The World Bank Report No: ISR12925 Implementation Status & Results Peru Peru First Progrmmatic Environmental Development Policy Loan /DDO (P101471) Public Disclosure Copy Project Name: Peru First Progrmmatic Environmental Development Policy Program Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 04-Jan-2014 Loan /DDO (P101471) Country: Peru Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 17-Feb-2009 Original Closing Date 17-Feb-2012 Planned Mid Term Review Date 14-May-2013 Last Archived ISR Date 22-Jun-2013 Effectiveness Date 25-Sep-2009 Revised Closing Date 08-Sep-2015 Actual Mid Term Review Date 14-May-2013 Program Development Objectives Program Development Objective (from Program Document) The proposed Environmental Development Policy Loan Program (ENVDPL) aims at supporting the government's efforts to strengthen environmental governance and institutions in Peru, and mainstream environmental sustainability in the development agenda of key sectors (mining, fisheries, and urban transport and energy). The ENVDPL promotes improvements in health particularly of the poor who are exposed to the highest risks from environmental degradation. The ENVDPL is consistent with one of the key pillars of the 2006 Country Partnership Strategy (CPS) for Peru for FY07-FYI1 (and the 2009 CPS progress report) laying out a strategy to support the GoP to achieve its goals of sustained economic growth. The CPS recognizes the need to raise the profile of environmental issues in Peru by enhancing environmental public investments and strengthening the institutional framework. In support of the CPS# pillar (i) on economic growth, the ENVDPL program will contribute to making growth environmentally sustainable by supporting the environmental legal and institutional framework, biodiversity conservation, enhancing control over air and water pollution, improving the sustainability of the mining sector and the sustainable management of fisheries resources. In addition, by supporting the policy instruments of the newly created Ministry of Environment (MINAM), the ENVDPL would contribute to the modernization of the state institutions (CPS pillar iii). Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview The Peru First Programmatic Environmental Development Policy Loan/Deferred Draw-down Option was approved by the Board on February 17, 2009. As of May, 2013, USD $20 million had been disbursed. The Second Programmatic Environmental Development Policy Loan was approved by the Board on December 8, 2009; and the Third Programmatic Environmental DPL (last of the series) was approved by the Board on August 5, 2010. The GoP jointly with the task team has initiated an evaluation of the reforms supported by the DPLs and the preparation of the Implementation Completion and Results Report (ICR) for the Program. Results Page 1 of 5 The World Bank Report No: ISR12925 Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of EIAs of large infrastructure/ Text Value INRENA reviewed 77 EIAs for Congress established MINAM will review at least 10 Public Disclosure Copy investment projects with potentially significant projects (large and small) Servicio Nacional de EIAs of infrastructure/ impacts reviewed by MINAM. which could have an impact Certificacion Ambiental investment projects with on natural resources (SENACE) to strengthen potentially significant impacts. Peru's Environmental Impact Assessment regulatory framework. Date 30-Sep-2008 14-May-2013 14-May-2013 Comments Increased NPA funding from various sources Text Value Resource allocation from Resource allocation is higher US$20 million (including private sector) by at least US$ 2 various sources to the than US$ 2 million per year. million per year. National System of Natural Protected Areas (SINANPE) of US$14.2 million. Date 30-Sep-2008 14-May-2013 14-May-2013 Comments Air quality data for the Lima-Callao Text Value Data were not disseminated Data are disseminated in real Data are disseminated in real Metropolitan Region is widely published and in real time time time disseminated (in real time). Date 07-Jan-2008 14-May-2013 14-May-2013 Comments Air quality contingency plans are developed. Text Value Pollution contingency plans Air quality contingency plans Air quality contingency plans do not exist in Peru, except in area developed and area developed and La Oroya implemented for Lima-Callao implemented in the 5 most polluted cities: Lima, Arequipa, Chimbote, Ilo and La Oroya. Date 28-Sep-2008 14-May-2013 14-May-2013 Comments Public Disclosure Copy Priority MELs are identified following the Text Value No MELs have been identified More than 10 priority MELs At least 10 priority MELs are priority setting update of MELs inventory and using technical criteria, and have been identified following identified following the priority resources for remediating priority public/private resources have not been the priority setting protocol setting update of MELs MELs confirmed. confirmed for public/private established by the Ministry of inventory and resources for MEL remediation. Energy and Mines. remediating priority public/ private MELS have confirmed resources. Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Page 2 of 5 The World Bank Report No: ISR12925 Number of environmental participatory Text Value 35 community-based Environmental participatory Environmental participatory monitoring projects in the mining sector. monitoring pilots are monitoring undertaken in monitoring undertaken in at underway. more than 40 sites. least 60 sites. Public Disclosure Copy Date 30-Sep-2008 14-May-2013 15-May-2013 Comments All gas stations supplying diesel in Lima supply Text Value Zero Gas stations in Lima-Callao At least 30 percent of gas 50ppm diesel. supplying diesel with less stations in main cities than 50 ppm of sulfur content (approx. 750) supplying clean diesel (with less than 50 ppm of sulfur content) by 2010. Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Number of vehicles converted to natural gas Text Value 35,000 vehicles converted to More than 80,000 vehicles At least 80,000 vehicles and number of service stations supplying NG in Lima. converted to natural gas (NG) converted to natural gas (NG) natural gas in Lima. and more than 90 service and 90 service stations are stations are installed and installed and operating in operating in Lima. Lima. Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Vehicle inspection and maintenance system Text Value 6 inspection lanes operational Vehicle inspection and Vehicle inspection and operating in Lima. in Lima for heavy-duty maintenance system maintenance system vehicles. operating in Lima (with at operating in Lima (with at more than 600,000 vehicles least 600,000 vehicles inspected). inspected), and in each of the 3 largest cities (with at least 80,000 vehicles inspected). Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Percentage of anchoveta fleet under the quota Text Value Zero percent regulated by 100 percent of anchoveta 100 percent of anchoveta system. quotas. fleet under the quota system. fleet under the quota system. Public Disclosure Copy Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Number of workers take advantage of Text Value Zero As a result of Decree 1084, At least 3000 workers benefit economic incentives for leaving the fisheries 2046 workers left the fishing from economic incentives for sector. sector. Out of those workers, leaving the sector. 1713 had effectively benefited from the program (more than 1000 from advisory services and more than 1000 from formative itineraries) Page 3 of 5 The World Bank Report No: ISR12925 Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Public Disclosure Copy Data on Financial Performance (as of 08-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P101471 IBRD-76740 Effective 17-Feb-2009 08-Sep-2009 25-Sep-2009 17-Feb-2012 08-Sep-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101471 IBRD-76740 Effective USD 330.00 330.00 0.00 20.00 310.00 6.00 Tranches Tranche 1 Description One tranche in the amount of 20 million, and $310 million as DDO Amount (USD) Expected Release Date Actual Release Date Status 20,000,000 18-May-2009 15-Oct-2009 Pending Released Tranche Condition Description Status If Not Met If Delayed Approval of the Legislative Decree No.1013 creating the Ministry of Environment (MINAM), Met establishing its organization and key functions. Not Met Issuance of regulation establishing functions of the National Service for Natural Protected Met Areas (SERNANP). Not Met Issuance of the Supreme Decree No.002-2008-MINAM which sets the Environmental Met Quality Standards (ECAs) and Maximum Permissible Levels (LMPs) for air and water Not Met emissions. Public Disclosure Copy Approval of Legislative Decrees No. 1042 and No. 28526 which modify the MEL#s Law (No. Met 28271), and placed the onus for remediation on private holder (even after mining title/ Not Met concession has expired) and forbids granting new mining concessions to companies that have not remediated their MELs. Issuance of Supreme Decree No. 028-2008-EM which approved a Regulation defining Met public and community participation during the concession, exploration, exploitation, Not Met execution and closing of mining process. Enactment of Law No.28694 establishing reduction of sulfur in diesel to 50ppm by 2010. Met Not Met Page 4 of 5 The World Bank Report No: ISR12925 Issuance of Supreme Decree No. 016-2008-MTC, which approved a Regulation promoting Met vehicle conversion from gasoline to natural gas and establishment of stations supplying Not Met natural gas. Approval of Legislative Decree No. 1084 regulating anchoveta fishing quotas by vessel, and Met Public Disclosure Copy the social protection measures for displaced workers. Not Met Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Operations P101471-Peru First Progrmmatic Environmental Development Policy Loan /DDO, P116152-Second Programmatic Environmental Development Policy Loan, P118713-Peru Third Programmatic Environmental Development Policy Loan Public Disclosure Copy Page 5 of 5