The World Bank Report No: ISR10827 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: 8 Status: ARCHIVED Archive Date: 22-Jun-2013 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 17-Nov-2012 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 task team is initiating 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: ISR10827 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 In April 2013, MINAM issued MINAM will review at least 10 Public Disclosure Copy investment projects with potentially significant projects (large and small) a Decree to determine the EIAs of infrastructure/ impacts reviewed by MINAM. which could have an impact work plan and deadlines to investment projects with on natural resources implement SENACE (Servicio potentially significant impacts. Nacional de Certificacion Ambiental). 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 can be found (in real Data are disseminated in real Metropolitan Region is widely published and in real time time) at http://www.senamhi. time disseminated (in real time). gob.pe/calidad_aire.php Date 07-Jan-2008 14-May-2013 14-May-2013 Comments Air quality contingency plans are developed. Text Value Pollution contingency plans In July 2010, the GoP Air quality contingency plans do not exist in Peru, except in enacted norms to establish a area developed and La Oroya harmonized national network implemented in the 5 most on air quality monitoring. The polluted cities: Lima, GoP developed contingency Arequipa, Chimbote, Ilo and plans for Arequipa, Ilo and La La Oroya. Oraya; and actions plans for Inquitos, Chimbote, Trujillo and Ilo. Public Disclosure Copy Date 28-Sep-2008 14-May-2013 14-May-2013 Comments Priority MELs are identified following the Text Value No MELs have been identified MELs inventory is up to date, At least 10 priority MELs are priority setting update of MELs inventory and using technical criteria, and comprising a total of 7.576 identified following the priority resources for remediating priority public/private resources have not been legacy sites in 2012. setting update of MELs MELs confirmed. confirmed for public/private inventory and resources for MEL remediation. remediating priority public/ private MELS have confirmed resources. Page 2 of 5 The World Bank Report No: ISR10827 Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Number of environmental participatory Text Value 35 community-based Participatory monitoring in 41 Environmental participatory Public Disclosure Copy monitoring projects in the mining sector. monitoring pilots are sites. monitoring undertaken in at underway. least 60 sites. Date 30-Sep-2008 14-May-2013 15-May-2013 Comments All gas stations supplying diesel in Lima supply Text Value Zero All gas stations supplying At least 30 percent of gas 50ppm diesel. diesel in Lima supply 50ppm stations in main cities diesel. (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 162,000 vehicles converted to At least 80,000 vehicles and number of service stations supplying NG in Lima. NG by May, 2013. converted to natural gas (NG) natural gas in Lima. and 90 service stations are installed and operating in Lima. Date 30-Sep-2008 14-May-2013 15-May-2013 Comments Vehicle inspection and maintenance system Text Value 6 inspection lanes operational 1,000,000 vehicles inspected Vehicle inspection and operating in Lima. in Lima for heavy-duty in Lima and Callao maintenance system vehicles. operating in Lima (with at least 600,000 vehicles 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 Public Disclosure Copy 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. 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 (1024 from advisory services and 995 Page 3 of 5 The World Bank Report No: ISR10827 from formative itineraries) by April, 2013. Date 30-Sep-2008 14-May-2013 15-May-2013 Public Disclosure Copy Comments 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 Public Disclosure Copy 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. 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. Page 4 of 5 The World Bank Report No: ISR10827 Enactment of Law No.28694 establishing reduction of sulfur in diesel to 50ppm by 2010. Met 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 Public Disclosure Copy 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