The World Bank Report No: ISR2109 Implementation Status & Results Peru Public Disclosure Copy Peru First Progrmmatic Environmental Development Policy Loan /DDO (P101471) Project Name: Peru First Progrmmatic Environmental Development Policy Program Stage: Implementation Seq.No: 4 Status: ARCHIVED Last Modified Date: 20-Jan-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 17-May-2010 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 Public Disclosure Copy Overall Ratings Previous Rating Current Rating 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 January 20, 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 ProgrammaticEnvironmental DPL (last of the series) was approved by the Board on August 5, 2010. Results Page 1 of 6 The World Bank Report No: ISR2109 Results Indicators Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Number of EIAs of large infrastructure/investment projects with INRENA reviewed 77 EIAs for MINAM has prepared an internal MINAM to review EIAs for at least potentially significant impacts reviewed by MINAM. projects (large and small) which draft regulation with technical and 10 large infrastructure/investment could have an impact on natural legal criterio to randomly review projects with potentially significant resources EIA approved by the competent impacts per year. Type Unit of Measure Date authorities. Date Custom Indicator Text 30-Sep-2008 Date 08-Sep-2012 Comment 05-Aug-2010 Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Increased NPA funding from various sources (including private sector) Resource allocation from various US$19.5 million US$20.2 million by at least US$ 2 million per year. sources to the National System of Date Date Natural Protected Areas (SINANPE) of US$14.2 million. 05-Aug-2010 08-Sep-2012 Type Unit of Measure Date Comment Comment Custom Indicator Text 30-Sep-2008 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Air quality data for the Lima-Callao Metropolitan Region is widely Data were not disseminated in real Regulations for a harmonized air Data found at senamhi.gob.pe published and disseminated (in real time). time quality monitoring network issued Date in July 2010. Public Disclosure Copy Date 08-Sep-2012 07-Jan-2008 Date Type Unit of Measure Comment Comment 05-Aug-2010 Custom Indicator Text Comment Page 2 of 6 The World Bank Report No: ISR2109 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Air quality contingency plans are developed. Pollution contingency plans do not Air quality contingency plans are Air quality contingency plans area exist in Peru, except in La Oroya developed for Arequipa, Ilo, and La developed and implemented in the Date Oroya; Clean Air Action Plans for 5 most polluted cities: Lima, Iquitos, Chimbote, Trujillo, and Ilo. Arequipa, Chimbote, Ilo and La Type Unit of Measure 28-Sep-2008 Oroya. Date Custom Indicator Text Comment Date 05-Aug-2010 Comment 08-Sep-2012 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Priority MELs are identified following the priority setting update of No MELs have been identified 119 priority MELs in 6 former At least 10 priority MELs are MELs inventory and resources for remediating priority public/private using technical criteria, and mining units in Hualgayoc, identified following the priority MELs confirmed. resources have not been Cajamarca. setting update of MELs inventory confirmed for public/private MEL Date and resources for remediating Type Unit of Measure remediation. priority public/private MELS have 05-Aug-2010 confirmed resources. Custom Indicator Text Date Comment Date 30-Sep-2008 Comment 08-Sep-2012 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Number of environmental participatory monitoring projects in the 35 community-based monitoring Continuous monitoring at 41 sites Environmental participatory mining sector. pilots are underway. as of June 2010. monitoring undertaken in at least Public Disclosure Copy Date Date 60 sites. 30-Sep-2008 10-Aug-2010 Date Type Unit of Measure Comment Comment 08-Sep-2012 Custom Indicator Text Comment Page 3 of 6 The World Bank Report No: ISR2109 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value All gas stations supplying diesel in Lima supply 50ppm diesel. Zero All stations in Lima and Callao now At least 30 percent of gas stations Date supplying clean diesel (with less in main cities (approx. 750) than 50 ppm of sulfur content). supplying clean diesel (with less 30-Sep-2008 than 50 ppm of sulfur content) by Date Type Unit of Measure Comment 2010. 05-Aug-2010 Custom Indicator Text Date Comment 08-Sep-2012 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Number of vehicles converted to natural gas and number of service 35,000 vehicles converted to NG in About 86,000 vehicles converted to At least 80,000 vehicles converted stations supplying natural gas in Lima. Lima. natural gas, to natural gas (NG) and 90 service Date Date stations are installed and operating in Lima. Type Unit of Measure 30-Sep-2008 05-Aug-2010 Date Custom Indicator Text Comment Comment 08-Sep-2012 Comment Indicator Baseline Current End Target Indicator Name Value Value Value Vehicle inspection and maintenance system operating in Lima. 6 inspection lanes operational in 585,000 vehicles inspected in Lima Vehicle inspection and Lima for heavy-duty vehicles. Date maintenance system operating in Date Lima (with at least 600,000 09-Nov-2009 vehicles inspected), and in each of Public Disclosure Copy Type Unit of Measure 30-Sep-2008 Comment the 3 largest cities (with at least Custom Indicator Text Comment 80,000 vehicles inspected). Date 30-Sep-2008 Comment Page 4 of 6 The World Bank Report No: ISR2109 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Percentage of anchoveta fleet under the quota system. Zero percent regulated by quotas. 100 percent regulated by fishing 100 percent of anchoveta fleet Date quotas. under the quota system. 30-Sep-2008 Date Date Type Unit of Measure Comment 05-Aug-2010 08-Sep-2012 Custom Indicator Text Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value Number of workers take advantage of economic incentives for leaving Zero Around 1300 fishermen left the At least 3000 workers benefit from the fisheries sector. sector as of June 2010. economic incentives for leaving the Date Date sector. 30-Sep-2008 30-Jun-2010 Date Type Unit of Measure Comment Comment 08-Sep-2012 Custom Indicator Text Comment 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 Public Disclosure Copy 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 Page 5 of 6 The World Bank Report No: ISR2109 Approval of the Legislative Decree No.1013 creating the Ministry of Environment (MINAM), Met establishing its organization and key functions. Not Met Public Disclosure Copy 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. 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 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. Public Disclosure Copy 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 Page 6 of 6