Convening Services BRT Study Tour - Da Nang Sustainable City Development Project 3. Number of people benefitting from improved access to water, China Study Tour to Colombia – Innovative Urban Planning Solutions sewerage services, and electricity in Medellin and its IFC (Investment) surrounding areas. Triada LIH – Low-income housing Baseline 2012: 0 Recaudo Bogota- electronic payment system for urban bus transport Target 2015: 1.85 million people benefitting from improved EPM- water services services and 450,000 new customers. Green building projects (hotels, housing) PPP structuring: FONADE-IFC MoU; Colombian Roads project; Concession structuring "Ruta del Sol"; Transportation/Telecom projects from currently 10 to 16 IFC Advisory: Green building codes, energy efficiency, cleaner production Outcome 4: Enhanced Capacity for 1. Number of new financial instruments to mitigate natural Financial services Implement good governance Disaster Risk Management disaster risks that have been implemented. Fiscal Sustainability and Growth Resilience DPL series (FY12-13) CLOSED models to strengthen the Baseline (2012): 0 APL1 Disaster Vulnerability Proj.(P082429) CLOSED institutionalization of SNPAD Target (2014): 3 (achieved) APL2 Disaster Vulnerability Proj.(P085727) (Sistema Nacional para la CAT DDO (P113084) CLOSED Prevención y Atención de 2. National Policy for Disaster Risk Management formulated. CAT DDO II (P126583) Desastres) Baseline: No (2011) Risk Management: Target: Yes (2016) Blending model for structuring IBRD financial package Reduce vulnerability, prepare Loan customization for CAR (use of local currency) Colombia for climate change 3. Government has developed a national policy for climate Full menu of IBRD CAT risk financing, weather derivative and/or Cat-Bond adaptation, and leverage change and a national low-carbon growth strategy. Knowledge Services opportunities derived from Baseline: No (2011) Consolidating Disaster Risk Management PA (P145500) international carbon markets Target: Yes (2016) Risk Modeling Bogota (GFDRR , TF091242, Recipient) CLOSED Flood Protection in Barranquilla (SFLAC, TF096784) CLOSED Barranquilla- integrated urban flood prevention (GFDRR, TF096323/4) CLOSED Strengthening crisis preparedness framework (FIRST, TF095378) CLOSED Disaster Risk Management Analysis (CCDRMA) (GFDRR TF098966) CLOSED FCPF REDD Readiness Trust Fund, CLOSED. Convening Services SSKE on use of CCTs to address natural disasters (with CIDE Mexico) Pipeline: SSKE: DRM incorporation into Territorial Planning: Honduras/ Colombia 17 Strengthen the protection and Outcome 5: More Sustainable and 1. Area newly brought under environmentally-friendly cattle Financial Services restoration of biodiversity and its Productive Use of Targeted Rural Areas ranching production (silvopastoral livestock) systems Sustainable Dev. Proj. + AF (P082520) ecosystem services Baseline: 0 ha (2011) Agricultural Transition (P082167) CLOSED Target: 50,500 ha (2016) Rural Productive Partnerships II Project (P104567) Promote linkages and value Facilitating Access to Justice for Victims Project (pipeline) addition in agricultural 2. (i) Number of families that continue adopting sustainable Grants: production, forestry and fishery production and management systems in conservation mosaics Mainstreaming Cattle Ranching GEF +AF (P104687) and Protected Areas GEF(TF094084, TF056351) CLOSED Articulate social and economic (ii) number of hectares of core conservation area brought under GEF Protected Areas AF (P091932) resettlement policies for victims improved management systems in the Amazon Basin. National Adaptation Plan (P083075) CLOSED of forced displacement due to Baseline 2012: 0 Rio Amoya CF (TF053534) CLOSED violence (PVDFV) Target 2014: 300 (Achieved: 346 families in Dec 2013) and 2.6 San Nicolas Carbon Sink CF (TF056577) CLOSED million hectares of core conservation areas and 57% of the Forest Conservation in the Amazon (P144271) – Pipeline surrounding territories have been brought under improved Inst. Community Strengthening for Local Governance (JSDF, TF091174) management systems in the Amazon Basin. Peace and Development AF (P051306) CLOSED TF Gender and IDPs (GENTF, TF095198) CLOSED 3. Number of additional families benefitting from high value Protection of Land and Patrimony of IDPs Phase 3 (SPBF, TF094596) agricultural value chains Knowledge Services Baseline: 0 (2010) PA Environmental/ Mining Knowledge Services (P143933) Target: 41,245 families from 498 new partnerships achieved in PA Strengthening Environmental and Natural Res. Institution (P123864) CLOSED Dec 2013. Integrated National Adaptation Plan (INAP) GEF (TF054614) Netherlands Conservation Incentives Grant (TF094084) 4. Number of land restitution claims of internally displaced FCPF REDD Readiness (TF097224/P120899) CLOSED persons processed who abandoned their land due to forced Agriculture Commodity Exchange RAS P130560 CLOSED displacement PA Peace Consolidation (P144491) Baseline: 0 in 2012 Human Rights-Basic Social Services in Peace and Dev. Zones (NTF, TF096627) Actual: 12,217 restitution claims processed for 482,272 hectares CLOSED by Nov 2013. As of end February 2014, 39% of the persons MDTF Peace and Post-Conflict requesting restitution are women. Convening Services Target: increased number by end 2014 FCPF Regional Workshop on "Social Inclusion in REDD+ Readiness” Green Growth Policies Workshop Workshop on Evaluation approaches for Productive Alliance projects FY12 Roundtable on Conflict, Security and Development Cali International Conference on Crime and Violence Prevention IFC (Investment) FDN equity and Advisory Facility - Pipeline Oil, Gas and Mining Sector projects: early mining exploration in Western Colombia (El Dovio); Greenfield LNG development – Pipeline Transformation projects in agriculture (cocoa, dairy, soy and sugar); Foresty IFC (Advisory) Extractive Industries Adv. Services: EcoOro Extractive Res.Industry; Royalty Management; Royalty Monitoring; Engagement Area III: Inclusive Growth with Enhanced Productivity Establish a Fiscal Rule as a Outcome 6: Improved Instruments for 1. Central Government fiscal deficit 2014. Financial Services policy instrument to consolidate Fiscal and Financial Market Risk Baseline 2010: 3.9% of GDP Fiscal Sustainability and Growth Resilience DPL series (FY12-13) CLOSED fiscal discipline and Management Target 2014: 2.3% of GDP or less (achieved) Enhancing Fiscal Capacity to Promote Shared Prosperity DPL (P145605) macroeconomic stability Knowledge Services 2. Number of institutions in the capital market with at least 3 PA Sound Financial Sector Development (P133789) recommendations/ policies/ practices/ procedures of the revised National Level Public Finance Study (P106916) CLOSED regulatory framework implemented. TA to improve the monitoring of social impact of the crisis CLOSED Baseline 2014: 0 Institutional Mineral Rights Cadastre Reform (SFLAC) Target 2016: 3 Banking ROSC CLOSED 18 Government Debt and Risk Mgmt TA (P129819) Fiscal Policy for Sustained and Inclusive Growth PA IP133307) - Pipeline Convening Services Philippine Delegation to Mexico and Colombia on Fiscal Risk Management IFC (Advisory) Extractive Industries Royalty Management; Royalty Monitoring; Revenue management advisory services in mining (municipalities) Deepening Colombia’s capital markets in key sectors (regulatory and institutional reforms, transaction support activities) (IFC00578507-TF098321 ESMID) Promote efficiency in Outcome 7: Improved Public 1. Public Management Information Systems provides on time, Financial Services implementing resources from the Expenditure and Poverty Monitoring reliable and consistent information on budget and investment Lending: national budget Systems. execution. Consolidation of National Public Management Information Systems Project Baseline 2011: does not provide (P106628) Target: does provide by 2015. Government-wide Administrative and Financial Management Systems Project (pipeline) 2. The Subnational Government’s integrated financial control Strengthening Justice Services (P083904) model has been designed and approved by Ministry of Finance AF Justice Services Strengthening Project (pipeline) and Ministry of Planning. Facilitating Access to Justice for Victims Project (pipeline) Baseline 2013: no integrated model Strengthening Public Information, Monitoring, Evaluation for Results Management Target 2016: designed and approved. SIL(P099139) Sub-National Institutional Strengthening (P123879) 3. Endorsement of annual release of monetary and Lending Pipeline: multidimensional poverty indicators and its corresponding micro Growth and Productivity DPL (PREM/FPD/Social) FY15 data by the Monetary Poverty Expert Committee and the Multi-Sector DPL (FY16) Multidimensional Expert Committee. Knowledge Services PA Poverty and Equity (P133763) PA for Public Sector in Colombia (P143384) Legal claims mgmt system (IDF, TF058311) CLOSED Expanded subnational rapid assessments of PSM Decentralization Study (P101308) CLOSED Strengthening Procurement System (TF092702) CLOSED Procurement Law Reform Implementation (IDF, TF092702/P109841) CLOSED Advisory work on accounting and financial reporting standards CLOSED Pipeline: OECD Agenda Programmatic RAS Convening Services SSKE: Participation in expert committee on poverty measurement Monitoring and Evaluation Networks for Evidence-Based - Decision Making SSKE: Improving performance of subnational governments- pipeline IFC (Advisory) Doing Business in Colombia Round 3 and Trade Logistics NatPlan Colombia Project (Municipal construction permits) Trade Logistics Program Extend the access to and use of Outcome 8: Enhanced Instruments to 1. New financial products for low-income population and SMEs Financial Services formal financial services Mobilize Capital launched Lending: Baseline 2012: 0 Science, Technology, and Innovation (P117590) Establish a vision and an integral Target 2016: at least 2 Finance and Private Sector Development (P116088) – CLOSED policy for capital markets as a Lending – Pipeline: driver of the productive sector. 2. Number of new instruments for infrastructure finance Growth and Productivity DPL (PREM/FPD/Social) FY15 launched in the market (InfraBond, InfraFund, etc.). Knowledge services, incl. combined WBG Baseline: 0 in 2013 Colombia Deep Dive – IFC-WB Target: 2 by mid-2016 Sound Financial Sector Development PA (P133789) joint WB-IFC Innovation and Competitiveness PA (P144510) 19 3. Volume of client MSME loans outstanding supported by IFC Cooperation agreement on Investment Climate: Regional Doing Business Reform interventions. Advisory project (P131158) Baseline: US$1.7 billion in 2012 Innovation, Productivity and Entrepreneurship (TF096995) CLOSED Target US$16 billion in 2016 Financial capabilities Assessment (P122698) CLOSED Actual end 2013: US$13.5 billion Diagnostic Facility for Shared Growth, (TF096995) CLOSED Support for the Reorganization of INCO (PPIAF, TF099124) CLOSED Pipeline: OECD Agenda Programmatic RAS Banco AVVillas and its partner DDDedo (an airtime distribution network) for a mobile low-cost savings account for low-income population (CGAP). Convening Services SSKE Strengthening Bolivia’s National Science, Technology and Innovation System IFC (Investment) FDN investment for infrastructure finance Avantel 4G LTE (equity investment) Virgin Mobile Colombia (VMCO) Pacific Infrastructure-Liquid terminal Cartagena (equity/assent mgnt) PetroNova (equity investment) GFO (Grupo factoring de Occidente)-loan Tier 2 insurance companies and mobile banking Credivalores-credit to low income segment MAS Colombia International Private Equity Fund - Pipeline Quimbaya- Infra and SME equity and south-south expansion IFC (Advisory) Royalty management advisory services for Innovation at regional level SME factoring (primarily with grants) Gender and microfinance sector support DARP Program (Distressed Assets Relief Program Grupo Sura Pension Fund (equity, structuring) Banco Davivienda-SME Finance (Adv. Services) Bancamia a Micro-Finance Financial Service (MFS) project (Adv. Services) Infrastructure advisory, PPP structuring for highways, ports Innovative mobile financial services for underserved low income individuals * Subtasks of Programmatic Approaches are not separately listed. 20 Annex 2. Progress towards CPS outcomes as of December 31, 2013. Indicators & Milestones Actual Progress Comments WBG Program Engagement Area I: Expanding Opportunities for Social Prosperity Outcome 1: Enhanced Social Promotion and Improved Citizens Security Indicator 1. Better coverage of Unidos program 1.43 million ON TRACK The UNIDOS program is operating aligned with Mas Familias en Accion, but Financial Services (merger of two key poverty reduction programs) households. the 2 programs are not and won't be merged. The indicator will be revised. Second Phase of the Expansion of the Program of Baseline: 0; Target: 1.5 million The failure to merge databases results from three factors. On the institutional Conditional Transfers-Familias en Acción Project – side, Familas and UNIDOS are organizationally next to each other, so one is Social Safety Net II(P101211) CLOSED not the “rector” over the other. The fact that UNIDOS, the coordinating body, Social Safety Net III AF (P104507) CLOSED Milestone 1. Merger of CCT (Familias en Accion) and Programs fully ACHIEVED is not institutionally above the institutions it should be coordinating is a Productivity DPL (PREM/FPD/Social) FY15 - Pipeline social promotion strategy (Juntos) into a single aligned problem and will be addressed in the Policy Notes. On a technical front, the Grants: program (Unidos) databases are on distinct platforms, contain program specific information that Inst. Community Strengthening for Local Governance Baseline: Programs operate separately is interesting to one but not the other, and cover different populations so a (JSDF, TF091174) Target: Programs merged single registry relevant for both institutions is not relevant. Other factors Peace and Development AF (P051306) CLOSED include history, where the original plan (circa 2006) was that Familias Knowledge Services beneficiaries would receive their benefits through UNIDOS, thus justifying a PKS Effective Social Protection II (P123158) single info system, was discarded as Familias became very politically strong CLOSED and UNIDOS never gained the legitimacy it needed to be the lead Social PKS on Social Inclusion III (P129859) Protection agency. No negative impacts for either program are expected due PA Peace Consolidation (P144491) to the change in approach. The two programs are crossing their databases, PKS Improved Performance of Social Services so the beneficiary targeting that would have happened through a merged (P123301) CLOSED database is still happening, but through a different mechanism. All UNIDOS PA Improving Performance of Social Services clients (since they are a coordinating agency, not a service provider) who are (P145684) eligible for Familias but not receiving them, have been noted by the UNIDOS TF Gender and IDPs (GENTF, TF095198) CLOSED program and are being proactively targeted by the UNIDOS staff. Protection of Land and Patrimony of IDPs Phase 3 Indicator 2. Increase in the coverage of municipalities Enrutate is operating ON TRACK The indicator will be revised to “Increase in the coverage of municipalities (SPBF, TF094596) that offer active labor market policies to enhance in 43 municipalities that offer active labor market policies (including Servicio Publico de Empleo Youth Reintegration Project (Colegio del Cuerpo labor productivity and reduce barriers to the and the Servicio Centers).” The Program name was modified to Enrutate TU. (TF057249) CLOSED employability of the poor Publico de Empleo Labor Inclusion Model for Intellectually Challenged Baseline: 0 in 12 municipalities. Youth (GFYI, TF010110) Target: 300 new municipalities Youth Initiative - Audiovisual Materials Project (GFYI, Milestone 2. Design and implementation of the Model is finalized, ACHIEVED TF010108) program Trabajemos Unidos, to provide active labor and implementation Human Rights-Basic Social Services in Peace and market policies for the poor. has started in Dev. Zones (NTF, TF096627) CLOSED Baseline: 0 selected localities. MDTF Peace and Post-Conflict Target: Program created and implemented at pilot or 65.567 beneficiaries Avian Influenza (TF 098473) CLOSED national scale in urban areas of 43 municipalities Financial Capabilities and Education Measurement Indicator 3. Increase in number of land rights 173,756 people's ON TRACK After Dec. 31, 2011 (CPS period), the shift of the project was to land (FLIT, TF097524) CLOSED protected of internally displaced persons who rights protected in restitution, a more complex process – the indicator will be revised to measure Implementing the Right to Health (NTF, TF096788) abandoned their land due to forced displacement the period 2003- activities supported under this CPS period. Phase I of the project from 2003 CLOSED Baseline: 83.450 households (2.525.566 hectares) 2011. Equivalent to to end 2011 was focused on land protection. The final number for that stage Governance, transparency, accountability in protected (2008) 4.75m hectares is 173,756 persons’ land rights protected (hectares for up to end 2010 are education (IDF, P125541) Target: 219.450 households X hectares (2014) 4,750,186). Convening Services Beyond the Transfers: Building Capacity through KE Phase III of the State and Peace Building Trust Funded support for land on CCT Programs in LAC protection culminated in the passage of the 2011 Victims and Restitution Law Gov. Indonesia Study Tour– Social Assistance facilitating restitution of land to IDPs for the first time in Colombia. Therefore Programs and Systems the Bank shifted the focus of its financial and technical support from land Dominican Republic Health Insurance Mechanisms protection to land restitution. The new Land Restitution Unit (URT) was Study Tour to Colombia established in 2012 to implement the restitution program and to date, under 21 the CPS period, more than 12,000 restitution claims have entered the FY12 Roundtable on Conflict, Security and administrative process, representing 482,272 hectares of land. Of these, Development nearly 2,000 claims have completed the administrative process and are in Cali International Conference on Crime and Violence the judicial process. The Restitution Unit has special procedures for Prevention indigenous and Afro-Colombian groups and for women and orphaned Support for South-South Dissemination on DDR (WBI minors, targeting populations particularly vulnerable to extreme poverty and a initiative) lack of participation opportunities in shared prosperity. The Bank and Study tour to Israel on risk adjustment and related government also collaborated on a Land Governance Assessment in 2013, health policies providing further analysis of the strengths, weaknesses, overlaps and gaps in Pakistan study tour on CCT programs in Mexico and land governance in Colombia. Building on this constructive engagement with Colombia the government, the Bank has broadened the discussion on land—a critical IFC (Investment) issue for the peace transition, rural development, agriculture, natural Possible direct lending to and/or equity investment in resource management and resource extraction. microfinance institutions Low-income housing finance Gender in the Peace and Development Project: The project strengthened Fundacion Cardiovascular Hospital, Bucaramanga, gender equality through 1) greater engagement of women in the productive serving low-income populations. and food security subprojects; 2) increased and improved citizen participation Pipeline: Medellin PMLA- Promotora Medica Las of women, 3) strengthened networks and movement of female victims of Americas Hospital serving low-income populations violence; and provided 4) training on sexual and reproductive rights, and 5) psycho-social support in cases of domestic and sexual violence. The report IFC (Advisory) Innovative mobile financial services for underserved concluded that a gender focus is central to projects that are implemented in low income individuals situations of armed conflict because of the differentiated impact and needs by women, children, older adults and youth. The ICR states that 50% of the project’s beneficiaries were women–-displaced and heads of households (40%). 10% were young people, participating mainly in social, cultural and environmental subprojects. Outcome 2: Improved Opportunities In Education Indicator 1. Increase in enrollment rates (primary and NER PRIMARY: ON TRACK The net enrollment rate for upper secondary has improved to 46.6 percent Financial Services lower secondary; and secondary education) of 90% over the CPS baseline of 30.84 percent. The corresponding net enrollment Rural education project (APL II) (P082908) students from poor and rural households (31 poorest LOWER rates for primary and lower secondary currently stand at 90 percent and 74.9 Antioquia upper secondary education project territorial entities, including 17 departments and 13 SECONDARY 74.9 percent, respectively. The latter two values cannot be compared to the CPS (P052608) municipalities). UPPER baseline due to the results of the national registration census which revealed Second student loan project (APL II) (P105164) Baseline: SECONDARY 46.6 that a significant number of ‘ghost students’ inflated previous enrollment CLOSED NER primary and lower secondary: 90.21% numbers. The decrease in the coverage rates is due to data cleaning done Access & Quality of Upper Secondary Education NER upper secondary: 30.84% during the registration census audit in 2012, revealing close to 460,000 ghost (FY15) -(P145353) - Pipeline Target: students. This is due to the incentive of transfer per capita (‘nino atendido’/ Access with Quality to Higher Education II-SOP NER primary and lower secondary: 94% attending child). As a result, the baseline and target needed to be updated PHASE 2 (P145782) – FY14 Pipeline NER upper secondary: 35% based on clean statistics. The indicator, baselines and targets will be revised. Risk Management: Local currency financing for ICETEX, Antioquia Indicator 2. Increase in tertiary education enrollment Related Project ON TRACK The Access with Quality to Higher Education II-SOP PHASE 2 is scheduled Knowledge Services of students from poor households Baseline: 45.6% to be approved in 2014 to further boost these numbers. PKS Improved Opportunities in Education (P123144, Baseline: 75,000 (2010) In addition, IFC’s support to Uniminuto—a network of non-profit colleges— P132235) CLOSED Target: 150,000 Related Project helped enroll 65,116 students in this institution in 2012, more than doubling PKS Education Quality Report (ICFES)-(P106710) Target: 49.9% its enrollment from 2011 (31,620 students). CLOSED (2013) The indicator’s unit of measurement and wording will be revised to match the Actual Dec 2012: indicator in corresponding operation. Convening Services 58.1% In recognition of the risks associated with a rapid expansion of higher High-ranking Peruvian officials to learn from Escuela education and the potential implications for the quality of higher education Nueva Model services, the Bank follows a two-pronged mitigation strategy. The Access SSKE on Improved ECD Action Plans in La Paz and with Quality to Higher Education II-SOP PHASE 2 will incentivize quality El Alto improvements for participating higher education institutions and the Quality of Vietnam MOET Study Tour to Caldas, Colombia Secondary Education project under preparation is designed to better prepare IFC (Investment) 22 students, both academically and socially, to meet the challenges of higher Ongoing and potential new projects in technical and education, and in turn, better prepare Colombia's youth for the labor market. vocational adult education piloting financial literacy Milestone 1. Enhanced policy framework for quality Revised framework ACHIEVED Actions were geared towards improving the quality of education, especially programs. of education through the Todos Aprender and Rural and Media Education, focused on Baseline: Current framework training classroom teachers, improving the learning environment and Target: Revised framework material. Milestone 2. Improve national system for student The national system ACHIEVED The national system for student assessments has been improved by assessments for student introducing tests for 3rd grade and the tests SABER 3, 5 and 9 are now Baseline: Current system assessments has entirely comparable within grade. Also, SABER 11 is in the final review stage Target: Transformed system been improved and will be launched at the end of 2014 and SABER PRO has been made mandatory for all higher education programs. Outcome 3: Improved Performance of Social Services Indicator 1. Strengthened information systems to Plan for ECD ON TRACK Milestones related to ‘Improved Performance of Social Services’ are on track Financial Services: monitor service delivery and strengthen information system of being achieved, such as the strengthened management and information n/a accountability in health, education and ECD developed, Reform system of the health insurance system for the poor and the development of Knowledge Services: Baseline: Multiple information systems do not strategy developed information systems for the education sector and early childhood PKS Improved Performance of Social Services effectively capture productivity and quality of services and ongoing work development (ECD), respectively. (P123301) CLOSED in health, education and ECD with a number of Achievements to date include: Providing MoE with (i) assessment of the PA Improving Performance of Social Services Target: Unified information systems capture early achievements available information systems; (ii) framework of international best practice in (P145684) productivity and quality of services in health, for a strengthened education information systems, highlighting lessons learned from each Avian Influenza (TF 098473) CLOSED education and ECD information system experience; (iii) recommendations for enhanced education information Financial Capabilities and Education Measurement of the education system based on nat’l and int’l best practices. Project (FLIT, TF097524) CLOSED sector. IFC supported the 10-year expansion plans with a US$30 million debt Implementing the right to health (NTF, TF096788) Milestone 1. Develop information system for ECD Plan for ECD ACHIEVED commitment to Fundacion Cardiovascular, a hospital outside of CLOSED Baseline: Information system to be developed information system Bucaramanga, increasing healthcare coverage to an underserved region, Colombia enhancing governance, transparency and Target: Plan for ECD information system developed. developed benefitting mostly low-income populations. Fundacion Cardiovascular is accountability in education (IDF, P125541/ TF010384) IFC’s first health project in Colombia to provide high-quality healthcare Convening Services: coverage to an underserved region, benefitting mostly low-income Financed by grants: populations. Study tour to Israel on risk adjustment and related Milestone 2. Strengthen management and Reform strategy ACHIEVED health policies information system of the health insurance system developed Pakistan study tour on CCT programs in Mexico and for the poor Colombia Baseline: Reform strategy lacking IFC Target: Reform strategy developed - Fundacion Cardiovascular Hospital, Bucaramanga, Milestone 3. Strengthen information system of Work ongoing. MOSTLY serving low-income populations. education sector ACHIEVED - Pipeline: Medellin PMLA- Promotora Medica Las Baseline: Reform strategy lacking Americas Hospital serving low-income populations. Target: Reform strategy developed Engagement Area II: Sustainable Growth with Enhanced Climate Change Resilience Outcome 1: Improved Sustainable Urban Development Indicator 1. Increased population benefitting from 2,269.000 (June ACHIEVED Target surpassed. In addition, IFC’s US$176 million financing to Recaudo Financial Services improved transportation services in large cities; 2013) Bogota to increase the efficiency of Bogota’s public transport system through La Guajira Water and Sanitation Proj (P096965) Baseline: 460,000 (2011). Updated baseline to the use of smart cards and electronic data systems, was the first time IFC Bogota Urban Services AF (P074726) include Transmilenio Bogota: 1.740.000. LAC brought an Asian partner to the region who provided $62 million in Solid Waste Mgmt Project (P101279) Target: 1,800,000 (2014); updated to 2,100,000 mobilization along with technical expertise. Macroproyectos Project (P110671) (2014) In 2013, two important activities were achieved in addition, both through Integrated Mass Transit Systems (P082466 / knowledge services. One was the creation of the Road Safety Agency that P114325) CLOSED the Bank support and help to create with the support of the GRSF. And the Rio Bogota Project (P111479) second was the approval of the Congestion Charging decree. Both activities Productive and Sustainable Cities DPL CLOSED will generate important improvements for Colombia's mobility. For both the National Urban Transport (P117947) 23 Bank received the recognition from the National Government. Productive and Sustainable Cities DPL II (FY15) - Indicator 2. Increased population benefitting from 0 (June 2013) DELAYED Seven medium-sized cities have joined the National Urban Transport Pipeline improved transportation services in medium-sized Program in 2013 and are currently carrying out the construction phase, so Knowledge Services cities; that early results can be observed by end of the CPS. The operation is Sustainable, Productive and Inclusive Cities PA Baseline: 0 (2011) expected to start last trimester 2014. The cities of Valledupar and Sincelejo (P143513) Target: 150,000 (2014) are financed by IBRD. This program is co-financed by the IBRD, IDB and strategic Basin Planning for the Rio Bogota (WPP, CAF. TF095149) CLOSED Loan signing and effectiveness of the SNUTP project were delayed to Analyze the Experience of Specialized Water Operator accommodate a change in Colombian law affecting co-financing in Colombia (SFLAC TF098814) arrangements between national and local governments, the vigencias futuras Support the Rio Bogota Environmental (SFLAC, (future earmarked budgetary commitments). The use of vigencias futuras TF097840) was a fundamental element of the structure of the SNUTP Project and the Convening Services Borrower considered it appropriate to wait until the new Law regulating these BRT Study Tour - Da Nang Sustainable City was in place. Development Project Indicator 3. Improved institutional capacity of the Improved ON TRACK The Ministry of Transport – Sustainable Urban Mobility Unit (UMUS) is China Study Tour to Colombia – Innovative Urban central Government to plan and deliver strengthening its institutional capacity. The Unit is seen small to manage all Planning Solutions transportation services the cities being part of the National Urban Transport Program, and through the IFC (Investment) Baseline: n/a (2011) P117497, is hiring staff to be able to manage and support all the systems Triada LIH – Low-income housing Target: Improved (2014) under implementation. However this indicator is intermediate in nature and Recaudo Bogota- electronic payment system for urban difficult to measure and the indicator will be dropped. bus transport Milestone 1. Number of low income beneficiaries with 500 DROPPED The outstanding balance of the Macroproyectos Project will be cancelled, EPM- water services access to housing units under Macroproyectos due to policy changes for low-income housing. The changed approach will Green building projects (hotels, housing) subprojects. be supported through grant and other financing going forward, piloting new PPP structuring: FONADE-IFC MoU; Colombian Baseline: 0 (2011) models to support housing for low-income and informally employed Roads project; Concession structuring "Ruta del Sol"; Target: 40,000 (2014) population. These models include residential leasing products.IFC Transportation/Telecom projects from 10 to 16 committed US$10 million to Triada LIH, a Tier-II family owned construction and real estate company for the development of approximately 5-10 low- income housing developments in Colombia, helping to address the housing deficit and difficult-to-obtain long-term financing for land acquisition. In addition, IFC has been assisting GoC in improving the investment climate for the country's construction sector, particularly in terms of green buildings. This work has been accomplished through joint work with municipal governments as well as private sector entities. Outcome 2: Enhanced Disaster Risk Management Indicator 1. Strengthened technical capacity for 95% (1044) ACHIEVED Revised baseline to ‘insufficient capacity’ Financial services disaster risk management at national and regional municipalities are APL1 Disaster Vulnerability Proj.(P082429) CLOSED levels educated, trained APL2 Disaster Vulnerability Proj.(P085727) Baseline: n/a (2011) and aware of hazard CAT DDO (P113084) CLOSED Target: Improved (2016) risk reduction. CAT DDO II (P126583) Indicator 2. National Policy for Disaster Risk Critical laws and ON TRACK The formulation of the National Policy for Disaster Risk Management is on Risk Management: Management formulated. decrees passed. track to be formulated, albeit slowly despite the earlier progress in Blending model for structuring IBRD financial package Baseline: No (2011) establishing the Disaster Risk Management National Unit per Decree 4147 Loan customization for CAR (use of local currency) Target: Yes (2016) and the adoption of Law 1523 on National Disaster Risk Management. Also, Knowledge Services the methodology for the inventory of settlements in high risk areas was Consolidating Disaster Risk Management PA developed. (P145500) Milestone 1. At least 50 percent of Colombian 75% (824 ACHIEVED Risk Modeling Bogota (GFDRR , TF091242, Municipalities with Municipal DRM plans municipalities) Recipient) CLOSED Baseline: 0 (2011) Flood Protection in Barranquilla (SFLAC, TF096784) Target: 50% (2014) 24 Milestone 2. At least 250 functioning geological or 270 ACHIEVED CLOSED hydro-meteorological stations connected with early Barranquilla- integrated urban flood prevention warning systems (GFDRR, TF096323/4) CLOSED Baseline: 0 (2011) Strengthening crisis preparedness framework Target: 250 (2014) (FIRST, TF095378) CLOSED Milestone 3. Successful definition and 1 DROPPED The operation for vulnerability reduction in a second large city was dropped Disaster Risk Management Analysis (CCDRMA) implementation of vulnerability reduction investments (Barranquilla Flood Protection) at the request of the government due to (GFDRR TF098966) CLOSED in at least 2 large cities governments assessment of the city of Barranquilla’s insufficient financial FCPF REDD Readiness Trust Fund, CLOSED. Baseline: 1 (2011) and institutional capacity of managing additional debt and investments of Convening Services Target: 2 (2014) US$ 50 million. Providing the necessary guarantee by the Ministry of Finance SSKE on use of CCTs to address natural disasters and Public Credit was linked to a number of conditions that could not be (with CIDE Mexico) fulfilled by this city. Pipeline: SSKE: DRM incorporation into Territorial Planning: Honduras/ Colombia Outcome 3: Improved Environmental Management and Climate Change Resilience Indicator 1. Government has developed a national Bank’s advisory ON TRACK Government is on track of developing a national policy for climate change Financial Services policy for climate change and a national low-carbon services on and a national low-carbon growth strategy by the end of the CPS period. Sustainable Dev. Proj. + AF (P082520) growth strategy. Colombia Low While the latter is incomplete and will benefit from the Bank’s advisory Agricultural Transition (P082167) CLOSED Baseline: No (2011) Carbon Growth services on Colombia Low Carbon Growth Study, the climate change policy Grants: Target: Yes (2016) Study started; the is awaiting government review and adoption. Mainstreaming Cattle Ranching GEF +AF (P104687) climate change Protected Areas GEF(TF094084, TF056351) policy is awaiting Part of this process is the formulation and implementation of an inclusive CLOSED government review National ENREDD+ Strategy: (i) It engages indigenous peoples, afro- GEF Protected Areas AF (P091032) and adoption. colombian communities and campesinos to a direct policy dialogue around National Adaptation Plan (P083075) CLOSED land tenure, natural resource management, livelihoods and benefit sharing; Rio Amoya CF (TF053534) CLOSED (ii) it aims at strengthening full and effective participation of communities, for San Nicolas Carbon Sink CF (TF056577) CLOSED example, through a regional participatory platform of indigenous peoples in Forest Conservation in the Amazon (P144271) - the Amazon region (Mesa Indígena Amazónica Ambiental y de Cambio Pipeline Climático – MIAAC) established in 2012 to discuss and coordinate programs Risk Management: and activities in regards to climate change and natural resources. Afro- Full menu of IBRD CAT risk financing, weather colombian communities in the Pacific Region have also established a derivative and/or Cat-Bond regional participatory platform that dialogues directly with the Ministry of Knowledge Services Environment and Sustainable Development (MADS) on REDD+; (iii) it PA Environmental/ Mining Knowledge Services promotes cross-sectoral discussion and coordination in order to support (P143933) strategic planning at the national level for addressing climate change issues, PA Strengthening Environmental and Natural Res. including agriculture, land, mining, etc.; (iv) it coordinates with multiple Institution (P123864) CLOSED donors supporting and contributing to the same process formulating the Integrated National Adaptation Plan (INAP) GEF National REDD+ Strategy. (TF054614) Indicator 2. Government has mainstreamed 16,000 ha ON TRACK So far, 16,000 hectares of natural forests have been conserved by bringing NL Conservation Incentives Grant (TF094084) improved environmental practices in the agricultural them under environmentally-friendly production (silvopastoral livestock) FCPF REDD Readiness (TF097224/P120899) sector through a scaling up of silvopastoril livestock systems in benefitting cattle ranching farms. The supporting operation will CLOSED systems benefit from additional financing and is on track of achieving its 57,000 Baseline: 0 ha (2011) hectares target by 2017. The target value will be adjusted to reflect the Convening Services Targets: 50,500 ha (2016) restructuring of the parent project as well as the Additional financing. FCPF Regional Workshop on "Social Inclusion in Wording will be improved for better measurability. REDD+ Readiness” In addition, through the GEF Protected Areas project, 2.6 million hectares of Green Growth Policies Workshop core conservation areas and 57% of the surrounding territories have been IFC (Investment) brought under improved management systems in the Amazon Basin. 346 FDN equity and Advisory Facility - Pipeline families have continued adopting sustainable production and improved Oil, Gas and Mining Sector projects: early mining management systems in these conservation mosaics. exploration in Western Colombia (El Dovio); Milestone 1. Establishing a national emissions Action plan DROPPED The subcomponent of the related Sustainable Development Investment Greenfield LNG development - Pipeline 25 testing center as part of the air quality monitoring presented to Project was restructured. Air pollution as a result of particulate matter causes IFC (Advisory) network government some 6.000 deaths annually in Colombia. Colombia has made important Extractive Industries Adv. Services: EcoOro Extractive Baseline: 0 (2011) detailing reforms efforts to improve the quality of fuels and to demand stricter emission to Res.Industry; Royalty Management; Royalty Target: 1 (2014) needed for the improve air quality. It is equally indispensable to strengthen the process of Monitoring; construction, verifying compliance with standards for new imported and assembled Green building codes, energy efficiency, cleaner operation and future vehicles. The constructing of a VHC will allow for direct verification of vehicle production sustainability of the emissions and noise. With the support of the SFLAC grant, the Bank has Vehicle supported the implementation of a detailed pre-feasibility study and design Homologation for the VHC (US$ 186.000) which was implemented by a Spanish firm (GPO Center (VHC). Ingenieria S.A.) selected through an international competitive bidding process. The study was completed with very good results in October 30, 2013, and will help the government create a strategy for the creation of a VHC in Colombia. The study includes legal, technical, economic and financial recommendations. According to the study, the legal nature of the VHC will depend on the financial business model and could include and engagement with the private sector through a PPP. Milestone 2. Water quality monitoring network and Expected for 2014. DROPPED The related Sustainable Development Investment Project was restructured information system strengthened. and the indicator has changed. Baseline: Not fully operational (2011) Target: Operational with 13 new water quality monitoring stations (2014) Engagement Area III: Inclusive Growth with Enhanced Productivity Outcome 1: Improved Fiscal, Financial and Social Risk Management Indicator 1. The Central Government meets the Less than 2.3% ACHIEVED The 2014 National Budget approved in October 2013 projects a fiscal deficit Financial Services structural fiscal deficit target for 2014 (2.3% of GDP of 2.3% of GDP. In line with Colombia's fiscal rule, the budget proposed new Fiscal Sustainability and Growth Resilience DPL or less). financing sources matching the increase in expenditures (rural development series (FY12-13) CLOSED programs). Results for 2013 were also in line with the Fiscal Rule and Enhancing Fiscal Capacity to Promote Shared Medium Term Fiscal Framework. Prosperity DPL (P145605) This outcome was directly supported by the series of DPLs of an overall Productivity DPL (PREM/FPD/Social) FY15 - Pipeline commitment of US$1.1 billion and an extensive series of programmatic CAT DDO (P113084) CLOSED knowledge services and other advisory components, to promote the CAT DDO II (P126583) progressive fiscal reform and influence Colombia’s debt management Risk Management strategy. Specific support was also provided by the Bank’s Treasury Full menu of IBRD CAT risk financing, weather department; the Bank advised in-depth on the proposal, methodology and derivative and/or Cat-Bond models of the debt management strategy, which was later approved by the Knowledge Services Ministry of Finance. PA Sound Financial Sector Development (P133789) Indicator 2. Financial instruments to mitigate natural 3 instruments ACHIEVED The fiscal DPL program supported the development of a national financing National Public Finance Study (P106916) CLOSED disaster risks have been implemented by 2013. From effective and 1 strategy for natural disaster risk management. This included the development TA to improve the monitoring of social impact of the 0 in 2011 to 3 by end 2013. additional under of financial instruments, i.e. ex ante budgetary or market-based tools that crisis CLOSED preparation contribute to increased financial protection of the state against disasters. Institutional Mineral Rights Cadastre Reform (SFLAC) Targeting the existence of three related financial instruments is quantitatively Banking ROSC CLOSED measurable and the fact that they were not explicitly classified allowed for Fiscal Policy for Sustained and Inclusive Growth PA flexibility to identify well-suited instruments. The government successfully put IP133307) - Pipeline in place three instruments by 2013: a catastrophic DPL with a deferred drawdown option of 250 million USD was signed with the World Bank in 2012, Convening Services a financial protection sub-account of the National Fund for Disaster Risk Philippine Delegation to Mexico and Colombia on Management was put in place with Law 1523 of 2012, and mandatory Fiscal Risk Management standard terms and conditions for the insurance of road and infrastructure IFC (Advisory) against disaster risk (such as flooding and earthquakes) entered into force in Extractive Industries Royalty Management; Royalty the context of the fourth generation of public private partnerships concessions. Monitoring; Revenue management advisory services Furthermore, the Ministry of Finance and Public Credit and the Columbian in mining (municipalities) 26 Procurement Agency are currently developing a framework agreement for the Deepening Colombia’s capital markets in key sectors collective insurance for central government buildings that should enter in force (regulatory and institutional reforms, transaction in the next months and the Ministry of Finance and Public Credit is conducting support activities) (IFC00578507-TF098321 ESMID) a cost-benefit analysis concerning a Catastrophe Swap. Analytics are being finalized for CAT Swap to include damage and loss scenarios. The team is hoping to go to market early 2014 - but this is ultimately a political decision to be taken by MHCP. This indicator will be revised to include a measurable baseline and target. Milestone 1. The Central Government overall deficit: -2.4% ACHIEVED The Bank (through this CPS) played an important role in supporting this Baseline: 3.9% (2010). outcome by supporting a series of fiscal reforms implemented by the current Target 3.5% of GDP or less by 2012 and 3.2% of administration. The first stage of the reform process was supported by GDP or less by 2013. selected financial and convening services, including a programmatic development policy operation and an workshop with Government officials on international experiences in subnational management of commodities resources. The second wave of reforms was supported by activities under the Strengthening Fiscal Policy for Sustained and Inclusive Growth Programmatic Approach, including a study on the fiscal cost of tax exemptions, an equity assessment of Colombia fiscal policy, and an analysis of expected impacts of the latest tax reform. Outcome 2: Improved Public Sector Management and Equity and Efficiency of Economic Policies Indicator 1. Enhanced public sector efficiency and Public Management ACHIEVED (i) Information on budget execution, i.e., revenues and expenditures, is now Financial Services transparency by strengthening and expanding the Information Systems available on a daily basis representing 100% of the total amount of the Lending: individual management information systems that are provide on time, National Budget; (ii) the time lag to produce aggregate financial data for the Consolidation of National Public Management the building blocks of an integrated, performance- reliable and central government, including decentralized, entities has been reduced from Information Systems Project (P106628) informed management model, including: Sistema consistent up to 35 days to 1 day; (iii) 100% of consolidated budget information (at the Strengthening Justice Services (P083904) Integrado de Informacion Financiera SIIF-Nación, information on level of individual entities) is being published online on a monthly basis within Strengthening Public Information, Monitoring, Sistema Unificado de Inversiones y Finanzas budget and the first week of the following month; (iv) studies to strengthen fiscal and Evaluation for Results Management SIL(P099139) Públicas investment macroeconomic planning have been completed; and (v) SIIF and SUIFP Sub-National Institutional Strengthening (P123879) SUIFP and execution information on the allocation and execution of budget items has become fully Lending Pipeline: Modelo Único de Ingresos, Servicios y Control consistent. Productivity DPL (PREM/FPD/Social) FY15 Automatizado Multi-Sector DPL (FY16) MUISCA. Knowledge Services Baseline: 2011 - Public Management Information PA Poverty and Equity (P133763) Systems do not provide on time reliable information PA for Public Sector in Colombia (P143384) on expenditures and investments. Legal claims mgmt system (IDF, TF058311) CLOSED Target : 2015 - Public Management Information Expanded subnational rapid assessments of PSM Systems provide on time, reliable and consistent Decentralization Study (P101308) CLOSED information on budget and investment execution. Strengthening Procurement System (TF092702) Indicator 2. Management capacities at sub-national - DELAYED Project preparation took longer than anticipated due to innovative and CLOSED level of governments are improved and have a complex features and the restructuring of the responsible government Procurement Law Reform Implementation (IDF, positive impact in the quality of expenditures and the agency. Indicator is revised in favor of early outcomes captures with outcome TF092702/P109841) CLOSED provision of services. indicator. Advisory work on accounting and financial reporting Baseline (2011): Lack of efficient mechanisms in the Revised Indicator: The Subnational Government’s integrated financial control standards CLOSED National Government to provide effective and model has been designed and approved by Ministry of Finance and Ministry efficient support to sub national governments for the of Planning. Convening Services strengthening of management capacities. Baseline 2013: no integrated model SSKE: Participation in expert committee on poverty Target: 2015 - A set of mechanisms have been put in Target 2016: designed and approved. measurement place and are available to sub national governments Monitoring and Evaluation Networks for Evidence- to improve their management capacities. Based - Decision Making SSKE: Improving performance of subnational Indicator 3. Improved quality and accessibility of the Annual release ACHIEVED Revised Indicator 3 for improved means of verification for the revised governments- pipeline evidence base for decision making and particularly endorsed. indicator: Endorsement of annual release of monetary and multidimensional for policies and programs related to poverty poverty indicators and its corresponding micro data by the Monetary Poverty IFC (Advisory) 27 reduction. Expert Committee and the Multidimensional Expert Committee. Doing Business in Colombia Round 3 and Trade Baseline: 2011 - No micro data produced by DANE is Logistics made available to the public. NatPlan Colombia Project (Municipal construction Target: 2015 - Public guidelines to grant access to permits) the micro data produced by DANE. Trade Logistics Program Indicator 4. Improvement in the movement of cargo 10 days to import ACHIEVED The VUCE (Single Window for Foreign Trade) has streamlined procedures in and out of Colombia by enhancing automation and 9 days to with an online registry for trade transactions that eliminated the need to through the VUCE system and improved handling of export. physically submit certain types of trade related documentation. The revision cargo at ports through risk based policy and of the indicator simplified language and measurement and provided years for procedures. baselines and targets. 2008 is the last available data point for the baseline. Baseline: 24 days for imports and 23 days for imports. Source: VUCE (IFC report). To date, 400 firms benefited from improved Target for 2014: 10 days to import and 9 days to customs and border services supported by IFC. The project has further export. generated the issuance of more than 15 pieces of legislation aimed at facilitating trade and its transactions for the Colombian private sector, thus generating greater legal security for traders and savings in inventories, damage of goods and warehousing. Milestone 1. 100% of consolidated budget Fully available ACHIEVED The transparency portal is active and was officially launched by the Minister information (at the level of individual entities) is online of Finance in September 2013 published online on a monthly basis within the first week of the following month Baseline: not published Target :80% by 2014 Milestone 2. SIIF and SUIFP information on the Fully consistent ACHIEVED SUIFP feeds the SIIF all information related to budget and execution of allocation and execution of budget items is fully information. public expenditure. consistent. Baseline Not consistent today Target: Consistency achieved by 2013. Milestone 3. A cloud computing scheme to provide - DROPPED financial management and monitoring services to Information could not be verified. local governments is implemented. Baseline: Currently not existing Target: First version operating by 2013 Milestone 4. A program to increase managerial - NOT The outcome indicator has been updated, but the milestone is no longer capacity at sub national level is implemented ACHIEVED relevant due to longer than expected preparation time of the supporting Baseline: Not existing operation. Target: The program is launched in 2012 and by 2013 20% of low performing municipalities are included in the program. Milestone 5. The FUT (Single Territorial Format) is FUT completed. ACHIEVED implemented as the sole source of sub national budget and final reporting) Baseline Limited coverage Target Sole source by 2012 Milestone 6. New poverty methodology is finalized Revised poverty ACHIEVED and announced and well received by the public. methodology Baseline: May 2011 official poverty methodology approved (based in 1996 expenditure survey) Target: May 2012 revised poverty methodology (based on the 2006 expenditure survey) 28 Outcome 3: Improved Productivity and Innovation Indicator 1. Strengthened capacity of COLCIENCIAS - NOT The supporting project was restructured; the indicator will be DROPPED. Financial Services to promote human capital for knowledge economy, OBSERVABLE Lending: research and development, and innovation. (DROPPED) Agricultural Transition Project (P082167) CLOSED Number of journal articles by Colombian Rural Productive Partnerships II Project (P104567) researchers in SCI expanded per million population Science, Technology, and Innovation (P117590) Baseline (2009): 48.0 Finance and Private Sector Development (P116088) – Target (2014): 58.5 CLOSED Indicator 2. Raised awareness of science, Not measureable NOT The supporting project was restructured. Awareness raising will be measured Lending – Pipeline: technology and innovation in the Colombian society. OBSERVABLE at the project level. Productivity (PREM/FPD/Social DPL) FY15 Total grant applications for research and (DROPPED) Multi-Sector DPL (FY16) development and innovation subprojects received Knowledge services, incl. combined WBG yearly by COLCIENCIAS Colombia Deep Dive Baseline (2009): 2009 Innovation and Competitiveness PA (P144510) Target (2013): 2674 Cooperation agreement on Investment Climate: Indicator 3. Improved regulations for business and The law was PARTIALLY The law was enacted in 2013 and the registry is in place and starts February Regional Doing Business Reform Advisory project property registration, and reform the legislation for enacted in 2013 and ACHIEVED 2014. There are no activities in direct support of regulations for business and (P131158) secured transactions and the collateral registry. the registry is in property registration, beyond dissemination of good practice (measured by Innovation, Productivity and Entrepreneurship Efficiency of starting a business. place and starts the milestone), but IFC supported improvements in construction permit (TF096995) CLOSED Baseline: 9 procedures, 14 days, February 2014. procedures: 42,500 new businesses have completed new/reformed Financial capabilities Assessment (P122698) Target (2014): 4 procedures, 6 days There are no procedures for construction permits in targeted municipalities, amounting to CLOSED activities in direct US$ 7.7 mill in private sector savings. Agriculture Risk Management RAS support of Diagnostic Facility for Shared Growth, (TF096995) regulations for CLOSED business and Support for the Reorganization of INCO (PPIAF, property registration. TF099124) CLOSED Indicator 4. Higher financial inclusion measured by - DROPPED Increase in deposit accounts not relevant for the program, there were no Pipeline: OECD Agenda Programmatic RAS increased percentage of the population with a supporting activities, also target data seems wrong. Instead, two relevant Banco AVVillas and its partner DDDedo (an airtime deposit account. indicators, linked to interventions in the financial sector program will be distribution network) for a mobile low-cost savings Baseline: 1,295 accounts per 1,000 adults (2010) included. account for low-income population (CGAP). Target: 1,400 accounts per 1,000 adults (2014). In addition, important for the productivity agenda, IFC structured a $150 Convening Services million equity investment with IFC’s Asset Management Company in Pacific SSKE Strengthening Bolivia’s National Science, Infrastructure, a holding company focused on the development of liquid and Technology and Innovation System cargo terminals and other oil and gas midstream assets. This project will Workshop on Evaluation approaches for Productive support Colombia’s competitiveness in the port sector and help overcome Alliance projects infrastructure bottlenecks in oil export activity. - IFC has also supported Credivalores, one of the largest non-banking IFC (Investment) financial institutions providing credit to low-income population serving more FDN investment for infrastructure finance than 175,000 clients in 24 states and 72% of whose clients have accessed Avantel 4G LTE (equity investment) credit for the very first time. Another IFC investment supported the first Virgin Mobile Colombia (VMCO) factoring company established in Colombia to extend additional liquidity to Pacific Infrastructure-Liquid terminal Cartagena SMEs. (equity/assent mgnt) - Grupo Sura: IFC 2012 commitment of $125m in equity plus an additional PetroNova (equity investment) $60m from IFC’s Asset Management Company to strengthen Latin America's GFO (Grupo factoring de Occidente)-loan private pension fund management industry in a regionally integrated manner Tier 2 insurance companies and mobile banking by supporting Grupo de Inversiones Suramericana S.A (“Grupo Sura”) in its Transformation projects in agriculture (cocoa, dairy, expansion plan, supporting the development of a strong local pension soy and sugar); Foresty system in Mexico, Chile, Colombia, Peru and Uruguay. This is of the outmost PetroNova (equity) importance as pension funds plays a critical role in terms of generating long Credivalores-credit to low income segment term financial resources for investments in priority sectors of the economy MAS Colombia International Private Equity Fund - such as infrastructure. At the same time, the development of pension Pipeline systems and capital markets are closely interrelated. Quimbaya- infra and SME equity and south-south 29 - DARP Program (Distressed Assets Relief Program): IFC has committed expansion two projects in FY13 in Colombia under DARP. The DARP program in Brazil, IFC (Advisory) Argentina, Mexico and Colombia has allowed for banks to sell their NPLs Royalty management advisory services for Innovation and clean their balance sheets to focus on their primary business of lending, at regional level allowing specialized institutions to help with recovery of non-performing SME factoring (primarily with grants) loans Gender and microfinance sector support Milestone 1. At least 3 financing instruments designed 3 instruments ACHIEVED Banco Davivienda-SME Finance (Adv. Services) or redesigned and approved by Colciencias Board of approved Bancamia a Micro-Finance Financial Service (MFS) Directors by 2013. project (Adv. Services) Milestone 2. Monitoring and evaluation framework for - DROPPED Project restructured. Infrastructure advisory, PPP structuring for highways, social dissemination of STI defined by 2013. ports Milestone 3.Number of additional families benefitting 41,245 (Dec 2013) ACHIEVED from high value agricultural value chains from 498 new Baseline: 0 (2010) partnerships Target: 32,000 (2014) Milestone 4. Design of pilots for enhancing technology Pilots designed. ACHIEVED transfer and diffusion. More to be designed, especially a program for open innovation. Milestone 5.Disseminate good practices and Good practices ACHIEVED The Doing Business in Colombia 2013 report was launched in Bogota in regulatory reforms implemented by local disseminated August 2013 before an audience of approximately 140 people and significant Governments in the areas measured by the 2012 associated with media coverage (feature articles in most major print and online outlets and sub-national Doing Business report in Colombia Doing Business over forty media mentions within 5 days, around 3,500 views of the report Report. webpage). The dissemination was embedded in a panel discussion with the High Counselor for Public and Private Management (Alta Consejera Presidencial para la Gestión Pública y Privada), DNP and the private sector represented by the National Confederation of Chambers of Commerce (Confecamaras) and Bogota’s Investment Promotion Agency. Milestone 6. Scaling up of financial education Colombian Financial ACHIEVED In addition, through IFC support: Number of Students Reached by financial strategy. Capabilities literacy programs technical and vocational adult education supported by IFC Assessment interventions currently at 65,000 (o/w 32,600 female) over baseline of 32,000 provided to inform (o/w female 20,000). Will be further scaled up to a target of 75,000 (of which financial education 45,000 female). strategy and financial inclusion by 2014 30 Annex 3. Selected Indicators of Bank Portfolio Performance and Management (IBRD, GEF) Selected Indicators* of Bank Portfolio Performance and Management As of 4/16/2014 Indicator 2011 2012 2013 2014 Portfolio Assessment Number of Projects Under Implementation a 21 21 19 20 b Average Implementation Period (years) 3.8 4.6 5.0 4.8 Percent of Problem Projects by Number a, c 14.3 19.0 26.3 20.0 Percent of Problem Projects by Amount a, c 7.5 16.8 34.6 18.6 a, d Percent of Projects at Risk by Number 14.3 19.0 26.3 20.0 Percent of Projects at Risk by Amount a, d 7.5 16.8 34.6 18.6 Disbursement Ratio (%) e 45.4 6.7 17.0 4.8 Portfolio Management CPPR during the year (yes/no) yes yes yes yes Memorandum Item Since FY 80 Last Five FYs Proj Eval by OED by Number 143 5 Proj Eval by OED by Amt (US$ millions) 13,729.2 1,507.5 % of OED Projects Rated U or HU by Number 22.7 0.0 % of OED Projects Rated U or HU by Amt 14.5 0.0 a. As shown in the Annual Report on Portfolio Performance (except for current FY). b. Average age of projects in the Bank's country portfolio. c. Percent of projects rated U or HU on development objectives (DO) and/or implementation progress (IP). d. As defined under the Portfolio Improvement Program. e. Ratio of disbursements during the year to the undisbursed balance of the Bank's portfolio at the beginning of the year: Investment projects only. * All indicators are for projects active in the Portfolio, with the exception of Disbursement Ratio, which includes all active projects as well as projects which exited during the fiscal year. 31 Annex 4. Colombia: Active, Closed IBRD Lending Operations per CPS Engagement Area Net Status* Implementation - CPS Period Project Project Name Comm Approval Closing ID ($US mil) A C FY12 FY13 FY14 FY15 FY16 FY17+ Engagement Area 1: Expanding Opportunities for Social Prosperity P101211 Support for the Second Phase of the Expansion of the Program of 636.5 X 2009 X Conditional Transfers-Familias en Accion Project P105164 Second Student Loan Support Project, APL Phase I 300 X 2008 X P051306 Peace and Development Project (1st Phase APL) 7.8 X 2010 X P052608 Antioquia Upper Secondary Education 20 X 2008 X P082908 Colombia Rural Education Project (APL Phase II) 40 X 2008 X Engagement Area 2: Sustainable Growth with Enhanced Climate Change Resilience P113084 Disaster Risk Management DPL w/Catastrophe DDO 150 X 2009 X P082167 Agricultural Transition 30 X 2005 X P130972 Productive and Sustainable Cities DPL 150 X 2013 X P082466 Integrated Mass Transit Systems 300 X 2010 X P082429 Disaster Vulnerability Reduction First Phase APL 110 (rev) X 2005 X P085727 Disaster Vulnerability Reduction Project - APL2 80 X 2006 X P101279 Solid Waste Management Program Project 20 X 2010 X P082520 Sustainable Development Investment Project (including AF) 17 X 2006 X P074726 Bogota Urban Services Project 130 X 2009 X P110671 National Macro-Proyectos Social Interest Program Project 40 X 2011 X P126583 Second Disaster Risk Management DPL with Catastrophe DDO 250 X 2013 X P111479 Rio Bogota Environm. Recuperation and Flood Control Project 250 X 2011 X P096965 La Guajira Water & Sanitation Infrast and Service Mngmt Proj 90 X 2007 X P117947 Support to the National Urban Transit Program Project 292 (rev) X 2012 X Engagement Area 3: Inclusive Growth with Enhanced Productivity P123267 First Programmatic Fiscal Sustainability & Growth Resilience DPL 300 X 2012 X P116088 Finance and Private Sector Development 300 X 2010 X P129465 Second Programmatic Fiscal Sustainability & Growth Resilience DPL 200 X 2013 X P106628 Consolidation of National Public Management Information Systems 25 X 2010 X P083904 Justice Services Strengthening Project 20 X 2010 X P145605 Enhancing Fiscal Capacity to Promote Shared Prosperity DPL 600 X 2014 X P099139 Strengthening Public Information, Monitoring, Evaluation for Results 8.5 X 2009 X Management in Colombia P104567 Second Rural Productive Partnerships 30 X 2008 X P117590 Science, Technology and Innovation 25 X 2011 X P123879 Sub-National Institutional Strengthening 70 X 2014 X * A – Active, C – Closed. Operations active for remainder of CPS Report are shaded. Status as of end December 2013. 32 Annex 5. Colombia Lending Program: Indicatively Planned FY12/13 vs. Actual FY12-14 Approval FY Net Comm. Amount (US$ mil) Project ID Project Name Proposed Actual Proposed Actual P117947 Support to the National Urban Transit Program Project FY12 FY12 350 350 (292 rev)** P126583 Second Disaster Risk Management DPL with Catastrophe DDO FY12 FY13 150 250 P082520 Sustainable Development Investment Project (including AF) FY12 FY12 10 10 P123267 First Programmatic Fiscal Sustainability & Growth Resilience DPL FY12 FY12 300 300 P123879 Sub-National Institutional Strengthening FY12 FY14 150 70 - Small-holder Agriculture Competitiveness FY12 - 150 - P145353 Improving Access and Quality of Upper Secondary Education FY13 FY15 (pipeline) 150 100 - Social Safety Net III FY13 - 150 - - Disaster Vulnerability Reduction Phase 2 APL1 FY13 - 100 - - Barranquilla Flood Protection FY13 - 100 - P130972 SD (DPL): Productive and Sustainable Cities FY13 FY13 100 150 P129465 Fiscal Sustainability and Growth Resilience (DPL II) FY13 FY13 200 200 - Innovation, Competitiveness, and Entrepreneurship FY13 - 100 - P145605 Fiscal Capacity and Shared Prosperity DPL* n/a FY14* - 600* P145782 Access with Quality to Higher Education II-SOP PHASE 2* n/a FY14* (pipeline) - 200* Total FY12-FY14 Count: 13 Count: 10 2,010 2,230 (2,172 rev) * Note: CPS only outlined program for FY12-13 **of which US$58 million were cancelled in FY14, leading to a net commitment of US$292 million for this project. 33 Annex 6. Colombia: Active, Closed Trust Funds per CPS Engagement Area Status* Implementation CPS Period Project Trust Fund Project Name US$ ,000 A C D Approval Closing ID ID FY FY12 FY13 FY14 FY15 FY16 FY17+ Engagement Area 1: Expanding Opportunities for Social Prosperity P127301 Labor Inclusion Model for Intellectually Challenged Youth (GFYI) TF 10110 15 X 2012 X P052608 Empowering Young Women Affected by Violence in Colombia TF 93829 1,483 X 2009 X P127302 SK Producciones - Youth Collective Group TF 10108 23.1 X 2012 X P115630 Protection of Land and Patrimony of IDP TF 94596 6,000 X 2010 X P125541 Enhancing Governance, Transparency, Accountability in Education TF 10384 377.7 X 2012 X P125697 JSDF Colombia: Soccer Together TF 99171 1,900 X 2011 X P051306 Peace and Development Project - Access to Opportunities for TF 91174, 1,735 X 2008 X Young People in Colombia (1st Phase APL) and AF TF 93141 2011 Engagement Area 2: Sustainable Growth with Enhanced Climate Change Resilience P074426 Jepirachi Carbon Off Set Project and AF TF 93087 675 X 2003 X TF 51156 2010 P121007 Traditional Knowledge:Prescription for Environm. Land Managm’t TF 96718 199.3 X 2011 X P083075 Integrated National Adaptation Program TF 56350 5,400 X 2007 X P091932 National Protected Areas Conservation Trust Fund TF 56351 15,000 X 2006 X P120159 Barranquilla Urban Flood Management TF 96015 725 X 2010 X P120899 FCPF REDD Readiness TF 97224 200 X 2011 X P078220 Amoya River Environmental Services TF 53534 8,952 X 2011 X P104687 Mainstreaming Sustainable Cattle Ranching TF 96465 7,000 X 2010 X P091932 National Protected Areas Conservation Trust Fund TF 11814 4,000 X 2012 X P132851 Commercial Reforestation on Lands Dedicated to Extensive Cattle TF 15074 5,241 X 2014 X Grazing in Magdalena Bajo Seco Region P098615 San Nicolas Carbon Sequestration Project TF 90526 486 X 2007 X P100738 Caribbean Savannah Carbon Sink project TF 57994 988 X 2007 X P088752 Rio Frio Carbon Offset Project TF 54033 1,188 X 2006 X Engagement Area 3: Inclusive Growth with Enhanced Productivity P109841 Procurement Law Reform Reglementation (IDF) TF 92702 365 X 2009 X P125763 Building the Foundations for a Longitudinal Survey in Colombia TF 99705 166.5 X 2012 X P083904 Justice Services Strengthening - Peaceful Dispute Resolution TF 91176 1,900 X 2008 X Services for the Poor * A – Active, C – Closed, D – Dropped. Operations active for remainder of CPS Report are shaded. Status as of end December 2013. RETF Approvals and Disbursements, FY12 - FY14 Q2 (US$ mill.) Fiscal Year Disb Commit FY12 9.92 10.40 FY13 5.97 1.70 FY14 Q2 6.67 5.24 Grand Total 22.56 17.34 34 Annex 7. Colombia CPS Knowledge Services Program per CPS Engagement Area Type*: PA/ Number Status** Implementation PKS/ D/ ESW / of P A C D FY Approval FY Delivery Project ID Project Name RAS Subtasks Engagement Area 1: Expanding Opportunities for Social Prosperity P145684 Improving Performance of Social Services PA 2 X 2014 2015 P144491 Peace Consolidation Through Sustainable Social & Human Dev. PA 24 X 2013 2015 P123158 Enhanced Social Promotion PKS 8 X 2011 2014 P123144 Improved Opportunities in Education/Skills for Shared Growth PKS 10 X 2010 2013 P123301 Improved Performance of Social Services PKS 8 X 2010 2012 P132235 Improving Opportunities for Education II PKS 9 X 2012 2014 P129859 PKS on Social Inclusion III PKS 18 X 2013 2014 - Citizen Security with a focus on youth violence prevention RAS - X Engagement Area 2: Sustainable Growth with Enhanced Climate Change Resilience P143513 Sustainable, Productive, and Inclusive Cities PA 42 X 2013 2015 P143933 Environment/Mining Knowledge Serv. PA 9 X 2013 2016 P121640 Urbanization Review ESW - X 2011 2012 P125932 Support to Infrastructure Concession Entity Restructuring TA - X 2011 2013 P124909 Low-carbon Development ESW - X 2011 2013 P123864 Strengthening Environmental and Natural Res. Institution TA - X 2011 2013 P125514 Institutional & Mineral Rights TA - X 2011 2013 P129542 Programmatic Engagement in DRM (also P145500) PKS 2 X 2012 2015 P132933 Empresa Nacional de Renovacion y Desarrollo Urbano RAS - X 2013 2013 P130560 Agriculture Commodity Exchange (delivered) RAS sub task X 2012 2014 P145462 Mineral Sector Reform RAS sub task X 2014 2015 P150217 Mineral Sector Reform Part II RAS Sub task X 2014 2015 Engagement Area 3: Inclusive Growth with Enhanced Productivity P133763 Poverty and Equity PA PA 3 X 2013 2015 P143384 Programmatic Approach for Public Sector in Colombia PA 10 X 2013 2015 P144510 Innovation and Competitiveness PA PA 11 X 2014 2015 P133307 Strengthening Fiscal Policy for Sustained and Inclusive Growth PA in prep. X 2014 TBD P133789 Sound Financial Sector Development PA 17 X 2014 2015 P126865 Productivity, Competitiveness and Entrepreneurship ESW - X 2012 2014 P122698 Financial Capability Assessment TA - X 2011 2013 P129819 Government Debt and Risk Mgmt TA - X 2014 2017 P118488 Public Sector Accounting Standards TA - X 2011 2013 P144772 Civil and Family Courts RAS sub task X 2014 2015 P145012 Institutional Strengthening on Decentralization RAS sub task X 2013 2015 P131016 Case File Review and Stocktaking of Administrative Courts RAS - X 2012 2014 P148969 Justice Sector Strategy Post-Conflict RAS sub task X 2014 2015 P148732 Public Sector Accounting Reform RAS sub task X 2014 2015 P148034 Colombia Compra Eficiente RAS sub task X 2014 2015 P150057 Enhanced Public Asset Management RAS In prep. X 2014 2015 P149558 Modernization of the Colombian Tax Administration System (DIAN) RAS In prep. X 2014 2015 - Programmatic RAS: OECD PA - RAS In prep. X 2015/16 2017/18 - Strengthening Institutional Capacity of DIAN RAS sub task X 2015 2015 - Adaptation of Industrial Sector to int’l Macro Context RAS sub task X 2015 2015 Entire CPS P147717 Colombia Policy Notes ESW - X 14 15 * PA – Programmatic Approach, PKS – Programmatic Knowledge Services (showing as discrete tasks in the system before PA were made available in the operations portal), D – Discrete Task, ESW – Economic and Sector Work, RAS – Reimbursable Advisory Services ** P - Pipeline, A – Active, C – Closed, D - Dropped 35 Annex 8. Update on Colombia’s Role in South-South Knowledge Exchanges 1. Colombia has been a global and regional player in South-South Cooperation (SSC). Colombia previously served as the co-chair of the global Task Team on SSC, and the Government has developed a Strategy for International Cooperation for 2010-2014. Colombia’s Agency for International Cooperation (APC) coordinates SSC based on the needs of partners and Colombia’s expertise and priorities. The APC has supported initiatives to map Colombia’s cooperation activities, and capture and disseminate good practices in SSC and South-South Knowledge Exchange (SSKE). In recent years, the Government and APC have worked to deepen regional cooperation, including through a Program of Cooperation with MesoAmerica, which supports sharing Colombia’s experiences in governance, public services, social promotion, and other sectors. The APC is also a partner in the Iberoamerican Program on Strengthening South- South Cooperation, an inter-governmental initiative of 20 countries focusing on agency development in areas like result management, information systems, good practices, and triangular cooperation. In addition, the Government seeks to increase the capacity of Colombian institutions to share their expertise globally. 2. Convening Services, including South-South Box 5. SSKEs by Knowledge Exchanges have steadily increased. CPS Engagement Area, by FY South-South Cooperation continues to be relevant and Colombia still strives to promote itself as a regional 30 and global SSKE leader. Convening Services are an 20 8 integral part of Programmatic Approaches or other 10 3 11 6 4 6 6 6 projects and are aligned with the objectives and 0 3 results of the CPS engagement areas. The portfolio FY12 FY13 FY14 has grown from only 2 recorded SSKE activities in Pillar 1 Pillar 2 Pillar 3 FY11 to 13 FY12 and 25 in FY13 and 15 during the first half of FY14. Of these 54 overall SSKE activities, 15 were in support of engagement area I, 22 for engagement area 2 and 17 supported engagement area 3 of the CPS. 12 of these exchanges were funded by the Bank’s South-South Facility, a multi-donor trust fund, to which Colombia is a key donor. 3. Reflecting its commitment to South-South learning, Colombia engaged in 2011 in a pilot program of the World Bank Institute (WBI). Under this Pilot, WBI provided funding to Colombian agencies to capture lessons from Colombia’s Familias en Accion Conditional Cash Transfer Program and its Unidos Social promotion program, and package these experiences into knowledge offers. The Pilot, which included Colombia and five other countries, surfaced lessons on how to broker SSKE among knowledge provider and recipient countries. It revealed the importance of building a deep market of knowledge supply and demand within sectors globally, and the role that Communities of Practice (CoPs) can play in fostering connections and stimulating bilateral exchanges. The Pilot suggested that knowledge offers should be framed around the innovations of a country’s experience, and use engaging media, such as presentations and videos. As one result of the Pilot, there was interest in circulating these Colombia SSKE knowledge offers, including within a regional CoP and a regional conference. More broadly, the Pilot helped confirm demand in Colombia and elsewhere for support in helping institutions to build their capacity to share their know-how. This informed follow-on activities, including the Bank’s organization of a High-Level Meeting in Bali in July 2012 on country-led knowledge 36 hubs, and the development of a global CoP to promote dialogue on supporting such hubs (www.knowledgehubs.org). In 2013, the World Bank launched a related Pilot to build the capacity of knowledge hubs to share their knowledge with others. This Pilot has provided a range of technical assistance to sector-level institutions in Brazil, Indonesia, and Nigeria, as well as to Colombia’s National South-South Facility funded SSKEs - Examples Administrative Department of Statistics  Officials from two Vietnamese cities visited Colombia to learn how to plan and implement Bus (DANE). In November 2013, WBI organized Rapid Transit systems, to help these cities plan, a workshop with senior staff of DANE to modernize, and operate their own transit networks. assess its capacities in knowledge sharing,  Moroccan officials engaged in a study tour to develop a corporate vision, and formulate an Colombia to learn about education assessment models, action plan, which supports forming a to help Morocco implement a new quality assistance system for universities. knowledge sharing task force and  Honduran officials visited Colombia to learn about strengthening institutional policies. Through approaches for recognizing and titling land of 2014, WBI will continue to work with DANE indigenous groups, to help foster a consensus on to build its knowledge sharing capacity, reforms and policies in Honduras. including by advising on how to capture and package its operational lessons and experiences, training staff on a results-oriented methodology for designing knowledge exchanges, and piloting new approaches and tools through an exchange with a peer institution in the region. 37 Annex 9. Summary of Colombia Client Survey 2013 1. In May and June 2013, 271 stakeholders participated in the World Bank’s client survey in Colombia to provide their opinion on the general development issues facing Colombia, the perception of the World Bank Group in Colombia, and its current relevance and future role. The last country surveys took place in FY ’07 and FY ’11. Overall Improvements over Previous Surveys 2. This year’s positive rating (6.99 out of 10) of the World Bank’s overall effectiveness in Colombia is similar to that of the FY ’11 country survey, but it represents a significant increase from the score of 6.29 which the World Bank Group received in the FY ’07 survey. From FY ’07 to FY ’13, stakeholders have also been more in agreement that the institution currently plays a relevant role in development in Colombia, and that its work aligns with what are considered the country’s development priorities. The survey suggests that not only has the World Bank Group been able to achieve development results in Colombia, but it continues to move in the right direction. 3. As evidenced by mean ratings from 6.1 and above out of 10, the World Bank Group is perceived as having had a positive impact on the three engagement areas of the CPS. The key survey takeaways are outlined below first by thematic area, then by engagement type. Key Findings by CPS Theme Engagement Area I: Expanding Opportunities for Social Prosperity 4. The World Bank Group’s effectiveness in the area of social protection and citizens’ security has received a score of 6.13. This represents a steady upward trend, increasing from a mean rating of 5.84, 6.06 to 6.13 across the last three surveys, including that of FY ’13. However, out of all CPS themes, the World Bank received the lowest ratings in terms of having a positive impact on this particular area of development. Since the FY ’11 country survey, an increasingly larger number of respondents have also indicated that increasing employment and income generating opportunities would contribute to poverty reduction. 5. According to this year’s survey, stakeholders consider access and quality of education the key development priority in Colombia, and the second most important contributor to poverty reduction. Respondents gave significantly higher ratings of effectiveness (6.7) for the World Bank Group having an impact on “Opportunity in Education” compared to respondents in the FY ’11 country survey (6.2). Peace and development has also emerged as another top development priority, as identified by stakeholders. Engagement Area II: Sustainable Growth with Enhanced Climate Change Resilience 6. Under this thematic area, the World Bank Group has been rated as most effective on its impact on sustainable urban development, with a score of 6.9 out of 10. Looking forward, the survey suggests that the World Bank Group can be of greater value in Colombia by focusing most of its resources on infrastructure development. Engagement Area III: Inclusive Growth and Enhanced Productivity 7. Out of the three CPS themes, the World Bank Group is seen as most effective at having a positive impact on this area of development in Colombia. Consistent economic growth has emerged as the second most important factor contributing to shared prosperity, as identified by stakeholders. It is worth highlighting the score of 7.0 for its capacity to create a positive impact in the area of fiscal, financial and social risk management. 38 Key Findings by Type of Engagement 8. While respondents are in agreement that the combination of financial, knowledge and convening services that the World Bank Group currently provides meets the national development needs of Colombia to a significant degree, 51% of respondents believe that the World Bank Group should offer more knowledge services. Only 22% of respondents believe that it should provide more financial services, and 13% more convening services. 9. As opposed to examining them separately, the survey’s methodology categorized knowledge and convening services as a single type of engagement. Knowledge and convening services are increasingly seen as a source of relevant information on global good practices, as demonstrated by the respondents’ mean ratings of 6.96 and 7.63 in FY ’11 and FY ’13, respectively. They are also favorably seen as relevant to Colombia’s development priorities (7.3 on a scale of 10) and adaptable to its specific development challenges and country circumstances (7.0 out of 10). Similarly, the survey’s respondents agree to a strong extent (6.8) that the World Bank Group’s financial instruments meet the needs of Colombia. Only the stakeholders from project management units, the private and financial sector, and private banks indicated that the World Bank should provide more financial than knowledge and convening services. 10. Finally, 44% of respondents think that there is not enough public disclosure of the World Bank’s work. Participants in the survey were drawn from among the office of the President; the office of a Minister; the office of a Parliamentarian; employees of a ministry, ministerial department, or implementation agency; consultants/contractors working on World Bank Group- supported projects/programs; project management units (PMUs) overseeing implementation of a project; local government officials or staff; bilateral agencies; multilateral agencies; private sector organizations; private foundations; the financial sector/private banks; NGOs; community- based organizations (CBOs); the media; independent government institutions; trade unions; faith- based groups; academia/research institutes/think tanks; and the judiciary branch. 39 Annex 10. World Bank Engagement in Post-Conflict and Peace Building (late 1990s-2016) 1990s 2008-2011 2012-2016 Initial Bank Engagement Peace in an Environment of Consolidating Peace and Citizen’s Insecurity Security  Magdalena Medio Regional Peace  Peace and Development Project  Peace and Development Project AF (P051306) and Development Project (LIL) (P051306)  Antioquia Upper Secondary Education Project  Peasant Enterprise Zones Project  Antioquia Upper Secondary Education (subcomponent) (P052608) (LIL) Project (subcomponent) (P052608)  Rural Education Project subcomponent (P082908)  Sierra Nevada Sustainable  Rural Education Project subcomponent  Protection of Land and Patrimony of IDPs – AF Financial Development Project (LIL) (P082908) (P115630)  Rural Productivity Project  Afropaz  Science, Technology and Innovation Project  Strengthening Human Rights in Peace (P117590) – social innovation component and Development Zones  Technical Support to Consolidating Peace through  Gender and IDP: Integrating Gender Victims Reparations (SPF) into Peace and Development  Human Rights and Development Approach to the  Protection of Land and Patrimony of Colombia Victim’s Reparation Program IDPs (P115630)  Pipeline: MDTF  Protection to Asset-base of the  Analysis of the Demobilization and  Colombia Fragility Assessment Vulnerable Poor (PCF) Reintegration of Ex-Combatants  Korean TF: (a) state-regional coordination  Peace Education (PCF)  Assessment of Vulnerable Groups mechanisms for peace-building, (b) reintegration of  Cost of Victim Reparations ex-combatants; (c) sustainability and fiscal impact  Impact of the Armed Conflict of peace agreement funding. on the Education System  Pipeline: MDTF  How Educational Systems Build  PA Peace Consolidation through Sustainable Social Resilience and Human Development (P144491). Subtasks: ‐ Pipeline: TF Hikari. Art and Music initiatives to increase equality of opportunities for vulnerable youth. ‐ Empowerment and social and education inclusion of young women victims of violence (P052608) Knowledge ‐ Access to Opportunities for Young People in Colombia (P051306) ‐ Soccer Together (Kokoro Futbol con Corazón) (P145734) ‐ Land Governance Assessment (LGAF) (P145380) ‐ Evaluation of the Protection of Land and Patrimony of IDPs project (P115630) ‐ Advisory Services for the Implementation of the National Policy of Citizen Security ‐ Assessing the Impact of Urban Infrastructure Service on Crime and Violence in Bogota ‐ Strategy Note: Forced Displacement. ‐ Strategy Note: Art and culture as an instrument to build peace ‐ Strategy Note: Forgiveness and Reconciliation approach to consolidate peace in Colombia. ‐ Strategy Note: Teje la Vida Program from the Fundación Mi Sangre  Education for Peace Partnership  Education for Peace Partnership.  International Conference on Evidence-based Coordination with the  International Conference on Education Approaches to Citizen Security. Convening international DDR Community for Peace Experiences  International Seminar on evidence-based best  International Conference on practices on Art and Music interventions with Education for Peace Experiences vulnerable children and young people.  South-South Citizen Security Knowledge Exchange Program 40 Annex 11. IFC Committed and Outstanding Portfolio Statement of IFC's Committed and Outstanding Portfolio Amounts in US Dollar Millions Accounting Date as of : 03/31/2014 Com m itm ent Institution Com m IFC Com m Part Out IFC Out Part Fiscal Year Short Nam e LN ET QL + QE GT RM ALL ALL LN ET QL + QE GT RM ALL ALL 2009 Abocol 9.0 - - - - 9.0 - 9.0 - - - - 9.0 - 2010 Alqueria 11.7 5.0 - - - 16.7 - 11.7 5.0 - - - 16.7 - 2011 Ashmore ColInfra - 20.0 - - - 20.0 - - 13.7 - - - 13.7 - 2014 Avantel BVI - 15.0 - - - 15.0 - - 15.0 - - - 15.0 - 2010/ 2012 BANCOLOMBIA I - - - 25.4 - 25.4 - - - - 1.4 - 1.4 - 2002/ 2006 BCSC - 25.0 - - - 25.0 - - 25.0 - - - 25.0 - 2010 Bancamia - 13.4 - - - 13.4 - - 10.0 - - - 10.0 - 2009 Bogota Muni 34.5 - - - - 34.5 - 34.5 - - - - 34.5 - 2012 CEmpaques - 7.2 - - - 7.2 - - 7.2 - - - 7.2 - 2002/ 2003/ 2004/ 2005/ 2006/ 2007/ CHMC - - - 0.2 - 0.2 - - - - - - - - 2008 2009 Caruquia 5.0 - 1.1 - 0.7 6.8 - 5.0 - 1.1 - 0.1 6.2 - 2014 Colombian Mines - 0.8 - - - 0.8 - - 0.8 - - - 0.8 - 2008 Compas 7.9 - - - - 7.9 - 7.9 - - - - 7.9 - 2014 Corpbanca Colomb - - 42.5 - - 42.5 - - - 42.5 - - 42.5 - 2011 Covicredit 5.0 - - - - 5.0 - - - - - - - - 2013 Credivalores 23.3 - - - - 23.3 - 23.3 - - - - 23.3 - 2009 DARP COVINOC SA - 3.3 - - - 3.3 - - 3.3 - - - 3.3 - 2010 DARP SPV Reinteg 22.5 11.8 7.2 - - 41.5 - - 1.4 1.6 - - 3.0 - 2011 DARP SPV Covinoc - - 13.4 - - 13.4 - - - 13.4 - - 13.4 - 2014 DARP SPV CC 47.5 12.0 - - - 59.5 47.5 19.0 4.5 - - - 23.5 19.0 2003/ 2004/ 2005/ 2006/ 2007/ 2009/ DAVIVIENDA I - 28.8 - - - 28.8 - - 28.8 - - - 28.8 - 2014 2012 EEPP DE MEDELLIN 22.5 - - - - 22.5 280.4 22.5 - - - - 22.5 280.4 2010 EI 3.0 - 2.0 - - 5.0 - 3.0 - 2.0 - - 5.0 - 2009/ 2010 EcoOro - 3.4 - - - 3.4 - - 3.4 - - - 3.4 - 2008 Finandina - 8.5 - - - 8.5 - - 8.5 - - - 8.5 - 2012 Fundacion Cardio 30.0 - - - - 30.0 - - - - - - - - 2013/ 2014 GFO 4.9 - - - - 4.9 - 4.9 - - - - 4.9 - 2009 Giros y Finanzas - - 2.8 - - 2.8 - - - 2.8 - - 2.8 - 2009 Guanaquitas 4.9 - 1.2 - 0.7 6.8 - 4.9 - 1.2 - - 6.1 - Multiactivos - 2.6 - - - 2.6 - - 2.6 - - - 2.6 - 2014 Pacific Infra - 56.3 - - - 56.3 - - 56.3 - - - 56.3 - 2013/ 2014 PetroNova - 8.1 - - - 8.1 - - 8.1 - - - 8.1 - 2007 Procafecol - 12.0 - - - 12.0 - - 4.0 - - - 4.0 - 2014 Propal S.A. - 3.4 - - - 3.4 - - 2.6 - - - 2.6 - 2008 RIB - 44.6 - - - 44.6 - - 44.6 - - - 44.6 - 2013 Recaudo Bogota 29.0 - 22.9 - 7.4 59.3 - 12.5 - 22.9 - 3.0 38.5 - 2010 SMITCO 14.9 - - - - 14.9 - 14.9 - - - - 14.9 - 2013 SUAM Col S.A. - 121.8 - - - 121.8 - - 121.8 - - - 121.8 - 2012 Sac-Be Col 12.7 - - - - 12.7 - 3.2 - - - - 3.2 - 2011/ 2014 TCBuen 44.0 - 8.7 - - 52.7 174.8 32.0 - 8.7 - - 40.7 132.8 2013 TRIADA SAS - - 10.0 - - 10.0 - - - - - - - - 2010 Termoflores 35.9 - - - - 35.9 6.8 35.9 - - - - 35.9 6.8 2008 Tribeca Fund I - 15.0 - - - 15.0 - - 13.4 - - - 13.4 - 2010 Uniminuto 5.3 - - - - 5.3 - 5.3 - - - - 5.3 - 2013 VM Colombia - - 14.0 - - 14.0 - - - 2.4 - - 2.4 - Total Portfolio 373.3 417.9 125.8 25.6 8.8 951.4 509.5 249.3 379.9 98.5 1.4 3.1 732.3 439.0 Total Portfolio incl particiapnts 1,460.86 41 Annex 12. IFC Investment Operations Program 2011 2012 2013 2014* Original Commitments (US$m) IFC and Participants 246.00 510.51 149.90 314.69 IFC's Own Accounts only 129.00 186.51 149.90 196.69 Original Commitments by Sector (%)- IFC Accounts only ACCOMMODATION & TOURISM SERVICES 6.81 COLLECTIVE INVESTMENT VEHICLES 15.5 CONSTRUCTION AND REAL ESTATE 6.67 ELECTRIC POWER 13.78 FINANCE & INSURANCE 58.14 63.33 62.32 53.13 HEALTH CARE 16.08 INFORMATION 16.01 7.63 OIL, GAS AND MINING 9.99 0.48 PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES 5 TRANSPORTATION AND WAREHOUSING 26.36 38.77 Total 100 100 99.99 100.01 Original Commitments by Investment Instrument (%) - IFC Accounts only Equity 15.5 9.99 42.8 Guarantee 0 63.33 6.95 Loan 23.26 36.3 45.36 35.59 Quasi equity*** 6.67 Quasi loan 30.23 26.02 21.61 Risk product 31.01 0.38 5 Total 100 100.01 99.99 100 * Data as of April 01,2014 42 Annex 13. Colombia Gender Score Card The indicators on this scorecard are a combination and slight modification of the IDA 16 and Corporate Scorecard Results Framework for Gender and the Gender Mainstreaming Indicators and Targets from the Implications of the WDR 2012 paper . The scorecards show the latest data available. There are 2 parts to the scorecard: the top part evaluates country performance and development results relative to LAC and UMC averages, while the bottom section examines the Bank's operational progress in regards to regional averages in gender mainstreaming. Summary Paragraph In the last 10 years, Colombia has made progress on nearly every indicator pertinent to measuring gender equality. Colombia has made significant gains in reducing maternal mortality since 2000; but, despite higher levels of maternal care (attended births and prenatal care indicators), maternal mortality rates in Colombia still exceed both UMC and LAC averages. Primary completion rates for both boys and girls are both over 100% for the relevant age groups, and female to male enrollment ratios for primary school are close to gender parity (96). Like many other LAC countries, however, female to male secondary level enrollment ratio in Colombia shows a significant and persistent gender gap favoring girls, with nearly 10% more girls enrolled than boys. With respect to economic opportunity, Colombia has made significant gains in its female labor participation rate (49% in 2000 to 56% in 2010) and has seen an increase in the ratio of female to male labor force participation of over 10% in 10 years (59 in 2000 to 70 in 2011). Work still needs to be done to enable both men and women increased access to financial services, and to continue to reduce unemployment rates for women, which are around 1.6 times that of men for women of all ages. Adolescent fertility rates have dropped 25% in 10 years (94 births per 1,000 15‐19 year olds to 70 in 2011), but are still more than double the UMC average of (31 births per 1,000 women, 15‐19 years). Colombia's FY12 CAS scored a "Highly satisfactory" rating (3 on a 0‐3 scale) and identified gender priorities in labor market segmentation, domestic violence and early childbearing. However, work needs to be done to improve individual project ratings. In FY12, the projects that were gender informed (2 of 3) failed to include gender analysis or gender‐specific actions. In FY13, the 3 projects were gender‐informed but none of them were informed in all the three dimensions (two in 2 dimensions and one in only 1 dimension). In comparison with the FY10 CAS, overall percentage of projects that were gender informed in at least one dimension increased from 40% (4 of 10 project s in FY10‐11) to 83% (5 of 6 projects in FY12‐Present).  Projects gender informed in at least two dimensions increased slightly from 30% to 33% as well.  COUNTRY  Country Performance: Endowments COUNTRY Year Year UMC~ Year LAC^ Year BASELINE Primary completion rate, female (% of relevant age group) *MDG 2 111 2011 98 2000 99 2010 103 2011 Primary completion rate, male (% of relevant age group) *MDG 2 112 2011 93 2000 97 2010 100 2011 Ratio of female to male primary level enrollment (%) *MDG 3 96 2011 100 2000 100 2011 97 2011 Ratio of female to male secondary level enrollment (%) *MDG 3 109 2011 110 2000 104 2011 107 2011 Maternal mortality ratio (modeled est. per 100,000 births) *MDG 5 92 2010 130 2000 64 2010 82 2010 Births  attended by skilled health staff (% of total) 99 2011 86 2000 96 2009 90 2010 Pregnant women receiving prenatal care (%) 97 2010 91 2000 94 2009 96 2009 Prevalence of HIV, females  (% ages  15‐24) *MDG 6 0.1 2011 no data 1 2009 0.4 2011 COUNTRY  Country Performance: Economic Opportunity COUNTRY Year Year UMC Year LAC Year BASELINE Labor participation rate, female (% of female population 15+) 56 2011 49 2000 59 2011 54 2011 Ratio of female to male labor participation rate (%) *MDG 3 70 2011 59 2000 77 2011 68 2011 Account at a formal financial institution, female (% age 15+) 25 2011 no data 53 2011 35 2011 Account at a formal financial institution, male (% age 15+) 36 2011 no data 62 2011 44 2011 Unemployment, female (% female labor force) 15 2010 21 2000 no data 10 2009 Unemployment, youth female (% of female labor forces  age 15‐24) 30 2008 42 1999 no data 19 2009 Ratio of female to male youth unemployment (% ages  15‐24) 164 2008 130 1999 no data 152 2008 COUNTRY  Country Performance: Agency COUNTRY Year UMC Year LAC Year BASELINE Adolescent fertility rate (births  per 1,000 women, ages  15‐19) 70 2011 94 2000 31 2011 70 2011 Proportion of seats  held by women in national parliaments  (%) 12 2012 12 2000 22 2012 25 2012 Sources: World  Bank World Development Indicators (WDI), World Bank Gender Statistics (WBG). * Country Baseline provides  a  simple point of reference for indicator  data  available within a  period of 10 ‐15  years ^ LAC = Includes  the 41 countries  (all  income levels) in Latin America  and the Caribbean, as  classified by The World Bank ~ UMC = Includes  the 54  countries  which are classified by The World Bank as  upper  middle income (average of $4,036–12,475 GNI  per  capita, 2011) World Bank Portfolio ‐ FY12" COUNTRY LAC PROJECT SCORES Latest CAS/CPS/ISN rating Highly Satisfactory (2012) Highly Satisfactory (2012) Year Project Sector Rating Share of new projects  that are gender‐informed (FY11) 0/3 0 35/44 80% FY11 P117590 ED 0 Share of new projects  that are gender‐informed (FY12) 2/3 67% 43/75 57% FY11 P111479 WAT 0 Share of new projects  that are gender‐informed (FY13) 3/3 100% FY11 P110671 UD 0 %  Projects Gender‐Informed  by  Year 90% 0/1 0 83% FY12 P115639 ENV 0 100% 100% 80% 70% FY12 P123267 EP 1 70% 66% 66% 60% FY12 P117947 TR 1 57% 50% 43% 43% 40% FY13 P126583 UD 1 40% 33% 33% 30% 30% 1/4 0.25 FY13 P129465 EP 2 14% 17% 20% 10% FY13 P130972 UD 2 0% 0% 0% 0% 0% 0% 0% 10% 0% Not gender At least  1 dimension At least  2 All 3 dimensions 0% informed dimensions None At least  1 At Least  2 All 3 FY10 FY11 FY12 FY13 CAS FY  10‐11 CAS FY  12‐Present " All  data  in the World Bank Portfolio section are taken from PRMGE data 43 Annex 14. Country at a Glance Colombia at a glance 3/10/14 Latin Upper Ke y D e v e lo pm e nt Indic a t o rs A merica middle Co lo mbia & Carib. inco me Age distribution, 2012 ( 2 0 12 ) Male (..) Female (..) P o pulatio n, mid-year (millio ns) 47.7 581 2,391 75-79 Surface area (tho usand sq. km) 1,142 19,461 43,472 60-64 P o pulatio n gro wth (%) 1.3 1.2 0.8 Urban po pulatio n (% o f to tal po pulatio n) 76 79 61 45-49 30-34 GNI (A tlas metho d, US$ billio ns) 334.8 5,273 16,661 15-19 GNI per capita (A tlas metho d, US$ ) 7,020 9,070 6,969 GNI per capita (P P P , internatio nal $ ) 9,990 11,787 10,621 0-4 10 5 0 5 10 GDP gro wth (%) 4.2 2.9 5.0 percent of total population GDP per capita gro wth (%) 2.8 1.7 4.2 ( m o s t re c e nt e s t im a t e , 2 0 0 5 – 2 0 12 ) P o verty headco unt ratio at $ 1 .25 a day (P P P , %) 8 6 8.4 Under-5 mortality rate (per 1,000) P o verty headco unt ratio at $ 2.00 a day (P P P , %) 16 10 19.5 Life expectancy at birth (years) 74 74 74 60 Infant mo rtality (per 1,000 live births) 15 16 16 Child malnutritio n (% o f children under 5) 3 3 3 50 40 A dult literacy, male (% o f ages 15 and o lder) 93 92 96 30 A dult literacy, female (% o f ages 15 and o lder) 94 91 91 Gro ss primary enro llment, male (% o f age gro up) 109 115 111 20 Gro ss primary enro llment, female (% o f age gro up) 105 11 1 110 10 0 A ccess to an impro ved water so urce (% o f po pulatio n) 91 94 93 1990 1995 2000 2012 A ccess to impro ved sanitatio n facilities (% o f po pulatio n) 80 81 74 Colombia Latin America & the Carib bean N e t A id F lo ws 19 8 0 19 9 0 2000 2 0 12 (US$ millio ns) Net ODA and o fficial aid 90 89 186 764 Growth of GDP and GDP per capita (%) To p 3 do no rs (in 2012): United States -14 -19 105 327 10 France 1 18 9 125 Germany 20 25 13 49 5 A id (% o f GNI) 0.3 0.2 0.2 0.2 0 A id per capita (US$ ) 3 3 5 16 -5 Lo ng- T e rm E c o no m ic T re nds -10 95 05 Co nsumer prices (annual % change) 26.5 29.1 9.2 3.2 GDP implicit deflato r (annual % change) 27.6 26.1 31.8 2.6 GDP GDP per capita Exchange rate (annual average, lo cal per US$ ) 47.3 502.3 2,087.7 1,797.8 Terms o f trade index (2000 = 100) .. .. 100 160 19 8 0 – 9 0 19 9 0 – 2 0 0 0 2 0 0 0 – 12 (average annual gro wth %) P o pulatio n, mid-year (millio ns) 26.9 33.3 39.9 47.7 2.1 1.8 1.5 GDP (US$ millio ns) 33,401 40,274 99,887 369,606 3.7 2.8 4.5 (% o f GDP ) A griculture 19.9 16.7 8.9 6.5 2.9 -2.7 2.0 Industry 32.5 37.9 29.4 37.5 5.0 1.5 4.6 M anufacturing 23.9 20.6 15.0 13.0 3.5 -2.5 3.6 Services 47.6 45.4 61.6 56.0 2.9 4.1 4.7 Ho useho ld final co nsumptio n expenditure 70.2 66.4 69.2 61.5 5.1 1.1 4.1 General go v't final co nsumptio n expenditure 10.1 9.4 16.8 16.5 4.2 10.9 4.5 Gro ss capital fo rmatio n 19.1 18.5 14.9 23.4 1.4 2.1 10.6 Expo rts o f go o ds and services 16.2 20.6 15.9 18.3 7.5 5.0 5.1 Impo rts o f go o ds and services 15.6 14.8 16.8 19.7 0.4 9.3 9.6 Gro ss savings 19.6 21.6 13.4 18.9 No te: Figures in italics are fo r years o ther than tho se specified. .. indicates data are no t available. Develo pment Eco no mics, Develo pment Data Gro up (DECDG). 44 Colombia B a la nc e o f P a ym e nt s a nd T ra de 2000 2 0 12 Governance indicators, 2000 and 2012 (US$ millio ns) To tal merchandise expo rts (fo b) 13,1 36 59,922 To tal merchandise impo rts (cif) 10,655 56,224 Voice and accountability Net trade in go o ds and services 1,411 -563 Political stability Current acco unt balance 795 -11,907 Regulatory quality as a % o f GDP 0.8 -3.2 Rule of law Wo rkers' remittances and co mpensatio n o f emplo yees (receipts) 1,610 4,019 Control of corruption Reserves, including go ld 9,006 37,474 0.0 25.0 50.0 75.0 100.0 2012 Country's percentile rank (0-100) C e nt ra l G o v e rnm e nt F ina nc e higher values imply better ratings 2000 (% o f GDP ) Source: Worldw ide Governance Indicators (w w w .govindicators.org) Current revenue (including grants) 23.9 26.9 Tax revenue 14.5 18.7 Current expenditure 20.7 20.8 T e c hno lo gy a nd Inf ra s t ruc t ure 2000 2 0 12 Overall surplus/deficit -3.0 0.2 P aved ro ads (% o f to tal) 14.4 .. Highest marginal tax rate (%) Fixed line and mo bile pho ne Individual 35 33 subscribers (per 1 00 peo ple) 24 116 Co rpo rate 35 33 High techno lo gy expo rts (% o f manufactured expo rts) 7.7 5.2 E xt e rna l D e bt a nd R e s o urc e F lo ws E nv iro nm e nt (US$ millio ns) To tal debt o utstanding and disbursed 33,159 79,051 A gricultural land (% o f land area) 40 39 To tal debt service 5,008 15,503 Fo rest area (% o f land area) 55.4 54.4 Debt relief (HIP C, M DRI) – – Terrestrial pro tected areas (% o f land area) 19.7 21 .2 To tal debt (% o f GDP ) 33.2 21.4 Freshwater reso urces per capita (cu. meters) 51,242 44,861 To tal debt service (% o f expo rts) 29.7 21.9 Freshwater withdrawal (% o f internal reso urces) 0.6 0.6 Fo reign direct investment (net inflo ws) 2,436 15,649 CO2 emissio ns per capita (mt) 1.5 1.6 P o rtfo lio equity (net inflo ws) 17 3,778 GDP per unit o f energy use (2005 P P P $ per kg o f o il equivalent) 10.2 13.2 Composition of total external debt, 2012 Energy use per capita (kg o f o il equivalent) 647 671 IBRD, 7,706 IDA, 0 IMF, 1,135 Short-term, 10,687 Other multi- lateral, 8,478 Wo rld B a nk G ro up po rt f o lio 2000 2 0 12 (US$ millio ns) Bilateral, 3,311 IB RD To tal debt o utstanding and disbursed 1,920 7,706 Disbursements 266 427 P rincipal repayments 242 335 Private, 47,734 Interest payments 126 246 US$ millions IDA To tal debt o utstanding and disbursed 7 0 Disbursements 0 0 P riv a t e S e c t o r D e v e lo pm e nt 2000 2 0 12 To tal debt service 1 0 Time required to start a business (days) – 15 IFC (fiscal year) Co st to start a business (% o f GNI per capita) – 7.6 To tal disbursed and o utstanding po rtfo lio 107 974 Time required to register pro perty (days) – 13 o f which IFC o wn acco unt 84 751 Disbursements fo r IFC o wn acco unt 26 64 Ranked as a majo r co nstraint to business 2000 2 0 12 P o rtfo lio sales, prepayments and (% o f managers surveyed who agreed) repayments fo r IFC o wn acco unt 20 164 n.a. .. 34.5 n.a. .. 13.0 M IGA Gro ss expo sure 97 3 Sto ck market capitalizatio n (% o f GDP ) 9.6 70.9 New guarantees 0 0 B ank capital to asset ratio (%) 11.2 14.8 No te: Figures in italics are fo r years o ther than tho se specified. 3/10/14 .. indicates data are no t available. – indicates o bservatio n is no t applicable. 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