The World Bank Report No: ISR6491 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: 6 Status: ARCHIVED Archive Date: 10-Aug-2011 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): Ministry of Energy and Mines, Ministry of Environment, Ministry of Production Key Dates Board Approval Date 17-Feb-2009 Original Closing Date 17-Feb-2012 Planned Mid Term Review Date Last Archived ISR Date 10-Aug-2011 Effectiveness Date 25-Sep-2009 Revised Closing Date 08-Sep-2012 Actual Mid Term Review Date 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 July, 2011, only 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 Implementation Completion and Results Report (ICR) for the Program is under preparation. Page 1 of 5 The World Bank Report No: ISR6491 Results Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Number of EIAs of large infrastructure/ Text Value INRENA reviewed 77 EIAs for MINAM has reviewed 150 MINAM will review at least 10 investment projects with potentially significant projects (large and small) EIAs. EIAs of infrastructure/ impacts reviewed by MINAM. which could have an impact investment projects with on natural resources potentially significant impacts per year. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments Increased NPA funding from various sources Text Value Resource allocation from The budget for 2012 was set US$20.2 million (including private sector) by at least US$ 2 various sources to the at approximately $16.5 million per year. National System of Natural million. Protected Areas (SINANPE) of US$14.2 million. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments Air quality data for the Lima-Callao Text Value Data were not disseminated Air quality data for Lima- Data can be found at Metropolitan Region is widely published and in real time Callao region is published and senamhi.gob.pe disseminated (in real time). disseminated (in real time). Date 07-Jan-2008 30-Mar-2012 08-Sep-2012 Comments Air quality contingency plans are developed. Text Value Pollution contingency plans Pollution contingency plans Air quality contingency plans do not exist in Peru, except in for Arequipa, Ilo and La Oroya area developed and La Oroya have been developed; and implemented in the 5 most Clean Air Action Plans have polluted cities: Lima, been established for Iquitos, Arequipa, Chimbote, Ilo and Chimbote, Trujillo and Ilo. La Oroya. Date 28-Sep-2008 30-Mar-2012 08-Sep-2012 Public Disclosure Copy Comments Priority MELs are identified following the Text Value No MELs have been identified 119 priority MELs in 6 former At least 10 priority MELs are priority setting update of MELs inventory and using technical criteria, and mining units in Cajamarca identified following the priority resources for remediating priority public/private resources have not been setting update of MELs MELs confirmed. confirmed for public/private inventory and resources for MEL remediation. remediating priority public/ private MELS have confirmed resources. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments Page 2 of 5 The World Bank Report No: ISR6491 Number of environmental participatory Text Value 35 community-based To date, 43 community Environmental participatory monitoring projects in the mining sector. monitoring pilots are participatory monitoring monitoring undertaken in at underway. committees are in place and least 60 sites. accounted for by MINEM. A Public Disclosure Copy guide to establish such committees is published in MINEM website. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments All gas stations supplying diesel in Lima supply Text Value Zero All stations in Lima-Callao are At least 30 percent of gas 50ppm diesel. now supplying clean diesel stations in main cities (with less than 50ppm of (approx. 750) supplying clean sulfur content). MINAM has diesel (with less than 50 ppm published a Ministerial of sulfur content) by 2010. Resolution that prohibits commercialization of diesel with more than 50ppm. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments Number of vehicles converted to natural gas Text Value 35,000 vehicles converted to By February 2012, At least 80,000 vehicles and number of service stations supplying NG in Lima. approximately 130,000 converted to natural gas (NG) natural gas in Lima. vehicles have been converted and 90 service stations are to natural gas. installed and operating in Lima. Date 30-Sep-2008 29-Feb-2012 08-Sep-2012 Comments Vehicle inspection and maintenance system Text Value 6 inspection lanes operational 556,626 vehicles inspected in Vehicle inspection and operating in Lima. in Lima for heavy-duty Lima-Callao; 47,688 in maintenance system vehicles. Arequipa; and 29,263 in La operating in Lima (with at Libertad least 600,000 vehicles inspected), and in each of the 3 largest cities (with at least Public Disclosure Copy 80,000 vehicles inspected). Date 30-Sep-2008 30-Mar-2012 30-Sep-2008 Comments Percentage of anchoveta fleet under the quota Text Value Zero percent regulated by 100 percent 100 percent of anchoveta system. quotas. fleet under the quota system. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments Page 3 of 5 The World Bank Report No: ISR6491 Number of workers take advantage of Text Value Zero Up to April 2012, 2,125 At least 3000 workers benefit economic incentives for leaving the fisheries fishermen have taken from economic incentives for sector. advantage of the economic leaving the sector. incentives for leaving the Public Disclosure Copy fisheries sector and have retired. Date 30-Sep-2008 30-Mar-2012 08-Sep-2012 Comments Data on Financial Performance (as of 15-Oct-2009) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P101471 IBRD-76740 Effective 17-Feb-2009 08-Sep-2009 25-Sep-2009 08-Sep-2012 Disbursements (in Millions) Project Loan No. 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. Public Disclosure Copy 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. 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. Page 4 of 5 The World Bank Report No: ISR6491 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 Public Disclosure Copy Not Met 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 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