The World Bank Report No: ISR11914 Implementation Status & Results Brazil Belo Horizonte Urban Development Policy Loan (P126749) Public Disclosure Copy Project Name: Belo Horizonte Urban Development Policy Loan (P126749) Program Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 21-Dec-2013 Country: Brazil Approval FY: 2013 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 14-Jun-2013 Original Closing Date 31-Dec-2014 Planned Mid Term Review Date Last Archived ISR Date Effectiveness Date Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The objective of the proposed operation is to support integrated and sustainable urban development and reduce social vulnerability in Belo Horizonte. 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 Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Implementation Status Overview The Development Policy Loan was prepared in Fall 2011, approved on June 14, 2013, and was approved by the Senate on December 3, 2013. The project processing was delayed due to the pending resolution of internal clearances within the client administration which took about a year to be finalized. Once these issues were addressed, the appraisal of the project was updated. Public Disclosure Copy The loan remains based in the Prior Actions that continue to guide municipal policy in Belo Horizonte, as evidenced by the passing of relevant legislation pertaining to each of the Actions. The indicators designated in the original loan also remain unchanged. The key changes are the extension of project targets from 2012 to 2013, as well as the closing date from June 2013 to December 2014 due to the delay in loan approval. The Prior Actions and the ongoing progress of the PBH in advancing these actions include the following: Prior Action 1. The PBH a) strengthened its urban legislation by incorporating several innovative instruments in matters of land use, management and urban planning to reduce social exclusion; and (b) supported the expansion of private sector provision of low-income housing to its population, as evidenced by passing the Land Use Law (updated in 2010) and Land Donation Law (2010) . The PBH remains committed to the implementation of these acts of legislation, and continues to advance in this area by undertaking a study to expand the adoption of the land use instruments put forward by the legislation, which will in turn be the basis for the proposal of a new law. Page 1 of 5 The World Bank Report No: ISR11914 Prior Action 2. The PBH enhanced resident ownership in its low-income housing program by developing and implementing a model for social inclusion and sustainable livelihood, which was evidenced by the institution of the Pré and Pós Morar program as well as its management team. The PBH has continued to support ownership in its low-income housing program by improving access to improved living conditions and basic service provision. Public Disclosure Copy Prior Action 3. The PBH launched a program to identify the most vulnerable families in its territory and has enabled the development of a vulnerable family-dedicated plan with tailored assistance,as met by the implementation of the Família Cidadã Cidade Solitária program, which has continued to define its manual of operation and methodology. The PBH has continued to advance in this area by elaborating a budget for 2013 to continue the program’s activities. Prior Action 4. The PBH improved its service delivery by establishing a functioning single point of access for comprehensive delivery of all municipal services, known as BH Resolve. The activities surrounding this program have increased progressively since the negotiations, as evidenced by the increase in the number of citizens attending the “one-stop-shop” offices created by the program (from 4,674 daily in 2010 to 5,069 daily in 2012). Prior Action 5. The PBH strengthened its legal and institutional framework for climate change mitigation and promotes sustainable growth policies through the passing of the Climate Change Law and support for the elaboration of a Municipal Climate Change Plan, which involved the implementation of the Rapid Assessment of City Energy (TRACE). The PBH has continued to advance in this area by presenting the TRACE assessment at the Local Governments for Sustainability World Congress, which was hosted by Belo Horizonte in June 2012. Prior Action 6. The PBH established a disaster management strategy and has put into operation a monitoring and alert system for high rainfall events in critical areas of its territory. This was carried out through the establishment of the Strategic Plan of the Civil Defense, the creation of a Contingency Plan for an early alert system, and ongoing activity reports from the system. Annual contingency plans have continued to be prepared under the guidance of an overall sectorial strategy. At the time of negotiations the 2012 Contingency Plan was already in effect, and the 2013 Plan was scheduled to be approved in July of this year. Prior Action 7. The PBH promoted long-term sustainable city development by establishing a results-based management model for long-term governance. met by the establishment of the BH Metas e Resultados, a permanent secretariat responsible for issuing the 2030 Vision plan. The first phase of BH Metas e Resultados achieved its stated goals for 2012, coinciding with the end of the last Administration. The new Administration is choosing to continue the program and is currently in the process of preparing new goals for the following administrative cycle. Prior Action 8. The PBH strengthened urban governance by broadening participatory mechanisms for budget execution, carried out through the formal recognition of the city’s 40 territories and the institutionalization of the Committee for Participatory Planning. The Committee’s efforts have resulted in 2,500 proposals from the territories as part of the participatory cycle which ended in June 2012. The PBH has continued to advance in this area by setting up a working group to assess proposals to be included in the 2013 budget. Prior Action 9. The PBH improved long-term fiscal sustainability by reforming its civil servant retirement and pension system, which involved contribution to the pension fund (BHPREV) by new civil servants. New civil servants have already begun to contribute to BHPREV. Public Disclosure Copy Results Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of households benefiting from land Number Value 8768.00 12155.00 regularization between 2009 and 2013. Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Page 2 of 5 The World Bank Report No: ISR11914 Number of new housing starts of formally Number Value 1470.00 5302.00 developed low-income housing units. Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under Public Disclosure Copy measurement Number of plots transferred by CAIXA Number Value 0.00 1470.00 Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Number of people remaining in social housing Percentage Value 75.00 85.00 developments after 2 years Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Number of families with a dedicated action plan Number Value 750.00 1500.00 implemented Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Percentage of female-headed households with Percentage Value 0.00 60.00 a dedicated action plan Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Number of rehabilitated homes as a result of Number Value 0.00 250.00 the program Date 01-Dec-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Number of services rendered at BH Resolve Number Value 94678.00 148500.00 units Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Public Disclosure Copy Percentage of users rating the services Percentage Value 0.00 90.00 rendered as good or excellent at BH Resolve Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 units Comments Indicator not yet under measurement Municipal Change Climate Action Plan that Number Value 0.00 1.00 integrates and benchmarks existing sector- Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 specific initiatives in solid waste, water, energy Comments Indicator not yet under and urban forestry sectors measurement Page 3 of 5 The World Bank Report No: ISR11914 Consolidated database of: (i) hydrological and Number Value 0.00 1.00 climate-related parameters; and (ii) disaster Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 events and damages. Comments Indicator not yet under Public Disclosure Copy measurement Number of monthly performance reports of the Number Value 0.00 12.00 early warning system issued Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Percentage of results completed yearly Percentage Value 33.00 70.00 according to schedule Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Comments Indicator not yet under measurement Effective demand of projects decided by the Percentage Value 0.00 25.00 community that are includeed in the city's multi- Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 year plan. Comments Indicator not yet under measurement Increase in the number of civil society Percentage Value 10.00 15.00 participants in participatory processes (OP Date 01-Jan-2011 07-Nov-2013 31-Dec-2013 Digital, OP Regional, PPR) Comments Indicator not yet under measurement Civil servants retirement plan actuarial deficit Amount(USD) Value 3466500000.00 3428500000.00 Date 01-Jan-2010 07-Nov-2013 31-Dec-2013 Comments Value in BRL as indicated in Indicator not yet under Value in BRL as indicated in the PD is R$6.933 billion. To measurement the PD is R$6.857 billion. To express value in USD, an express value in USD, an exchange rate of R$2 = US$1 exchange rate of R$2 = US$1 was used. was used. Public Disclosure Copy Data on Financial Performance (as of 17-Jun-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P126749 IBRD-81690 Not Effective 14-Jun-2013 31-Dec-2014 31-Dec-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P126749 IBRD-81690 Not Effective USD 200.00 200.00 0.00 0.00 200.00 0.00 Tranches Page 4 of 5 The World Bank Report No: ISR11914 Tranche 1 Description Tranche 1: USD 200,000,000.00 Public Disclosure Copy Amount (USD) Expected Release Date Actual Release Date Status 200 Pending Released Key Decisions Regarding Implementation No key decisions for disclosure. Restructuring History There has been no restructuring to date. Related Operations There are no related projects. Public Disclosure Copy Page 5 of 5