The World Bank Report No: ISR7011 Implementation Status & Results Costa Rica Costa Rica Catastrophe Deferred Draw Down Option (CAT DDO) (P111926) Public Disclosure Copy Project Name: Costa Rica Catastrophe Deferred Draw Down Option (CAT Program Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 09-Nov-2011 DDO) (P111926) Country: Costa Rica Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Nat. Risk Prevention and Emergency Management Comission (CNE), Ministry of Nat. Planning and Economic Policy (MIDEPLAN), Nat. Budget Office (Contraloria General de la Republica) Key Dates Board Approval Date 16-Sep-2008 Original Closing Date 30-Oct-2011 Planned Mid Term Review Date Last Archived ISR Date 09-Nov-2011 Effectiveness Date 05-Mar-2009 Revised Closing Date 30-Oct-2014 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The overall development objective of the proposed operation is to enhance the government#s capacity to implement its disaster risk management program for natural disasters. The program document proposes a US$65 million Catastrophe Deferred Drawdown Option (CAT DDO) as budget financing for the Government of Costa Rica (GoCR) for three years, renewable up to four times (for a total of 15 years). Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Highly Satisfactory Highly Satisfactory Overall Implementation Progress (IP) Highly Satisfactory Highly Satisfactory Public Disclosure Copy Implementation Status Overview The project continues achieving its objective to enhance the capacity of the Government to implement its disaster risk management program for natural disasters, and project implementation has progressed beyond the original expectations. The Bank has maintained an open dialogue on DRM issues with the country and verified that the operation is successfully supporting two key policy areas of the Costa Rica Disaster Risk Management Program: (a) strengthening of the institutional and legal framework, and (b) mainstreaming disaster risk in the National Development and Investment programs. In this regard, CNE is implementing institutional changes that will allow them to efficiently mainstream DRR in other sectors and develop DRM guidelines for municipalities; and also a new National Policy for Land Planning, which will help the country to reduce vulnerability conditions in the future, is one of the goals of the National Development Plan (NDP). The DRM agenda in the country has expanded to: (a) the integration of Disaster Risk Management in the Costa Rica Planning System, (b) the development of risk retention and Page 1 of 5 The World Bank Report No: ISR7011 transfer instruments, (c) the use of risk modeling tools (through the Central America Probabilistic Risk Assessment - CAPRA), and (d) the implementation of early warning systems (in some cases with the cooperation of the World Meteorological Organization - WMO). Results Public Disclosure Copy Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Strengthened regulatory and institutional Text Value Adoption of Law No. 8488 Law No. 8488 and its Enforcement of Law No. 8488 framework for DRM through an enhanced and its reglamento. reglamento are being and its reglamento. capacity of CNE to coordinate and incentivize enforced. After a DRM DRM activities. National Forum in 10/2009 a DRM National Plan was approved in 1/2010. The CNE institutional strengthening plan was already approved by MIDEPLAN and is being implemented. The GoCR issued the Decree Nº 36721- MP-PLAN for developing a standardized model for assessing vulnerability to disaster risk, applicable to natural hazards. Themodel will be mandatory for different purposes, including land planning decisions, the development of risk transfer instrumentsand public investment. Progress in the implementation of the National Plan for Risk Management will be discussed at the National ForumforRisk Management Public Disclosure Copy (July 2012) Date 16-Sep-2008 04-May-2012 30-Oct-2014 Comments Well-funded and functional Fondo Nacional de Text Value The Emergency Fund is well- Fund is well funded and The Fondo Nacional de Emergencias as part of the Disaster Risk funded and functioning. functioning as prescribed in Emergencias remains well- Management Program. Well-funded and Law 8488. It was estimated funded and functional as part functional Fondo Nacional de Emergencias as that US$8 million are the of the DRM Financial Strategy part of the Disaster Risk Manage required resources for the through 2011. emergency response phase in Page 2 of 5 The World Bank Report No: ISR7011 case of the occurrence of a disaster event. The mentioned estimation allows making a more efficient use of Public Disclosure Copy the emergency fund and other resources. As of April, 2012 the National Emergency Fund totaled US$10.682 millions (in June 2011, the fund totaled US$131.1 million). With the purpose of reducing the country financial vulnerability to adverse natural events, the GoCR is designing a Catastrophic Risk Transfer Vehicle, which will allow the country to improve the catastrophe insurance coverage of public assets, social housing and the infrastructure of roads and bridges. Date 16-Sep-2008 04-May-2011 30-Oct-2014 Comments Key line ministries annual programs include Text Value Disaster risk management Disaster risk management is Disaster risk management risk analysis and risk reduction initiatives. has been incorporated in the part of the new 2011-2014 remains in the National 2006-2010 National National Development Plan Development Plan and Development Plan. (in the sector of public included in the line ministries investment and annual programs. environmentand land planning). In this context, CNE is working jointly with the Ministry of Housing on a National Policy for Land Public Disclosure Copy Planning TheGoCR through MIDEPLAN has established a public investment legal framework that incorporates DRM analysis. The Costa Rican NationalWater and Sanitation Institution (AyA), is proactively taking into account the results of seismic risk modeling Page 3 of 5 The World Bank Report No: ISR7011 assessment (throughtheCentral America Probabilistic Risk Assessment – CAPRA) in its planning Public Disclosure Copy process. Date 16-Sep-2008 04-May-2011 30-Oct-2014 Comments An increased proportion of projects approved Text Value Incorporation of disaster risk Disaster risk analysis is still An increased proportion of by MIDEPLAN integrate DRM considerations. analysis in the MIDEPLAN part of the MIDEPLAN projects approved by screening of investment screening of investment MIDEPLAN have properly projects. projects. Thanks to integrated DRM mechanisms put in place by considerations. the GoCR, since 2011 100% of the new public investment projects registered in the Bank of Investment Projects, incorporate risk managementanalysis. MIDEPLAN developed methodological guidelines for incorporating risk analysis in public investment projects. Date 16-Sep-2008 04-May-2011 30-Oct-2014 Comments Data on Financial Performance (as of 10-Aug-2011) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P111926 IBRD-75940 Effective 16-Sep-2008 10-Nov-2008 05-Mar-2009 30-Oct-2011 30-Oct-2014 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P111926 IBRD-75940 Effective USD 65.00 65.00 0.00 33.98 31.02 52.00 Tranches Tranche 1 Description Prior actions were adopted, implemented or achived before Board approval. Amount (USD) Expected Release Date Actual Release Date Status Page 4 of 5 The World Bank Report No: ISR7011 65,000,000 31-Oct-2008 Pending Released Tranche Condition Description Status If Not Met If Delayed The macroeconomic framework and the DRM program are considered adequate for the Met Public Disclosure Copy purpose of this operation. Not Met Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Operations There are no related projects. Public Disclosure Copy Page 5 of 5