RESULTS IN THE LATIN AMERICA & CARIBBEAN REGION 2019 VOLUME 13 RESULTS IN THE LATIN AMERICA & CARIBBEAN REGION PAGE III Printed in: Washington, D.C., by The World Bank Group Produced by: The Latin America and Caribbean Regional Operations Services Unit in collaboration with the Latin America and Caribbean External Communications Unit Editor: Anjali Kishore Shahani Moreno Design: Miguel Barreto Cover photos: Jessica Belmont / World Bank Photo Collection Inner cover photos: Jessica Belmont / World Bank Photo Collection Country data: World Development Indicators / World DataBank 2017/2018 April 2019 TABLE OF CONTENTS FOREWORD .................................................................................................................................................... ix ARGENTINA Promoting Road Safety in Argentina.......................................................................................................... 1 Strengthening Subnational Service Delivery in Argentina................................................................. 7 Strengthening Argentina’s Federal Public Health System................................................................... 13 BOLIVIA Building Sustainable Cities in Bolivia.......................................................................................................... 19 BRAZIL Improving Performance of Electricity Distribution in Brazil............................................................... 25 Boosting Quality of Urban Transport Service in São Paulo ................................................................ 31 COLOMBIA Improving Water Supply and Sanitation Services in La Guajira, Colombia .................................. 39 COSTA RICA Strengthening Disaster Risk Management in Costa Rica..................................................................... 47 PAGE V EL SALVADOR Renovating the Public Health Care System in El Salvador................................................................... 53 GUYANA Improving Literacy and Numeracy Outcomes for Guyana’s early learners................................... 59 HAITI Education for All in Haiti.................................................................................................................................. 65 Rebuilding Haitian Infrastructure and Institutions ............................................................................... 71 JAMAICA Improving Energy Efficiency and Security in Jamaica ......................................................................... 79 MEXICO Improving Livelihoods and Mitigating Climate Change in Mexico’s Forest Communities...... 85 Improving Energy for Agricultural Competitiveness in Mexico........................................................ 91 PERU Promoting Rural Electrification in Peru...................................................................................................... 99 Improving Basic Education in Peru.............................................................................................................. 105 Improving the Quality of Higher Education in Peru.............................................................................. 111 Increasing Social Inclusion in Peru............................................................................................................... 117 PAGE VI RESULTS IN THE LATIN AMERICA & CARIBBEAN REGION PAGE VII PAGE VIII FOREWORD The World Bank’s work in Latin America and the Caribbean has one overriding priority: better lives for its people. All of us working at the Bank dream of a region where people can work and prosper. Where the next generation will live better than the current one; where kids get quality education and mothers quality health care; where individual circumstances at birth such as gender or being born in a rural area do not determine the chances of success in life; and where governments meet the demands of their population for transparency. We all dream of a region where poverty has been eliminated and the development process leads to shared prosperity. Indeed, the first decade of the 21st century saw significant progress towards the achievement of these dreams. In 2000, the share of the Latin American population living on less than $5.50 a day (a standard poverty measure in the region) was 43 percent. By 2013 it had fallen to 25 percent, which meant more than 100 million people escaped poverty over that period. This is very good news and Latin America should be recognized PAGE IX for it. However, that progress on the poverty front has not been maintained over the last 5 years. So, what needs to be done to return to the successful years of the 2000s? Poverty reduction is about creating many good paying jobs. To do this, it is essential that countries have high growth rates, that growth is inclusive so that everybody in society benefits, and that jobs pay good salaries, something which happens in sectors with high added value that put a premium on skills and human capital. On top of this, it is also key that the development process is sustained over time and can weather external shocks. Not surprisingly then, our efforts to end poverty in the region are grounded in a three-pillar strategy: promoting inclusive growth, investing in human capital, and building resilience. Our programs reflect this strategy. For example, under the first pillar we are supporting improvements in public transportation in Brazil by financing the expansion of the Sao Paulo metro line. These efforts have cut the travel time for residents of the low-income Vila Sonia neighborhood to cross the city from 60 minutes in 2002 to 32 minutes, enhancing productivity and benefiting the poor who overwhelmingly tend to rely on public transportation. The Sao Paulo Metro was the first passenger transport Public-Private Partnership in Brazil, highlighting the World Bank’s commitment to mobilizing the private sector to support inclusive development. In Bolivia, we also financed better mobility for residents of La Paz’s poorer El Alto neighborhood and backed the improvement of access to basic services and infrastructure, including sewerage connections, in other areas of the country. PAGE X Equally important is investing in human capital. Education and health are key to escaping poverty, particularly at a time when disruptive technologies are making it essential for people to adapt to a constantly changing work environment. The World Bank’s Human Capital Index aims to create conditions where all children arrive at school ready to learn, the time spent in school translates into better learning, and they can grow up to live and work as healthy, skilled, and productive adults. Our efforts in Peru are an example of our support for this purpose. There we helped the Ministry of Education develop capacity to evaluate student learning, teaching, and school leadership in basic education, benefitting 5.7 million students in the public-school system. We also helped develop and implement Peru’s higher education quality model. Both of these programs focused on the need to improve quality and deliver results in learning outcomes. Likewise, in Haiti we financed a tuition waiver program which helped to sharply boost school enrollment, backed a school health and nutrition program that reached nearly half a million students, supported teacher training, and reconstruction of 91 schools damaged by natural disasters. Our support for resilience activities is becoming even more important in the face of climate change. Natural disasters are a constant threat in our region, as we saw during the devastating 2017 hurricane season in the Caribbean. PAGE XI Our strategy is reflected in practice with, for example, the Deferred Drawdown Option loan which helped Costa Rica develop a strategy to bolster disaster risk financing and buffer the social and fiscal impacts of three natural disasters. In addition, we are supporting efforts to tackle the causes of climate change while improving productivity. In Mexico, a rural development project has helped over 1,800 agricultural businesses adopt better renewable energy or more efficient technologies, cutting carbon emission by over 6 million tons and making a major contribution towards Mexico’s international agreements on emissions reductions. In Jamaica, we supported the national energy policy to lower the dependence on imported oil. Renewable energy sources increased to 15.4 percent from 9 percent during the project implementation period. These are just a few of the examples in this booklet illustrating the work of the World Bank Group in Latin America. We look forward to continuing cooperation with the countries of the region and development partners in the design and implementation of innovative programs that deliver solutions. And above all we look forward to making our development dreams for the region a reality. Axel van Trotsenburg Regional Vice President Latin America and Caribbean Region The World Bank PAGE XII PAGE XIII La Ceiba y Corozal, Honduras. Photo: Jessica Belmont / World Bank PROMOTING ROAD SAFETY IN ARGENTINA ARGENTINA A MULTISECTORAL, MULTIJURISDICTIONAL APPROACH TO BUILDING INSTITUTIONAL CAPACITY AND STABILIZING TRAFFIC FATALITIES The government of Argentina has implemented an ambitious road safety project with technical assistance and a loan from the World Bank. A comprehensive set of activities throughout the country has strengthened Argentina’s institutional framework and management capacity for road safety and has helped stabilize traffic fatalities. Population: 44,271,041 GDP (billions): US$637.43 GNI per capita: US$13,030 IBRD/IDA lending commitments approved in FY18: 1.00 billion New and supplemental Projects approved in FY18: 4 PAGE 1 CHALLENGE management capacity by using the lead agency In 2011, the United Nations declared the “Decade model. For this project, the lead agency was ANSV of Action for Road Safety” to address the global (Agencia Nacional de Seguridad Vial). International public health crisis with the goal of stabilizing experience in high-income countries has shown that and reducing road traffic fatalities by 50 percent a coordinated approach to improving road safety by 2020. In Argentina, as in most Latin America management and implementing specific road safety countries, however, as motorization and motorized measures, under the responsibility of a lead agency, trips rose, so did traffic crashes and fatalities. For can succeed in stabilizing and eventually reducing 2010, the World Health Organization reported road traffic fatalities and injuries. Consequently, 5,094 road traffic deaths in Argentina. Due to the project implemented a comprehensive set of underreporting and differences in definitions, activities throughout the country. official national statistics were slightly lower, recording 4,950 traffic deaths, but both numbers The lead agency’s role in major project are seriously concerning. Further, the trend showed activities, such as establishing and deploying a no signs of a sustained downturn; road deaths national driver’s licensing system, conducting had consistently increased by around 20 percent communication and education campaigns, between 1980 and 2010. The coordination and and strengthening the National Road Safety institutional challenges were particularly acute Observatory (a monitoring and evaluation due to Argentina’s federal government structure. institution), were instrumental in establishing its A parallel increase in road traffic injuries also responsibility for national road safety. ANSV was required a strong, sustained response from civil thus able to ensure federal-level multijurisdictional society. and multisectoral coordination, smoothing the way for the efficient rollout of other project components, APPROACH such as police enforcement of key risk factors This project is one of the World Bank’s very few (e.g., speeding and seatbelt use) and improved stand-alone road safety projects, and its success infrastructure (e.g., roundabouts, school zones, was due largely to its focus on strengthening signalized intersections, and road markings) and then sustaining the country’s road safety . PAGE 2 2010 and a national trend of around 40 percent. For 2010, the World In the demonstration corridors, compliance with speed limits improved from 88.6 percent to 99.3 Health Organization percent over the course of the project. reported 5,094 road traffic deaths in The following outputs and intermediate results, Argentina. among others, contributed to achieving project goals: • The national driver’s license was gradually RESULTS implemented, with 15,656,358 high-standard Argentina’s traffic fatalities increased steadily until licenses issued as of June 2017. 2011, after which the number has remained fairly • 4,632 road safety campaigns were delivered stable (between 5,000 and 5,500 fatalities per (during the first half of 2017, 1,379 school year). This is a significant achievement: Given the teachers and 18,997 students were trained projected increase of traffic fatalities, 814 additional in 588 campaigns) as well as 310 training fatalities would have occurred in 2015 and 397 in workshops for traffic enforcement units (with 2016, as compared to actual events. 7,773 agents trained in the last four years of the project). Fatalities in the three demonstration corridors were reduced by 22.92 percent in 2017 and 30.91 percent • Road police and ANSV engaged in 180,000 in 2016; the average number of serious injuries partnership operations, and road injury in the three corridors was 14.62 percent lower in information systems were implemented at 50 2017 than in 2010 and 36 percent lower in 2016. hospitals. A review of the risk factors in the “Safe Corridors” • Technical support was provided to more than also provides interesting results. Seatbelt use in 147 jurisdictions in 19 of the 24 provinces, and the corridors increased and reached 95.5 percent 262 road safety plans had been developed as of in 2017, compared to a 67.2 percent compliance in June 2017. PAGE 3 The National Road Agency (ANSV), the Road Police (180,000 road police – ANSV joint operations) and Ministry of Health (50 hospitals with road injury information systems). Spain’s Dirección General de Tráfico (Directorate General of Traffic) provided knowledge transfer opportunities. The International Transport Forum (OECD) Road Police and ANSV partnership operations. Photo: World Bank supported Argentina’s participation in the International Road Traffic and Accident Database BANK GROUP CONTRIBUTION (IRTAD) group, which provided best practices for The World Bank, through the International Bank establishing ANSV’s observatory. for Reconstruction and Development (IBRD), provided $30 million to the project. This effort Civil society organizations throughout Argentina helped to reduce road traffic injuries and fatalities contributed to ANSV’s governance structure in Argentina’s territory by strengthening the through the Consultative Committee. nation’s road safety institutional framework and management capacity. Road crashes were Private concessionaires promoted safety significantly reduced in the selected pilot corridors. demonstrations in the three selected pilot corridors. PARTNERS BENEFICIARIES Collaboration of the government of Argentina, The Project has supported civil society along with the governments of provinces and organizations from Argentina to develop education, municipalities, supported the success of the public awareness and communication campaigns to multijurisdictional road safety agenda. contribute to a reduction in the number of deaths PAGE 4 Safe school paths. Photo: ANSVs and injuries due to traffic incidents. “Despite the a dynamic and participatory program, such as one fact that road accidents are the major cause of day pretending to be a legislator, we have managed death for 15-25-year-olds, road safety isn’t a major to get young people involved in the complex reality concern for young people”, notes Lucila de la Serna, of road safety”, commented the charity’s director president of the Conscientious Driver Association: Martín Galanternik. Families and Friends of the Victims of the Santa Fe Tragedy. The municipality of Urdinarrain in the province of Entre Ríos, with some 10,000 inhabitants, was one Under this project, the NGO drafted a book for of the most successful institutional beneficiaries of 2nd and 3rd graders and started working with the project thanks to the Incentive Fund’s support school teachers from La Pampa province, “soon, for implementing road safety policy and projects we will publish an Online version of the book so on the ground. By adhering to the national driver’s that it can reach a greater number of schools” licensing system, Urdinarrain was able to (i) explains de la Serna. The MINU Civil Association obtain funding to develop a road safety plan, (ii) is another charity that is working with secondary access capacity building for authorities involved schools through its Young People, Debating and in road safety through study tours to Spain’s Constructing Road Safety project, which is focused General Traffic Agency, and (iii) obtain support for on public schools in the city of Buenos Aires and in implementing low-cost traffic calming and school- five areas within Greater Buenos Aries. “Through zone road safety inspections. Urdinarrain was the PAGE 5 first municipality in the province of Entre Ríos the aim of replicating its successes later across to adhere to and implement the national driver’s the entire road network; Argentina is already licensing system and to enforce laws against implementing this expansion through a large drunk driving. According to local authorities, 99 public-private partnership (PPP) focused on rutas percent of motorcyclists now use helmets, and no seguras (safe routes), with six PPP road corridor traffic fatalities or serious injuries occurred in the contracts already signed that focus strongly on municipality in 2017. road safety. Finally, following regional requests to support replication of Argentina’s approach MOVING FORWARD to road safety management, the Bank is scaling The Road Safety Agency has been institutionalized up its efforts by providing financial and technical and strengthened and can now coordinate the support to create the initial framework and web- nation’s road safety agenda across jurisdictions; based platform for Observatorio Iberoamericano sustained financing has been allocated to ensure its de Seguridad Vial, which facilitates data transfer, continuation. In addition, the project was designed sharing, and analysis and links participating to demonstrate success in selected corridors, with countries to IRTAD resources. Safe infrastructure in National Road 2, one of the demonstrating corridors. Photo: Clarín Newspaper PAGE 6 STRENGTHENING SUBNATIONAL SERVICE DELIVERY IN ARGENTINA ARGENTINA MODERNIZING LA RIOJA’S WATER SUPPLY SYSTEM La Rioja, one of the poorest provinces in Argentina, succeeded despite a context of low capacity, at increasing local tax revenue collection, modernizing its public financial management system, increasing competition in public procurement, and improving efficiency in the management of irrigation water supply systems. Population: 44,271,041 GDP (billions): US$637.43 GNI per capita: US$13,030 IBRD/IDA lending commitments approved in FY18: 1.00 billion New and supplemental Projects approved in FY18: 4 PAGE 7 CHALLENGE the profitability of agricultural enterprises, they The province of La Rioja is located in the Argentine also hindered satisfaction of basic human and Northwest area, its landscape is arid to semi-arid, environmental needs. In addition, La Rioja’s and the dry climate receives annually less than government generated less than 6 percent of its 200 mm of precipitation. Agriculture is one of the total revenue locally, below the national provincial Province’s main economic activities, and in this average of 17 percent, mainly due to inefficiencies context efficient water management (for irrigation in tax administration. Shortcomings in budgeting and drinking) is essential. Rural water management and public procurement were also identified as has historically been weak and intermittent, constraints for expenditure effectiveness. Poor mainly due to deficiencies in planning, budgeting, public management hindered the impact of public coordination, and management of water systems services in priority areas, including rural water and resources. Such deficiencies not only reduced management. Talampaya National Park, La Rioja, Argentina. Photo: World Bank PAGE 8 sustainable if combined with visible improvements Rural water management in water service delivery. This combination would generate the necessary political capital and citizen has historically been support. Technical assistance was key to building weak and intermittent, local capacity to sustain the reforms. mainly due to deficiencies in planning, budgeting, RESULTS The project transformed the public sector in La coordination, and Rioja by paving the way to improvements in how management of water line ministries plan, design, and execute policies. systems and resources. It introduced concepts and methodologies for performance management and by improving capacities to mobilize own resources. The project APPROACH also helped close the gap between La Rioja The WB’s Public Sector Strengthening Program and other provinces in Argentina and opened was designed to combine cross-cutting horizontal opportunities for the province to gain access interventions in public administration (tax to innovative solutions being promoted by the administration, budgeting, and procurement) national government. with a focus on a specific sector. Improvements in tax administration were designed to create fiscal The target value for tax collection was exceeded, space, while outcomes from pilot interventions even when original targets were adjusted to reflect to improve access and management in the high the high inflation rates manifested during the visibility rural water increased political support life of the project (increasing from 159 million for fundamental, but less obvious back office Argentine pesos in 2011 to 1,645 million in 2017). cross-cutting public sector reforms. These reforms La Rioja made substantive progress toward included strategic sector planning and procurement improving budget predictability and performance- plans, regulations and institutional frameworks, based budgeting. This included implementation and agreed standards for service. The rationale was of program budgeting with effective physical that these cross-cutting reforms would be most PAGE 9 and financial indicators and an upgrade of the integrated financial management system. In Significant progress was addition, procurement practices were enhanced with the increased use of competitive bidding. observed in increasing the At project completion, in 2017, at least two key management efficiency provincial Secretariats had increased competitive in small-scale irrigation bidding by 44.5 percent. schemes and drainage Finally, policy coordination improved governance services. Improvements in rural water management, benefiting local include reduced time producers. Significant progress was observed in between irrigation turns, increasing the management efficiency in small- scale irrigation schemes and drainage services. from 30 to 15 days from Improvements include reduced time between 2012 to 2017, resulting irrigation turns, from 30 days in 2012 to 15 in in increased water flow 2017, resulting in increased water flow availability. Other improvements included increased water fee availability. collection, compliance with irrigation regulations, and the number of farmers trained in water access BENEFICIARIES management techniques (a total of 4,145 farmers The reforms and new institutional arrangements were trained at project closure in 2017). achieved through the WB-financed loan benefited the provincial tax, budgeting, procurement, and BANK GROUP CONTRIBUTION water agencies, as well as institutions participating The World Bank, through the International Bank as pilots. Project beneficiaries also included citizens for Reconstruction and Development (IBRD), in rural areas in La Rioja who directly benefited provided a loan of US$30 million to Argentina’s from improved access to and management of water Public Sector Strengthening Program. resources for both irrigation and potable uses. PAGE 10 MOVING FORWARD now permeates La Rioja’s provincial administration. Project achievements and outcomes resulted Other key examples are the consolidation of the in new long-lasting systems, regulations, and Water Management Agency under the mandate institutional frameworks, which are difficult to oversee water resource management and the to reverse, as they came to define the current institutionalization of processes for addressing day-to-day provincial government operations. social and environmental issues. Procurement, legal, and IT reforms are additional examples of the new institutional framework that Los Auces Dam, Sanagasta, La Rioja. Photo: World Bank PAGE 11 Vaccination Week campaign, Argentina. Photo: PAHO STRENGTHENING ARGENTINA’S FEDERAL PUBLIC HEALTH SYSTEM ARGENTINA SUPPORTING THE GOVERNMENT’S GOALS OF REDUCING MORTALITY AND MORBIDITY LINKED TO COLLECTIVE DISEASES Activities were implemented to enhance quality assurance, blood safety, epidemiological surveillance, development of healthy municipalities, reduced tobacco use, supply distribution, and regulations essential to the stewardship role of the national and provincial health ministries. Results obtained include expanded coverage (i.e., prevention, diagnosis, and treatment) in the prioritized programs, including tuberculosis testing and treatment, safe blood, and control of noncommunicable and lifestyle-related diseases. Population: 44,271,041 GDP (billions): US$637.43 GNI per capita: US$13,030 IBRD/IDA lending commitments approved in FY18: 1.00 billion New and supplemental Projects approved in FY18: 4 PAGE 13 CHALLENGE Argentina continues to face a silent epidemic of The two main causes chronic disease due to the ageing of its population and citizens’ increasingly unhealthy behaviors. of death for both Progress to reduce the burden of disease has been men and women are slow because little emphasis has been placed on cardiovascular diseases health promotion and disease prevention. In 2016, noncommunicable diseases were estimated to and cancer, accounting be responsible for 78 percent of all deaths in the for 40% of years of country. The two main causes of death for both men potential life lost in men and women are cardiovascular diseases and cancer, and 47.7% in women. accounting for 40 percent of years of potential life lost in men and 47.7 percent in women. While some progress was made on prevention, APPROACH by 2010 Argentina had no comprehensive health The Essential Public Health Functions Project II promotion program. In this context, the project (FESP II) was designed (i) to support Argentina’s sought to use a results-based approach to further government-led health policies and their goals strengthen the management and epidemiological of reducing mortality and morbidity linked to surveillance of programs related to chronic collective diseases, and (ii) to strengthen the diseases, while continuing to reinforce the Ministry stewardship and governance roles of the National of Health’s stewardship role; to introduce strategies Ministry of Health (MSN) and Provincial Health to promote healthier lifestyles and preventive Ministries (MSP) by developing Essential Public measures for selected chronic diseases; and to Health Functions and a series of prioritized ensure coordination of health initiatives at the programs aligned with set health goals. With federal and provincial levels. these objectives in mind and building on progress achieved by its predecessor (FESP I), FESP II emphasized strengthening institutions and capacity PAGE 14 building at both the provincial and the national level and forging links with prioritized programs objectives and goals. The results-based approach proved to be an effective mechanism for delivering services to beneficiaries and for supporting institutional development. Using incentives and technical support from the national Ministry of Health to the provinces, the project successfully promoted coordination between the national and provincial levels by supporting consensus building Blood donation campaign, Argentina. Photo: World Bank and collaboration. satisfactory epidemiological surveillance nodes increased from 0 to 75 percent between 2010 RESULTS and 2017. The project aimed at improving the stewardship role of the federal public health system by • 200 participating municipalities were certified strengthening Essential Public Health Functions. as Health Responsible Municipalities. This Some of the results achieved include: resulted from the effective vertical articulation of health care policies at the national, • The Integrated Health Management provincial, and municipal levels. Information System (SISA, Sistema Integrado de Información Sanitaria Argentino) was • The number of intensive health care units further developed and expanded, including evaluated and properly registered in the system the incorporation of several registers, such increased from 0 to 633 between 2010 and as program’s beneficiaries, human resources, 2017. primary health care centers, drugs monitoring, • 1,665 health personnel from the MSN and among others. provinces received more than 40 hours of • The percentage of certified departments or training in public health labs, blood banks, and local territories with satisfactory or highly vaccination. PAGE 15 • Tuberculosis (TB) treatment expanded, with The number of intensive the percentage of patients receiving treatment after testing positive for pulmonary TB health care units increasing from 54 to 98.6 percent between evaluated and properly 2007 and 2017 and 9,000 drug treatments for registered in the public sensitive and resistant TB provided in 2016. health system increased • The percentage of operational HIV/AIDS from 0 to 633 between Counseling and Testing Centers increased from 2010 and 2017. 0 to 70.6 percent between 2010 and 2017. • By 2017, 81 percent of Argentines living with The project led to increases in prevention, HIV (approximately 69,200 people) receive diagnosis, and treatment coverage and in effective antiretroviral therapy, compared to a global clinical governance in six of the seven selected average coverage of 41 percent. Priority Public Health Programs (PPHPs): • Blood plasma produced by MSN and provincial • The percentage of women between 50 and 69 labs increased from 33,000 to 43,557 kilos years old in the two pilot provinces benefiting between 2010 and 2017. from at least one HPV and/or cytology test provided by the health system increased from BANK GROUP CONTRIBUTION 10 percent to 76.6 percent between 2010 and The World Bank, through the International Bank 2017. for Reconstruction and Development (IBRD), provided US$ 461 million to the Essential Public • The percentage of women between 50 and 69 Health Functions and Programs II Project. years old in the two pilot provinces benefiting from at least one mammogram provided by the health system increased from 10 percent to 90 PARTNERS percent between 2010 and 2017. This project builds on the achievement and experience of FESP I and works on an integrated PAGE 16 approach with Inter-American Development Bank MOVING FORWARD projects. The project successfully promoted harmonization of health efforts at the national and provincial BENEFICIARIES levels by building consensus and collaboration. The The project invested in health-related public structural lack of mechanisms to ensure national- goods with externalities that bring benefits to provincial coordination as well as provincial Argentina’s population (e.g., immunizing the entire compliance with national norms, standards, and population). In addition, robust achievements were reporting constitutes perhaps the most pervasive attained in expanding coverage (i.e., prevention, hindrance to the long-term sustainability of project diagnosis, and treatment) in six out of the seven outcomes. In this regard, several Bank-financed Priority Public Health Programs. Those enrolled operations are helping within their specific or potentially eligible for enrollment in those orbits to ensure the needed coordination. These programs directly benefited from the project. The operations include the Supporting Effective project particularly targeted female beneficiaries Universal Health Coverage Project, the Protecting in the two pilot provinces and moved forward the Vulnerable People Against Noncommunicable indigenous health agenda. Diseases Project, and the Provincial Public Health Insurance Development Project. For those areas of intervention not captured by any specific project, sustainability will depend on continuous efforts to build consensus and buy-in from the provinces and from the corresponding directorate or program management unit at the national level. Blood donation campaign, Argentina. Photo: World Bank PAGE 17 Program Barrios de Verdad, Bolivia. Photo: Julio César Casma / World Bank BUILDING SUSTAINABLE CITIES IN BOLIVIA BOLIVIA URBAN UPGRADING, MOBILITY, AND SANITATION SERVICES FOR LOW-INCOME RESIDENTS IN LA PAZ, EL ALTO, AND SANTA CRUZ The Bolivia Urban Infrastructure Project addresses the nation’s increasing urbanization and the needs of low-income residents in three major cities. This project enhanced mobility in the city of El Alto by constructing routes and sidewalks, benefiting 197,000 people living in high traffic areas. In addition, more than 28,000 people in La Paz benefited from improved access to basic services and infrastructure, and in Santa Cruz more than 34,000 people were connected to the sewerage network. Population: 11,051,600 GDP (billions): US$37.509 GNI per capita: US$3,130 IBRD/IDA lending commitments approved in FY18: 300 million New and supplemental Projects approved in FY18: 1 PAGE 19 CHALLENGE to cover newly constructed infrastructure operation In December 2005, a new government headed by and maintenance costs to ensure sustainability; and Evo Morales, was elected. With a strong mandate (iv) scalability. for a new approach to addressing the country’s long-standing social problems, the new government The project promoted women’s participation set poverty reduction as one of its priorities. Urban in different community activities, and their areas were targeted for investment because of (i) involvement in organized groups such as the the fast pace of urbanization (the portion of the Social Management Committee, the Emergency population living in urban areas increased from 56 Committee, and the Enterprises Group helped percent in 1990 to 64 percent in 2005); (ii) the high them assume leadership positions. Approximately (relative and absolute) levels of urban poverty; and 40,000 women in the targeted neighborhoods (iii) urban areas’ vulnerability to natural disasters, directly benefited from the project. In addition, limited access to quality basic services, and to foster creation of microenterprises by women, transport congestion disproportionately affected technical assistance was offered in specific areas, poorer, more vulnerable groups, including women, including sewing, baking, and gastronomy. In the elderly, and indigenous populations. El Alto, an estimated 102,478 women benefited directly from project interventions to improve APPROACH mobility. The support provided by the World Bank under the project to the cities of La Paz, El Alto, and Santa Approximately 40,000 Cruz built on decades of experience and lessons women in the targeted learned from other projects to upgrade low-income settlements, urban transport, and sanitation in neighborhoods directly Indonesia, Kenya, Argentina, and elsewhere. Using benefited from the this knowledge, the Bolivia Urban Infrastructure project. Project focused on four key aspects: (i) adequate targeting of the poor; (ii) demand for services by the target communities; (iii) institutional capacity PAGE 20 values have doubled since the program’s interventions. • PBCV program participants have joined in knowledge exchanges with Guatemala and Quito, Ecuador, to share their successes in neighborhood improvement, urban management, and community involvement. • In El Alto, 13.44 kilometers of roads were constructed under the project, significantly reducing residents’ travel times. In addition, Women activities program. Photo: Barrios de Verdad more than 18 kilometers of sidewalks were RESULTS built. The project’s direct and indirect benefits were widely felt in the target communities. • In Santa Cruz, more than 34,000 people were connected to the sewerage network. • Project financing has supported urban upgrading activities in 45 neighborhoods between 2006 and 2017. • Since its launch, the Barrios de Verdad (PBCV) urban upgrading program in La Paz has benefited more than 12,500 families and more than 10,300 children living in low incomes areas of the city. • Average travel time to the nearest bus stop in beneficiary neighborhoods decreased from 19 to 7 minutes, and estimates carried out for the Program Barrios de Verdad, Bolivia. Photo: Julio César Casma / World Bank final project evaluation suggest that property PAGE 21 BANK GROUP CONTRIBUTION BENEFICIARIES The World Bank, through the International Gladys Humeres is a woman living in one of Development Association (IDA), provided $54 the upgraded neighborhoods. She has found million to the Bolivia Urban Infrastructure employment working in the childcare groups in the Project. The first phase of the program, approved community center. “I am very happy to have found in 2006, allocated US$30 million: US$10 million a place where my child can learn and grow and be per municipality for each of La Paz, El Alto, and safe while I am also working.” Santa Cruz. In 2012, additional financing of US$12 million supported expansion of urban upgrading La Paz is scaling up efforts in La Paz, and additional financing of US$12 million strengthened urban transport in El Alto. the Barrios de Verdad program and has recently PARTNERS completed upgrading The Inter-American Development Bank provided programs in a total of 100 financing for the Barrios de Verdad program in La Paz, supporting the municipality in efforts to neighborhoods. widen the program to meet the needs of residents in additional low-income neighborhoods. MOVING FORWARD Each of the cities involved in the project continues to maintain the urban upgrading, mobility, and sanitation improvements achieved. In addition, La Paz is scaling up the Barrios de Verdad program and has recently completed upgrading programs in a total of 100 neighborhoods. Small business fair, Bolivia. Photo: Saguapac PAGE 22 Barrios de Verdad program, Bolivia. Photo: Julio César Casma / World Bank PAGE 23 Mauá Hydroelectric Plant, Brazil. Photo: Olavo Simoes / Electrobras IMPROVING PERFORMANCE OF ELECTRICITY DISTRIBUTION IN BRAZIL BRAZIL BRINGING SIX COMPANIES UP TO STANDARD AND READY FOR PRIVATIZATION Six of Brazil’s electricity distribution companies were performing poorly in terms of quality of electricity service, high levels of loss, and struggling commercial management systems. These six companies (collectively DisCos, Distribution Companies) had been rejected by the private sector in a privatization round, and thus were subsumed into the federally owned energy company, Eletrobras. Government goals were to bring them up to standards and find private buyers for them. Population: 209,288,278 GDP (triillions): US$2.05 GNI per capita: US$8,600 IBRD/IDA lending commitments approved in FY18: 625 million New and supplemental Projects approved in FY18: 4 PAGE 25 CHALLENGE irregular and poor quality, so increasing numbers Six Brazilian distribution companies (collectively of consumers did not pay. The result was extremely known as DisCos), offered low quality electricity high average losses (technical and nontechnical) services and were geographically dispersed over of about 34 percent (2005–2008), exacerbated by six states plus Brasilia, an area measuring 3,000 low bill collection rates and a residential payment by 2,500 kilometers. In 2008, interruptions per default rate of 40 percent (2005–2008), due to customer were as high as 87 hours (in Amazonas), meter tampering or illegal diversion of power. as compared to the Brazilian average of 17 hours; The six distribution companies, on average, the annual average number of interruptions per received payment for less than 50 percent of power customer in the six companies was as high as 93 purchased. Despite subsidies, the net balance (again in Amazonas), as compared to 11 for Brazil recorded by these DisCos represented a loss of generally. The DisCos also had a history of low US$349 million in 2007. In terms of financial capacity, poor management, and lack of commercial performance, they recorded financial losses of 1.4 discipline, exacerbated by political interference billion reais in 2010 (equivalent to US$0.8 billion). by local authorities. Prior to the project, mismanagement led to failure to enforce the Service was irregular consequences of nonpayment. The resultant lack of funds led to underinvestment in basic maintenance and poor quality, so and delays in connecting new clients. Service was increasing numbers of consumers did not pay. APPROACH The Eletrobras Distribution Rehabilitation project took a broad, full-scale approach to addressing all issues facing the company. This included (i) smart-grid network equipment (reclosers, capacitors, etc.); (ii) network extensions Distribution system extension situations encountered before actions. Photo: World Bank (including adding unconnected customers); (iii) PAGE 26 regularization of illegally connected customers; Operational Performance (iv) replacement of obsolete meters; (v) advance • Reduced frequency of outages for all six DisCos. metering technology (with telemetering capabilities of thousands of kilometers) for large consumers; • Met or exceeded anticipated reductions in the (vi) an updated customer database; (vii) proper duration of outages for five of the six DisCos, project management procedures; (viii) updated with significant improvements in the sixth, social and environmental procedures; and (ix) a which was hampered by a 1-in-500-year flood. communications program. • Rehabilitation of 988 kilometers (km) of medium (MV) and low (LV) voltage line. RESULTS Implementation of the project was affected by • Construction of 1,015 km of new MV and LV a series of external shocks, including political lines. and regulatory changes and natural disasters. In • Improved voltage levels, as reflected in a 50 addition, the project represented the Bank’s first percent reduction in regulatory compensation large tendering and implementation of smart grid paid to customers (between 2016 and 2017). technology: US$95 million for advanced metering infrastructure (AMI). Even under these constraints, • Improved project management practices the project obtained results in the following key (based on the Project Management Institute’s areas: PMBOK), with Eletrobras managing more than 250 contracts. • Improved consumer safety (fewer fires and electrocutions caused by illegal connections). • Four of the six DisCos received customer satisfaction awards from the Electricity Regulatory Agency. Eletrobras Metering Center in Brasilia. Photo: World Bank PAGE 27 Commercial Performance users (exceeding the project’s target by 77 percent), and 40,851 large scale LV users • At some point during the project, all six DisCos received AMI meters (Advanced Metering exceeded targeted collection rates. At the end of Infrastructure) with telemetering capability, the project, however, the country experienced reducing fraudulent activity and theft. In the an extreme recession, its worst ever. Despite first year of implementation in Rondônia, the this, three of the DisCos maintained their number of routine repeat fraud offenders in the improved performance, and the other three MV network decreased from 42 to 2. avoided deterioration. Analysts have concluded that collection rates would have been worse • Recadastering (relisting) of 3,130,099 under the recession conditions had it not been consumer points and 1,888,653 consumers, for the project’s achievements. leading to 500,000 consumers billed who previously had not been. • New smart meters went to 84 percent of targeted customers, including all 12,475 MV Strengthened distribution line equipment. Photo: World Bank PAGE 28 • Regularization of 82,826 consumer units (equivalent to 232,246 megawatt hours) aggregated, approximately US$70.5 million, as of December 2017. Financial Performance • Considering the several exogenous factors affecting performance, five of the six DisCos (Acre, Alagoas, Piauí, Roraima, and Rondônia) lowered losses by project closure. Four of those continue on a decreasing trend. (Roraima was affected by the Venezuela crisis, outside of its Reregistration of consumers. Photo: World Bank control.) • Social action and communications campaigns • The project achieved over 725 gigawatt hours of were instituted. These aid in project execution, recovered and aggregated electricity. reduce losses, and combat fraud; alert and identify low-income users concerning social Institutional Improvements tariff benefits; and help consumers gain proof • Environmental and social management best of residency to access other government social practices were adopted in the six DisCos. programs and benefits. • Material recycling is now the norm for the BANK GROUP CONTRIBUTION six. All were awarded the Chico Mendes The World Bank, through the International Bank Social Environmental Prize and green stamp for Reconstruction and Development (IBRD), for responsible social and environmental intended at project inception to provide US$495 management, and they are now sharing and million; Eletrobras was to supply US$214 million. replicating the program in Brazil’s other During implementation, however, as a result DisCos. PAGE 29 of multiple shocks (economic, regulatory, and political), the Brazilian real devalued from 1.75 to The project benefited the approximately 4.00 reais (effectively doubling the more than four million available funds from the Bank, as most contracts consumers in six states were nationally bid). At the same time, the now receiving improved government extinguished Eletrobras’s operating fund. As a result, the Bank’s portion of the loan electricity services, which covered expenses originally allocated to Eletrobras, means fewer and shorter and final disbursements were US$272 million from outages, better voltage the Bank and US$148 million from Eletrobras. control (fewer equipment BENEFICIARIES burnouts), and new The project benefited the more than four million (legalized and safer) consumers in six states now receiving improved connections. electricity services, which means fewer and shorter outages, better voltage control (fewer equipment burnouts), and new (legalized and safer) MOVING FORWARD connections. A further expected result, as losses As mentioned earlier, the private sector had not decline, will be lower tariffs. In addition, previously been interested in buying the six distribution unregistered consumers now have proof of companies (Amazonas, Acre, Roraima, Rondônia, residency, enabling them to access social tariffs and Piauí, and Alagoas), as their overall performance other social programs and providing opportunities was considered too poor and risky. Within six to open bank accounts and benefit from other months of finalizing project activities, all six DisCos day-to-day services and conveniences. were privatized. PAGE 30 BOOSTING QUALITY OF URBAN TRANSPORT SERVICE IN SÃO PAULO BRAZIL THE SUCCESS OF SÃO PAULO METRO LINE 4 In 2002, São Paulo embarked on one of its most innovative and successful transport projects of the decade: the construction of Metro Line 4, instituting a modern, safe, and accessible metro line that improves urban mobility along a corridor transporting 750,000 people per day. Today, as the project’s Phase 2 reaches an end, crossing the city from Vila Sônia on the western side to Luz station on other requires only 32 minutes, compared to more than 60 minutes in 2002. Population: 209,288,278 GDP (trillions): US$2.05 GNI per capita: US$8,600 IBRD/IDA lending commitments approved in FY18: 625 million New and supplemental Projects approved in FY18: 4 PAGE 31 CHALLENGE by car, with only 30.8 percent by public transport. In the late 1990s, the São Paulo Metropolitan Buses were the main public transport mode Region (SPMR) faced severe challenges related used: they accounted for 75 percent of all public to uncontrolled urban sprawl, the associated transport trips. Vehicles contributed to 31 percent traffic congestion, and increased travel times and of particulate matter emissions. In 2006, about distances. Increased motorization had resulted 150,000 road accidents occurred in the SPMR, with in negative externalities including pollution, costs conservatively estimated at US$1.5 million accidents, and long commuting times; the public per day. transport sector’s lack of integration was a primary constraint, especially for poor residents at the APPROACH peripheries of the metropolitan area, for whom São Paulo Metro Line 4 was designed to carry one the average daily commuting time was 2.5 hours. million passengers per day. It was Brazil’s first About 37 percent of daily commuting trips were passenger transport public-private partnership Sao Paulo metro. Photo: Mariana Ceratti / World Bank PAGE 32 (PPP), with operation and maintenance under a • Reduced travel times have contributed to 30-year private company concession. The PPP increased demand and level of service. Line 4 was designed with an innovative risk demand transports daily close to 750,000 passengers. It sharing structure. The private sector bears all is expected to reach close to 1 million in 2020. risks when ridership remains within a target • The line offers the latest technology, comfort, range. Below the lower limit, a public payment and safety. Line 4 is the first driverless obligation is generated; above the higher limit, heavy-capacity metro in South America. public and private partners share the gains. It incorporates the latest train operation Another innovation was to segment construction technology (Communications-Based Train into two phases, both supported by the World Control), including platform screen doors that Bank. The first phase included stations with large open when the train arrives, improving safety, ridership; the five remaining stations, plus a speed, and regularity in boarding times, and four-kilometer extension, were left for the second information systems informing passengers phase. Phased construction required an innovative about train capacity. The entire line allows implementation strategy to deal with construction cellular reception. on the already fully operating system. Project continuity was reinforced by a project management oversight consultant that remained throughout the Line 4 is the first driverless project. heavy-capacity metro in South America. RESULTS Line 4 has substantially improved the quality of service provided to urban transport users in the • All stations are physically integrated with buses area of influence served by the project’s Phase 2. near stations or by direct connection to a bus terminal (Four new bus terminals were built, • Since 2002, peak hour travel time has been financed by the project.). According to the reduced by 50 percent to 32 minutes in 2018. latest user satisfaction survey, integration with other metro lines and buses is considered “very PAGE 33 good” by 80 percent of users. Tariff integration into two loans, constitutes 54 percent of Phase (Bilhete Unico) was put in place in 2006, 2 costs. The Bank’s first loan — São Paulo Metro during the first phase of the project, and allows Line 4 (Phase 2) — provided US$130 million, 22 free transfers between all rail-based modes and percent of the overall estimated final cost of the bus systems using contactless fare cards. project. The remaining US$210 million is financed by the São Paulo Metro Line 5 Project, which had • Accessibility to jobs and urban amenities has achieved savings and was therefore extended and increased, especially for low- and middle- restructured to include the final civil works of income areas near Vila Sônia. Residents Line 4. in these areas can now access, within a 60-minute trip, more than twice the number of PARTNERS employment positions than they could before External financing for the public civil works of the the project. São Paulo Metro Line 4 (Phase 2) was co-financed by the Japan Bank for International Cooperation BANK GROUP CONTRIBUTION (JBIC) and the Bank. Each financed close to 22 The World Bank, through the International Bank percent of the initial total costs (US$130 million), for Reconstruction and Development (IBRD), while counterpart funding was expected to be provided $340 million to the São Paulo Metro Line 57 percent. The Bank provided implementation project - Phase 2. The Bank’s contribution, split support on behalf of JBIC. In December 2015, the borrower requested use of US$210 million in savings obtained under the São Paulo Metro Line 5 Project to address the financing needs of Line 4, thus reducing direct counterpart funding in a tight fiscal situation for the State of São Paulo. Similar to Phase 1, Phase 2 relied on the private concessionaire ViaQuatro for the acquisition of new trains and the operation and maintenance (O&M) Sao Paulo metro. Photo: Mariana Ceratti / World Bank PAGE 34 of the newly constructed stations. The 30-year concession contract includes operation of the Metro Line 4 as well as investment and installation of rolling stock, signs, track connections, and data transmission in the train networks. This PPP agreement was signed during Phase 1 (2006) and continued to work successfully during Phase 2, providing a great example of the benefits of using the Maximizing Finance for Development framework in the context of large transport infrastructure investments. ViaQuatro supplied 14 trains in Phase 1 and 15 additional trains during Phase 2. Concessionaire ViaQuatro used an estimated US$450 million of private financing for O&M on Line 4 between 2010 and 2018. BENEFICIARIES Passenger Andressa Gomes Santos lives in Sao Paulo metro. Photo: Mariana Ceratti / World Bank Paraisópolis, in São Paulo’s south zone. She commutes using Line 4. Giane Maria Freitas da Silva lives in Cotia, a “The headway between western area of São Paulo and uses Line 4 both trains is very short, for commuting and over the weekends for leisure and I save 60 minutes traveling, integrating with Line 2. in my daily commute, “I am saving between 20 and 30 minutes every besides the $2 dollars day, and I am very pleased with the comfort it a day given that I don’t provides.” need to get the bus to Sao Paulo metro. Photo: Mariana Ceratti / World Bank reach the Metro.” PAGE 35 Bank’s continued support ensures the financial and “The trains are so much technical sustainability of the project, as does the commitment of the State of São Paulo to improving faster than the buses, the quality of urban mobility for its residents. and I save between 40 to Promoting urban sustainable mobility has been one 60 minutes in my daily of the main pillars of the SPMR’s 16-year Strategic commute.” Master Plan, developed in 2014, which included ambitious actions such as the introduction of parking minimums, promotion of a biking culture, Wanderson Adelino Dias Fernandes lives in the and strong investments in mass transit. Paraisópolis, in the south zone of São Paulo, and commutes to work using Line 4. “I am surprised with so much technology like the platform doors to increase safety for the users. The trains are so much faster than the buses, and I save between 40 to 60 minutes in my daily commute.” MOVING FORWARD Although significant gains in rider benefits have already been achieved, Line 4 is not yet complete. One station and its access tunnel are still under construction and, with financing under a Bank loan, are due to be completed by 2020. Travel time gains between Vila Sônia and Luz are then expected to be even greater: The two ends of the line will be reachable within 20 minutes. The PAGE 36 Sao Paulo metro under construction. Photo: Mariana Ceratti / World Bank PAGE 37 Beneficiaries of the Water and Sanitation Infrastructure and Service Management Project, La Guajira. Photo: Jessica Belmont / World Bank IMPROVING WATER SUPPLY AND SANITATION SERVICES IN LA GUAJIRA, COLOMBIA COLOMBIA ALTERNATIVE APPROACHES TO WATER SUPPLY AND SANITATION SERVICE DELIVERY IN COMPLEX OPERATING ENVIRONMENTS Delivering water supply and sanitation services in La Guajira, presented particular challenges: water was scarce, managerial capacity was limited, and the gap in infrastructure was significant. In response, the Department of La Guajira strengthened the performance of municipal public service companies by involving the private sector in service delivery. Seven municipalities integrated commercially independent private utilities, leading to improved access to water and sanitation service for 409,160 and 362,131 urban residents, respectively. Population: 49,065,615 GDP (billions): US$314.45 GNI per capita: US$5,890 IBRD/IDA lending commitments approved in FY18: 701.9 million New and supplemental Projects approved in FY18: 3 PAGE 39 CHALLENGE The desertic region of La Guajira, one of Colombia’s The Wayuu indigenous most impoverished and underdeveloped departments, is highly sensitive to climatic people living in rural variations and experiences chronic droughts. areas walked miles daily Water is scarce, and managerial capacity is to collect water and relied limited. Compounding the challenges facing the water supply and sanitation (WSS) sector, low on untreated rainwater, institutional capacity and political volatility created resulting in a high a backlog in needed infrastructure investment, incidence of water-borne operation and maintenance. Only 68.2 percent of diseases. the population had water connections, and just 35.1 percent had sewerage connections. APPROACH The Wayuu indigenous people living in rural The La Guajira Water and Sanitation Infrastructure areas walked miles daily to collect water and and Service Management Project sought to relied on untreated rainwater, resulting in a high strengthen the institutional performance of incidence of water-borne diseases. In urban areas, municipal public companies by involving the physical water losses reached over 78 percent of private sector in service delivery. The integration production, metering was practically nonexistent, of specialized operators (SOs) in service provision and 90 percent of wastewater was untreated. The is an approach the World Bank had previously Colombian government channeled resources for supported in Colombia. The capital investment investment to the municipalities, which were financed by the World Bank created an enabling responsible for ensuring WSS services, but much environment that attracted private SOs which, in of these resources was lost due to the complexity of turn, facilitated their engagement in developing working with numerous municipalities. infrastructure and improving utilities’ institutional performance. PAGE 40 RESULTS Between 2007 and 2018, the project improved WSS services for 422,269 beneficiaries in La Guajira’s poorest areas, of whom around 51 percent were female. In urban areas, the project delivered the needed WSS infrastructure and enhanced utilities’ institutional performance by bringing in SOs. Results over the course of implementation Residents of these communities had to walk long distances to fetch water. Photo: World Bank included: • 409,160 urban residents gained access to For rural areas, the project focused on securing improved water services; coverage increased access to improved water sources by supporting from 70 percent to 90 percent in the the construction of reservoirs and building local participating municipalities. capacity, drawing on the Bank’s experience working with indigenous communities and managing social • 362,131 urban residents benefited from issues. The project also aimed to enhance sector improved sanitation; sewerage coverage efficiency by channeling funding to the department increased from 53 percent to 80 percent in the as opposed to the municipalities. The project served participating municipalities. as a pilot effort at the national-level for overcoming challenges associated with directly funding • The project supported the seven participating municipalities; an approach that came to be termed municipalities in introducing SOs, with the Departmental Water Plan (Plan Departamental adjusted performance standards linked to the del Agua, PDA). Working in a politically complex PDA. project environment such as La Guajira required • In all participating municipalities, water supply flexibility and strategic planning. quality met national standards for human consumption (i.e., below 5 percent on the PAGE 41 Water Quality Risk Index of the Colombian • Non-revenue water was reduced from 78 National Health Institute). As result of project percent to 57 percent. interventions, 90 percent of households in • In rural areas, the project supported the participating municipalities have access to construction of 10 reservoirs and ancillary safe water supply on premise via a municipal infrastructure (including fences, livestock network. drinking points, and dam safety measures). • Water continuity increased on average from 8 Over the course of implementation: to 11.4 hours per day. • 8,881 Wayuu indigenous people gained access • Micrometering expanded from 16 percent to 55 to improved water sources through protected percent. rainwater reservoirs, far exceeding the project’s target of 3,500 people. • Revenue collection rates increased from 28 percent to 48 percent. • The time rural community residents spent daily fetching water was reduced on average from more than five hours to less than one hour. 8,881 Wayuu indigenous people gained access to improved water sources through protected rainwater reservoirs, far exceeding the project’s target of 3,500 people. Livestock watering in Puerto Virgen reservoir. Photo: World Bank PAGE 42 BANK GROUP CONTRIBUTION PARTNERS The World Bank, through the International Bank The government of Colombia’s commitment to for Reconstruction and Development (IBRD), the project was key to its success. The government provided US$71.4 million toward the total project took unprecedented steps, involving the Ministry costs of US$139.6 million. The Bank’s contribution of Finance, the National Planning Department, of international expertise, best practices, and and the Ministry of Housing, City, and Territory relevant lessons learned supplied critical support to in project implementation and supervision. Colombia’s government for delivering the project Departmental and local administrators and special and achieving the desired results in the Department operators also played critical roles in improving of La Guajira’s complicated operating environment. urban WSS services in participating municipalities. The project contributed to leveraging an additional US$68.2 million in counterpart financing, drawn from a mix of national and local resources. Residents of Wayuu communities had to walk and bike long distances to fetch water, La Guajira. Photo: World Bank PAGE 43 BENEFICIARIES “We have a team of social workers responsible Among the reflections of those impacted by the for conducting outreach, telling the population project: about the benefits of the projects and promoting a “Before the project, water ran just twice per week, culture of water saving….There was a demand for or even once. We had to buy water from trucks. better services, therefore through water quality Now we have 24-hour supply…. Now, water and service improvements, willingness to pay is is more suitable for human consumption and greater, improving sustainability”. household chores”. William Garcia, a manager of ASAA Luis Cardenas and Dairy Pinto, community leaders (a Riohacha SO). in Riohacha. “We had to walk six or seven kilometers just for MOVING FORWARD two water containers. Now we are quite near”. The project, designed as a pilot to enhance sector Maria Armenta, a Wayuu beneficiary living in efficiency by using the SO model, proved replicable. Upper Guajira. The PDA pilot supported by the project represented a significant step forward for Colombia’s WSS sector. Based on this experience, the national government adjusted the constitution to generate a pool of WSS resources under the revenue sharing system, thus scaling the PDA program nationwide to all of Colombia’s 32 departments. The SO contracts in the project’s two largest municipalities run through 2030, limiting the risk that project achievements will not be maintained. The Bank continues to provide technical assistance and to strengthen the SO model, involving private operators in an approach that aligns well with the Aqueduct and metering installation. Albania, La Guajira. concept of Maximizing Finance for Development. Photo: World Bank PAGE 44 Although water security has improved for the expanding water supply sources and improving Wayuu community, challenges persist, and institutions charged with providing WSS services. upcoming efforts should address issues related to Maurau reservoir, rural area in La Guajira. Photo: World Bank PAGE 45 Afro-descendants in Costa Rica. Photo: Jessica Belmont / World Bank STRENGTHENING DISASTER RISK MANAGEMENT IN COSTA RICA COSTA RICA INSTRUMENTS AND STRATEGIES FOR BUFFERING SOCIAL AND FISCAL IMPACTS FROM DISASTERS Costa Rica has significantly strengthened its institutional and legal framework for disaster risk management (DRM) and has further anchored and mainstreamed DRM into National Development and Investment Programs. The country has strategically used a World Bank contingency loan to buffer the social and overall fiscal impacts of three natural disasters and has developed a strategy to further strengthen disaster risk financing. Population: 4,910,615 GDP (billions): US$57.29 GNI per capita: US$11,120 PAGE 47 CHALLENGE DDO) offers an innovative tool for disaster risk Costa Rica ranks number two in the world among financing by providing financial resources upon countries most exposed to multiple hazards, with request following declaration of an emergency and 77.9 percent of the population and 80.1 percent request of funds. Costa Rica’s Cat DDO was the of GDP located in areas at high risk of multiple first application of this instrument, and provided hazards, including floods, cyclones, landslides, the nation with complementary and bridge funding earthquakes, and volcanic eruptions. Before this to use while other it mobilized other financial operation, major disasters included floods in resources, thus protecting development programs’ November 2005 and December 2007 that caused budget allocations. The Cat DDO has been extended US$ 25 million and US$ 80 million in damage, twice, for a total of nine years, and notwithstanding respectively. In May 2008, Tropical Storm Alma two changes in government during project affected 20 counties, directly affected 21,000 implementation (2010 and 2014), the government people, destroyed more than 1,150 houses, cut off remained fully committed to the disaster risk more than 130 roads, and resulted in about US$ management program. 40 million in direct economic losses. To avoid compromising long-term development programs In May 2008, Tropical by diverting budgetary resources to crisis response, Costa Rica needed to ensure its access to additional Storm Alma affected 20 post-disaster funding to assist affected populations counties, directly affected and support reconstruction. 21,000 people, destroyed more than 1,150 houses, APPROACH The World Bank’s Development Policy Loans cut off more than 130 (DPL) provide budget support to governments roads, and resulted in for programs enhancing policy and institutional about US$ 40 million in actions that help to achieve sustainable, shared growth and reduce poverty. The DPL with direct economic losses. Catastrophe Deferred Draw Down Option (Cat PAGE 48 • Hurricane Otto, a category 3 hurricane, passed over the northern part of the country between November 17 and November 25, 2016, causing significant infrastructure damage, disruption of critical services, and 10 fatalities; 10,831 persons were directly affected, of whom 7,425 were displaced. Overall, damages were estimated at US$ 186 million. The government used the Cat DDO funds strategically to complement sectoral allocations Map plotting the track and the intensity of the storm, according to the reserved for emergency response and financial Saffir–Simpson scale. Photo: Created using WikiProject Tropical cyclones/ Tracks. Background image is from NASA resources from the National Emergency Fund. For several other major events, including the Sámara earthquake in 2012, which caused damage totaling RESULTS about US$ 101.2 million, Costa Rica managed to Through the nine years of Cat DDO implementation respond without drawing on the Cat DDO at all, (2008–2017), the Costa Rican government used thus saving resources for possible future major the US$ 65 million of funds to respond to three disasters. disasters: • The Cinchona earthquake on January 8, 2009 In policy terms, Costa Rica’s Cat DDO has resulted in 22 casualties, 17 missing persons, contributed to strengthening two key areas of the about 100 injured, 986 persons displaced, and country’s disaster risk management program: damages and losses of over US$ 500 million. (a) it has helped strengthen the institutional and legal framework through the approval of Law • Heavy rainfall from Tropical Storm Nicole, No 8.488 and its regulation, followed by their between September 28 and 30, 2010, led to implementation which included activities such as landslides and floods causing US$14.85 million the development of National Risk Management in damages. PAGE 49 Policies and Plans, organization of yearly National agencies concerning disaster risk financing proved Risk Forums and strengthening of the National key to the project’s very positive result and formed Emergency Fund, and (b) it has mainstreamed a basis for the nation’s further engagement with the disaster risk management in the National Bank in a broader DRM dialogue. Development and Investment Programs, resulting for instance in the consideration of disaster risk BENEFICIARIES considerations in all public investments. The The foremost goal for strengthening the DRM project thus contributed to institutional changes framework was to respond to the needs of the most that encouraged a more responsive approach to vulnerable. By mainstreaming DRM across sectors disasters and comprehensive, ex-ante management and into national development, Costa Rica’s risk of risk across sectors. considerations are now closely linked to its poverty reduction efforts. BANK GROUP CONTRIBUTION The World Bank, through the International Bank The effective and timely for Reconstruction and Development (IBRD), provided a loan of US$ 65 million to finance the use of funds available project. In addition, the Bank brought to the project from the CAT-DDO global knowledge and international best practices allowed families, on disaster risk management. especially the most vulnerable ones, to return PARTNERS Strong leadership from Costa Rica’s Ministry of to their regular activities Finance, the National Emergency Commission, as soon as possible. and the Ministry of National Planning and Following the disasters for which the Cat DDO was Economic Policy was critical for the successful drawn on, Melvin Quiros, Director of Public Credit, implementation of this operation. Furthermore, Ministry of Finance, stated, that the “Financial increasingly close collaboration among the three strategy related to natural hazards, which included PAGE 50 the Cat DDO as an important component, helped and further strengthening its National Emergency the impacted population to feel the support of the Fund through an amendment to the law. government in such difficult times, not only in the immediate emergency response but also during At the World Bank, the experience provided by and rehabilitation and reconstruction. In particular, the lessons learned from the Costa Rica Cat DDO, the effective and timely use of funds available from the first of its kind, have informed other projects the CAT-DDO allowed families, especially the most in the Latin America and Caribbean region and vulnerable ones, to return to their regular activities use of the instrument has subsequently spread to as soon as possible. Asia, Africa, and most recently, Europe: Colombia and Guatemala (2009); Peru, El Salvador, and MOVING FORWARD the Philippines (2011); Panama (2012); Colombia Since this Cat DDO closed, the government of Costa (2013); Sri Lanka (2014); Seychelles and Peru II Rica has continued to make significant progress (2015); the Philippines II (2016); Serbia and the in strengthening the DRM agenda, moving toward Dominican Republic (2017); and Romania and endorsement of the disaster risk financing strategy Kenya (2018). Sepecue, Costa Rica. Photo: Cynthia Flores / World Bank PAGE 51 Campaña #SVNecesita Salvador Antonio Castro Moreira, de Santiago Texacuangos, El Salvador. Photo: World Bank RENOVATING THE PUBLIC HEALTH CARE SYSTEM IN EL SALVADOR EL SALVADOR REDUCING THE BURDEN OF DISEASE Health care improved in El Salvador’s poorest 92 municipalities: births in health facilities increased, neonatal units were equipped, and full cycles of treatment for cervical cancer were ensured, contributing to decreases in maternal and neonatal mortality. In addition, the nation strengthened its emergency response network, improved the equipment available at the primary and tertiary levels of care, and improved the National Reference Institute responsible for identifying and monitoring infectious diseases. Population: 6,377,853 GDP (billions): US$24.80 GNI per capita: US$3,560 PAGE 53 CHALLENGE APPROACH El Salvador’s population faced development The Bank approached these challenges through challenges due to inequalities in health care the Strengthening Public Health Care System access and quality. Limited access to health project, which provided a flexible response to care and high out-of-pocket expenditures had a meeting the country’s evolving needs. Investment disproportionate impact on the poor and those innovations included emphasis on maintenance of living in rural areas. The country’s health care medical equipment, with more than 51 primary care system needed enhanced response capacity to hospitals and 30 secondary and tertiary hospitals effectively address increasing morbidity, mortality, receiving infrastructure and equipment updates. and disability from communicable diseases and In addition, with project support, the Ministry of chronic noncommunicable diseases within these Health established the first National Radiotherapy populations. Center to provide complete cycles of care for cancer patients, including training staff in treatment and Maternal mortality had decreased but had not management of third-generation equipment. reached the Millennium Development Goal (MDG) of 38 deaths per 100,000 live births; this remains Investment innovations a challenge, with 48 deaths per 100,000 live births in 2015 (decreased from 50.8 in 2011). In 2009, included emphasis the government launched a health system reform. on maintenance of The National Health Strategy (2009–2014) aimed medical equipment, with to reduce inequalities in access, improve health service quality, and strengthen information system more than 51 primary management to enhance the Ministry of Health’s care hospitals and 30 monitoring and oversight capacity. The World Bank secondary and tertiary supported the government in implementing the hospitals receiving planned health reforms. infrastructure and equipment updates. PAGE 54 The project also strengthened the National Institute ◦◦ With a baseline of 92 percent, the goal of Health and National Reference Laboratory, was to achieve 92.8 percent of coverage which are responsible for the country’s response of pentavalent vaccine by 2016. The and monitoring capacity during outbreaks of municipalities surpassed the goal reaching infectious diseases; harmonization and collection 95 percent in years 2013 - 2014, and of data, including the National Health Survey reached 92 percent in 2016; and missed 2016; and the National Survey of Chronic narrowly in 2015. Noncommunicable Diseases in Adults. Results from ◦◦ In the project’s final year (2017), and in this survey supported creation of the first National 2015 however, the vaccination rate did Direction of Noncommunicable Diseases and not reach the goal. In 2017 it fell to 80.6 development of the national strategy for prevention percent from the 95 percent achieved in and care of chronic noncommunicable diseases. 2016 and even below the 86.6 percent of 2015. The decrease was attributed to gang RESULTS violence that increased in those years, The project had two goals: (i) expand access which may have deterred families from and improve the quality of health services traveling to health facilities. El Salvador’s for El Salvador’s poor and rural citizens; and well-known gang problem was acute in (ii) strengthen El Salvador’s health ministry all 92 municipalities, 90 of which are stewardship capacity to manage essential public considered highly dangerous. health functions. The project was implemented in • Increasing the percentage of births occurring in 92 municipalities, targeting 2.1 million people. health facilities. ◦◦ With a baseline of 81 percent for 2012, the Goal 1: Improving health services for poor and rural project set a goal of 84 percent of births citizens. taking place in health facilities by 2018. • The project aimed to increase the percentage That goal was substantially exceeded: 99.8 of children younger than one year receiving a percent of births occurred in facilities by third pentavalent vaccination. the end of 2017. PAGE 55 ◦◦ The increase in institutional deliveries, ◦◦ The new number was surpassed when 30 combined with improved neonatal hospitals are now following environmental equipment, had dramatic results. The rate regulations for disposal of biohazardous of maternal mortality in the public system waste. fell to 31 deaths per 100,000 live births in 2017, from 65.4 deaths in 2006, and BANK GROUP CONTRIBUTION infant mortality dropped to 12.5 deaths per The World Bank, through the International Bank 100,000 live births in 2017, from 26.9 in for Reconstruction and Development (IBRD), 2000. provided US$80 million to fully fund El Salvador’s Strengthening Public Health Care System project. A The rate of maternal Japan Social Development Fund (JSDF) trust fund mortality in the public of US$2.8 million was implemented in parallel with this project. It contributed safeguards for pregnant system fell to 31 deaths women and children under the age of three against per 100,000 live births in shocks from food price volatility, thus protecting 2017, from 65.4 deaths in the health, nutritional, cognitive, and social outcomes of very young children in marginalized 2006. urban poor families. PARTNERS Goal 2: Strengthening the Ministry of Health’s To accelerate progress towards reducing maternal institutional capacity in essential public health and neonatal mortality, the project included functions. interagency coordination among the Pan • The project succeeded in getting hospitals to American Health Organization, the World Health safely dispose of their biohazardous waste. Organization, the United Nations Children’s ◦◦ The number of hospitals targeted increased Fund, the United Nations Population Fund, the from 14 to 26 over the course of the United Nations Development Programme, and project. the Inter-American Development Bank. The role PAGE 56 of partnerships — involving government, civil The new project will include promotion, prevention, society, the United Nations, the World Bank, and and early treatment of disease. a preliminary interaction with the private sector — was extremely positive, creating a sense of shared In addition, a new project is now under preparation responsibility and efficiency in the investment. with the Inter-American Development Bank that The government made an effort to cover many of will fund activities on maintenance of medical the activities discussed with and defined along equipment as a follow up to this World Bank health with the partners as key in the effort to reach the project. MDGs. Agencies found complementary roles in the effort to reduce maternal and child mortality and established coordinating mechanisms integrating the international cooperation in the El Salvador’s National health Strategy. BENEFICIARIES The project benefited 2.1 million people living in 92 municipalities, especially women and children. MOVING FORWARD State Immunization Programs. Photo: Ministry of Health This project proposed to pilot the line of care for noncommunicable diseases in three regions. A new project — El Salvador Addressing Noncommunicable Diseases — is currently under implementation and is being funded by a grant. Once the model is approved, it will be expanded to the whole country under another project, currently under preparation: Promotion of Human Capital in El Salvador at Different Stages of the Life Course. PAGE 57 Young students learning together, Annai Primary School, Guyana. Photo: Daisuke Kanazawa / GPE IMPROVING LITERACY AND NUMERACY OUTCOMES FOR GUYANA’S EARLY LEARNERS GUYANA NEW CURRICULUM DESIGN, TEACHER TRAINING, IMPROVED CLASSROOM MATERIALS FOCUSED ON SUPPORTING CHILDREN’S EARLY LEARNING AT HOME Nursery and grade 1 teachers and students in 231 schools in Guyana’s Hinterland Regions and 73 schools in its remote riverine areas of its Coastal Regions received interventions to help improve the quality of early childhood education services. During the first cohort’s two nursery years, the percentage of Hinterland students attaining at least an “approaching mastery” level of emergent literacy and numeracy rose by 36 and 40 percentage points, respectively. Population: 777,859 GDP (billions): US$3.62 GNI per capita: US$4,500 IBRD/IDA lending commitments approved in FY18: 35 million New and supplemental Projects approved in FY18: 1 PAGE 59 CHALLENGE that were significantly higher than those attained In 2014, the quality and equity of Early Childhood by their Hinterland peers (50.5 and 53.5 percent Education (ECE) services were the most critical versus 39.6 and 41.9 percent, respectively). A issues in need of attention in Hinterland and project targeting improved ECE for Guyana’s remote riverine Coastal communities. In these most vulnerable children was urgently needed to areas, a high percentage of teachers (53 percent) build these valuable skills and boost the learning were untrained, operated with inadequate teaching potential of these students. materials, and served children of parents with low levels of adult literacy. APPROACH The Guyana Early Childhood Education These circumstances translated into lower levels of Project enabled interventions that included: (i) emergent literacy and numeracy skills for nursery development of a new nursery/grade 1 curriculum students in the Hinterland Regions compared and instructional strategies; (ii) a multiyear with Guyana’s more affluent Coastal Regions. training program for teachers to strengthen A 2015 Nursery Diagnostic Assessment showed content knowledge and pedagogical skills; (iii) a that Coastal students had attained “approaching multiyear in-classroom monitoring program to mastery” levels of emergent literacy and numeracy evaluate teachers’ performance in implementing the new curriculum; (iv) distribution of ECE Resource Kits to promote learning through play; (v) implementation of a pilot program to strengthen parents’ support of their children’s emerging literacy and numeracy; and (vi) execution of a media campaign focused on caregivers’ role in children’s intellectual development. This approach yielded improvements in instructional quality at the nursery and grade 1 A teacher at the Hill View Nursery School. Guyana. Photo: Carolina Valenzuela / GPE levels, allowed teachers to promote developmentally PAGE 60 appropriate play-based learning, and fostered Coastal students attaining at least “approaching caregivers’ efforts to more actively engage in mastery” levels of literacy and numeracy supporting young children’s learning at home. were reduced to 2 and 3 percentage points, respectively. RESULTS • At project close (September 2018), 526 nursery Between June 2015 and September 2018, over and grade 1 teachers had completed training in 8,700 nursery and grade 1 teachers and students all topics included in three training modules. benefited from the project, 51 percent of whom were Trained teacher evaluations conducted during female. The project fostered improvements in ECE the 2016–17 academic year resulted in 54.5 for Guyana’s most disadvantaged early learners, as percent of teachers attaining a rating of 3 or evidenced by these outcomes: 4 (out of four) on the ECE Program Delivery Evaluation Checklist. • As the first cohort completed its second year • 750 ECE Resource Kits were distributed to all of nursery (June 2017), nearly 76 percent of nursery and grade 1 classrooms targeted by students attained at least an “approaching the project. During trained teacher evaluations mastery” level of emergent literacy, and nearly carried out in 2016–17, 78.6 percent of teachers 82 percent of students attained at least an used the Resource Kit as part of their teaching “approaching mastery” level of emergent numeracy. • The percentage point increases in emergent literacy and numeracy achieved by Hinterland students during the first cohort’s two years in nursery school were on par with those achieved by their peers in Coastal Regions. • For the second cohort, the 11- and 14-point gaps in the percentage of Hinterland and Young students in class. Guyana. Photo: Carolina Valenzuela / GPE PAGE 61 plans, and 71.2 percent of the observed teachers children. The campaign fostered a change scored either a 3 or 4 on proficiency in use of in adult attitudes toward early education, the kit. as parents realized their own potential for encouraging and promoting their children’s • A Parent Circle pilot was carried out during learning at home. the 2016–17 school year. Led by 14 facilitators, sessions focused on engaging caregivers in 13 BANK GROUP CONTRIBUTION Hinterland communities in children’s early The Guyana Early Childhood Education Project, learning, benefiting 212 caregivers of children through the Global Partnership for Education Trust between ages three and six. Fund, received a grant of US$1.7 million to improve the quality of ECE offered to disadvantaged The Read-Play-Love nursery and grade 1 students over three years. mass media campaign The World Bank served as the coordinating and fostered a change in grant agency for the trust fund, which is endowed adult attitudes toward by the governments of 20 countries: Australia, Belgium, Canada, Denmark, Finland, France, early education, as Germany, Ireland, Italy, Japan, Luxembourg, the parents realized their own Netherlands, Norway, the Republic of Korea, Spain, potential for encouraging Sweden, Switzerland, the United Arab Emirates, the United Kingdom, and the United States. and promoting their children’s learning at During project implementation from 2015 to 2018, home. a Bank team effectively guided and supervised a small team within the Ministry of Education in • The Read-Play-Love mass media campaign, all aspects of project coordination, monitoring which included posters, brochures, DVDs, and and evaluation, and financial management and radio and television advertisements, reached procurement duties. a nationwide swath of caregivers of young PAGE 62 and future caretakers who become more actively engaged in supporting their children’s learning are project beneficiaries, whether they participate in a Parent Circle group or are simply inspired by the empowering message of the Read-Play-Love media campaign. MOVING FORWARD The Ministry of Education’s commitment to building on project achievements is evidenced Young boys in class at the St. Anthony Primary School. Guyana. by the following: (i) teacher training modules Photo: Carolina Valenzuela / GPE developed under the project are now incorporated PARTNERS into the standard training provided to new nursery As noted above, the World Bank served as the and grade 1 teachers; (ii) funding is allocated coordinating agency for the project’s US$1.7 million to replenish existing ECE Resource Kits and grant from the Global Partnership for Education to purchase new kits for nursery and grade 1 Trust Fund. classrooms nationwide; (iii) funding is allocated to expand the Parent Circle initiative beyond the BENEFICIARIES pilot and to provide oversight of new groups as they Project beneficiaries include current and future form; and (iv) the ministry maintains the Read- nursery and grade 1 teachers who were and will Play-Love website as an educational resource for be trained in pedagogical strategies for effectively caregivers of young learners. delivering the newly designed nursery and grade 1 curriculum. Current and future nursery and grade 1 students are also project beneficiaries as they will be learning from teachers using interactive teaching methods and exhibiting a newly bolstered sense of purpose as educators. Finally, current PAGE 63 Haitian Students Breathe New Life into Depleted Pine Forest. Photo: Logan Abassi / United Nations EDUCATION FOR ALL IN HAITI HAITI IMPROVING ACCESS AND QUALITY OF PRIMARY EDUCATION AND INSTITUTIONAL CAPACITY IN HAITI The Tuition Waiver Program increased and maintained enrollment by financing 482,000 grants to more than 1,000 schools. The School Health and Nutrition program reached a cumulative total of 457,897 children, improving access and attendance in 450 schools across the country. Support to community schools increased access by providing 220 teachers for 7,000 students each year. The pre-service teacher training program certified more than 3,570 teachers. Population: 10,981,229 GDP (billions): US$8.40 GNI per capita: US$760 IBRD/IDA lending commitments approved in FY18: 105 million New and supplemental Projects approved in FY18: 3 PAGE 65 CHALLENGE de l’Education et de la Formation Professionnelle Prior to 2010, Haiti’s fragile education system - MENFP) and the loss of 85 percent of schools in faced a complex situation, including challenges on affected areas; other schools closed, and up to 2.9 both the demand and the supply sides. The sector million children faced interruption in their studies. was plagued by a lack of reliable data, shortages In addition, many parents struggled to finance of school infrastructure and trained teachers, and education for their children (over 80 percent of ineffective governance mechanisms. The 2010 primary and secondary schools were nonpublic), earthquake further exacerbated and compounded and not enough space was available for children these issues: It caused the death of more than a able to enroll. (An estimated 400,000 to 500,000 thousand teachers and staff from the Ministry of children aged 6 to 12, mostly in rural areas, did not Education and Professional Training (Minsstère attend school.) School in Port-au-Prince, Haiti. Photo: World Bank PAGE 66 and the Bank to serve important roles in mobilizing An estimated 400,000 to donor resources through catalytic funds and parallel financing. 500,000 children aged 6 to 12, mostly in rural RESULTS areas, did not attend EFAII supported improvements in several key school. outcomes: • The net enrollment rate increased from 50 APPROACH to 60 percent in the early 2000s, before The Education for All Phase II (EFAII) project the Tuition Waiver Program (TWP), to an was the second of a three-phase program. It estimated 70 to 80 percent in 2012. The project financed the continuation of strategic priorities also contributed to improving nonpublic school initiated under Education for All Phase I, while enrollment via the TWP (480,000 grants were strengthening the focus on improving education disbursed under the EFAII project). quality. Primary goals were increasing enrollment and access to primary education through the • 57 community-based schools were built Tuition Waiver Program (TWP), particularly in in remote areas and continue to function, rural communities, and implementing the School enrolling about 6,500 students per year Health and Nutrition Program (Programme de between 2011 and 2018. Santé et Nutrition Scolaire - SNH). Other emphases • A total of 457,897 students over the project’s were improving the quality of primary education, lifetime benefited from the School Health and teacher training activities, support for reading Nutrition program, encouraging attendance instruction, and strengthening institutional between 2011 and 2018. capacity. EFAII also helped bridge the anticipated financing gap for implementing the MENFP’s • 3,570 teachers from rural communities were Operational Plan (the strategy document outlining certified by the Pre-Service Teacher Training its national priorities), and it allowed the ministry Program, and teacher training materials were PAGE 67 distributed across the Ministry of Education cover a gap in funding the SHN program (School and Professional Training (Ministère de Health and Nutrition Program), and the project l’Education et de la Fromation Professionelle) received additional financing in the amount of between 2011 and 2018. US$24.1 million in October 2014 from the Global Partnership for Education (financed by Australia, • 26,718 students in 299 schools benefited from Belgium, Canada, Denmark, European Union, the scripted reading method M’Ap Li Net Ale Finland, France, Germany, Ireland, Italy, Japan, between 2011 and 2018. An impact evaluation Luxembourg, Netherlands, Norway, Republic of showed improvement in students’ foundational Korea, Spain, Sweden, Switzerland, United Arab reading skills. Emirates, United Kingdom, United States of • 91 schools were rehabilitated following America) to help finance implementation of the Hurricane Matthew in October 2016. MENFP’s transitional education plan and to scale up the project’s activities. • A Quality Assurance System was developed by MENFP between 2016 and 2018, with technical assistance provided by the project, to establish The School Health and school profiles based on agreed quality Nutrition program standards. This system laid the foundation of reached a cumulative a framework to monitor the quality of service total of 457,897 children, delivery at the school level. improving access and BANK GROUP CONTRIBUTION attendance in 450 schools The World Bank, through the International across the country. Development Association (IDA), provided US$70 million to Haiti’s Education for All Phase II program in 2011. In June 2014, additional financing in the amount of US$14.75 million from the Haiti Reconstruction Fund (HRF) was provided to PAGE 68 the Global Partnership for Education through a Recipient-Executed Trust Fund. BENEFICIARIES Jessica Prudent, 11 years old, lives in Port-Au- Prince. She went to a school in Carrefour, one of the poorest neighborhoods of the capital. She benefited from the Tuition Waiver Program for six years, allowing her to attend school for free. In Haiti, parents have to pay on average US$130 each year 11 year old Jessica Prudent from Port-au-Prince, Haiti. Photo: World Bank to send their children to school, leaving more than PARTNERS 200,000 children who cannot pay out of school. A sector group including major technical and On average, children start school two years late, financial partners in addition to the Bank — the as was the case for Jessica’s older sister. Her mom Inter-American Development Bank, the European says, “The first one did not enter school early. She Union, the Caribbean Development Bank, is 21 years old and in her final year of secondary the United States Agency for International school.” Jessica adds, “The Program EFAII helped Development, the United Nations Children’s Fund, me pursue my studies. If I did not benefit from it, I and the United Nations Educational, Scientific, do not know where I would be at this time.” and Cultural Organization, among others — met periodically to help coordinate investments in the MOVING FORWARD sector and offer technical support to the Ministry of One of the innovations under the project, the Education. Quality Assurance System, is being taken forward in a new project, PEQH (Providing a Quality Under EFAII, the Bank served an important role Education in Haiti). This program aims to make in mobilizing resources, including Canadian quality assurance the foundation of MENFP’s funds through the Catalytic Fund, the Caribbean efforts. Its goals are (i) to ensure access to a Development Bank through parallel financing, and quality primary education through a data and a PAGE 69 result-oriented approach that measures schools’ it to fast-track implementation and achieve results progress, (ii) to develop improvement plans only a year and a half into implementation, despite for public schools, and (iii) to enable nonpublic challenging country circumstances. schools to meet eligibility requirements for public financing. Lessons learned from EFAII were carefully integrated into the PEQH design, helping School in Port-au-Prince, Haiti. Photo: World Bank PAGE 70 REBUILDING HAITIAN INFRASTRUCTURE AND INSTITUTIONS HAITI POST-DISASTER RECOVERY AND RECONSTRUCTION Leveraging the rapid support offered by the World Bank’s International Development Association in the aftermath of the January 2010 earthquake, Haiti successfully managed to combine early recovery actions with long-term reconstruction planning to quickly restore main economic management functions and rebuild key institutions and infrastructure, benefiting more than one million people. Population: 10,981,229 GDP (billions): US$8.40 GNI per capita: US$760 IBRD/IDA lending commitments approved in FY18: 105 million New and supplemental Projects approved in FY18: 3 PAGE 71 CHALLENGE Parliament, and all but one of its ministries. Much Recorded as Haiti’s most devastating natural of the service delivery infrastructure in and around disaster in recent history, an earthquake on January Port-au-Prince was destroyed, including critical 12, 2010, killed an estimated 230,000 people, stretches of the primary road network linking the injured 300,000 more, and displaced more than capital to heavily damaged southern cities. 1.5 million as a result of collapsed buildings and infrastructure. Damages and losses stemming from APPROACH the 7.0 magnitude earthquake were estimated at The Infrastructure and Institutions Emergency US$7.8 billion, representing 120 percent of Haiti’s Recovery Project (IIERP) was designed to gross domestic product, and reconstruction needs support Haiti’s government in its post-disaster reached US$11.3 billion. sustainable recovery efforts through interventions to rebuild key institutions and infrastructure. The Damages and losses International Development Association (IDA) not were estimated at US$7.8 only financed urgent actions needed to provide relief to the population, to enable early recovery billion, representing assessments and works, and to restore key 120% of Haiti’s gross government functions, it combined these actions domestic product, and with institutional strengthening including training, capacity building, and reconstruction urban reconstruction needs planning, a crucial step in addressing the need for reached US$11.3 billion. improved long-term reconstruction planning. The unprecedented damage throughout the country After the immediate crisis, IDA provided Haiti weakened the government’s ability to respond with substantial support — through flexible tools, to the crisis. In addition to the loss of one-third a stronger footprint on the ground, and a tailored of its civil servants, Haiti suffered partial or total capacity-enhancement approach and by forming collapse of key administrative buildings, including an implementing entity to supplement government the National Palace, the National Penitentiary, the capacity — enabling the government to enhance its PAGE 72 long-term governance reform agenda and to rapidly activities and enhancing the capacities of MEF’s reconstruct its key infrastructure. This innovative entities. approach integrated emergency activities with • Rehabilitation of key infrastructures and long-term reconstruction planning and became a related activities that benefited 1.1 million model for subsequent IDA-financed post-disaster people. These efforts included distribution emergency projects in Haiti. of immediate recovery supplies to 50,000 people (2010), removal of 110,000 cubic RESULTS meters of rubble from canals (2010), setting IDA financing helped support the achievement up a debris processing facility, and processing of key outcomes, despite the challenging context. more than 1.3 million cubic meters of rubble These outcomes included: (2010 to 2014). In addition, 100 kilometers • Restoration of Ministry of Economy and of road were rehabilitated, including the Cap Finance (MEF) internal control and audit Haitien to Labadie road (June 2016), which functions and, by early 2011, of its ability to created tourism potential, improved access to process payrolls. By 2012, the capacity of key markets and services, and generated 95,000 public financial management (PFM) entities days of work through infrastructure repair or was restored, including budget preparation, reconstruction, including job opportunities in tax collection, payroll and salary payment, communities that were among the poorest and and external and internal controls; all PFM most severely affected by the disaster (2017). entities have been back to normal since 2017. • Strengthening of the reconstruction planning The government’s capacity to collect taxes process for Port-au-Prince and surrounding and customs revenues was sustained through affected areas and of public consultation the reconstruction and operations of a new mechanisms. The Inter-ministerial Territorial antiseismic customs office (2017). The project Planning Committee, created only nine months also supported the government in establishing before the earthquake, became one of the and operating an institutional framework for major actors in the reconstruction process in properly managing the envisioned PFM reform 2010, undertaking creation of key transversal PAGE 73 development strategies and instruments. development impact, especially during the project’s The Ministry of Public Works, Transport, emergency phase. The Post-Disaster Needs and Communications established a Building Assessment was implemented in the first few Technical Evaluation Unit that by 2012 had months following the earthquake using coordinated successfully completed assessments of more financial and technical resources provided by than 430,000 buildings. Moreover, during the IDA, the United Nations, the European Union first half of 2018, more than 16,000 masons (EU), and the Inter-American Development Bank and engineers were trained in paraseismic (IDB). Continuing their efforts, IDA, EU, and IDB construction. carried out a joint mission in early February 2010 to coordinate with the government on emergency BANK GROUP CONTRIBUTION support. In the wake of the 2010 crisis, the World Bank, through the International Development Coordination meetings on early recovery actions Association, provided US$65 million for the IIERP held with other development partners, including as a rapid response to the disaster. Thanks to the the Sector Coordination Group for Transport, results delivered by the project, the government the United States Agency for International requested additional financing in 2012 to scale up Development (USAID), the United States activities, which IDA provided in the amount of Treasury, and the United States Army Corps of US$35 million. Another additional financing in Engineers, the Spanish Aid Agency, the Canadian the amount of US$2.8 million was subsequently Agency for International Development, and provided in 2016 to finance the design of an the French Development Agency, resulted in effective monitoring plan and baseline data an effective and efficient preliminary strategy collection. for early, medium, and long-term recovery and reconstruction and valued technical and policy advice to Haiti’s government. This collaboration PARTNERS further strengthened the National Disaster Risk The project benefited from the collaboration and Management System and facilitated coherent and coordination of partners, which helped maximize effective implementation of identified activities. PAGE 74 BENEFICIARIES The newly paved road linking Cap Haitien to the village of Labadie was inaugurated in February 2018. Jean Oril drives a tap-tap (a large van used for public transportation) and is president of the transport operator union of Labadie. “I have been working on this route for 12 years. I drive people working at Labadie, students, workers.… Before, we could only drive 15 or 16 people and make a maximum of three trips a day. Merline Pierre, Haiti. Photo: World Bank However, with this new road, we can make six to eight trips per day. Prior to the rehabilitation Merline Pierre lives in Labadie and commutes to of the road, it was impossible to find a tap-tap Cap Haitien to attend high school. after 4 p.m. If one needed to get to the hospital, “Many friends of mine have had to move to Cap he or she would have to find her own means of Haitien because of the road. The trip was too transportation, because there was none available painful, and they were nearly always late. Before to get you there.” the rehabilitation of the road, the trip took more than an hour. The road was in bad condition, with lots of rocks, and passengers would often get sick. Now, with the new road, the trip only takes 20 to 25 minutes.” MOVING FORWARD The approach of blending early recovery activities with long-term reconstruction planning served as a model for several post-disaster recovery and reconstruction projects subsequently financed Jean Oril, Haiti. Photo: World Bank by the World Bank. The IIERP enabled IDA to PAGE 75 step up its support for Haiti’s recovery efforts and Haitien–Labadie road fit into the ongoing IDA- to institutionalize longer-term reconstruction funded Cultural Heritage Preservation and Tourism planning. These results and gains are being Sector Support Project, which capitalizes on such capitalized, scaled up, and sustained through achievements to deliver better results and maximize follow-up operations, including the Statistical and sustain impact. Capacity Building Project on the PFM side. On the infrastructure side, improved tourism development prospects provided by the rehabilitated Cap Cap-Labadie Road, Haiti. Photo: Frantz Zidor / World Bank PAGE 76 Aerial view of a sector of the Cap-Labadie Road, Haiti. Photo: World Bank PAGE 77 Wind turbines, Jamaica. Photo: World Bank IMPROVING ENERGY EFFICIENCY AND SECURITY IN JAMAICA JAMAICA JAMAICA ENERGY SECURITY AND EFFICIENCY ENHANCEMENT PROJECT Improved energy efficiency and security of Jamaica through the implementation of Jamaica’s National Energy Policy Specific results include: (i) legal, regulatory systems and framework and respective energy sector institutions strengthened; (ii) greater investments in non-oil sources of generation, (iii) improved energy efficiency policy and implementation (through expanded and renewed energy efficiency testing chambers); (iv) access to financing for small-medium enterprises to implement energy efficiency/ renewable energy project. Population: 2,890,299 GDP (billions): US$14.78 GNI per capita: US$4,760 IBRD/IDA lending commitments approved in FY18: 15 million New and supplemental Projects approved in FY18: 1 PAGE 79 CHALLENGE available mainly toward technical assistance, Jamaica’s energy sector had been characterized by focusing on the pressing core issues affecting high energy costs and high dependence on imported the sector. These included: (i) strengthening the petroleum products (in 2008, 94 percent of all regulatory and institutional framework to improve energy used was imported). In addition, the energy sector performance, increase private investment, sector was a mix of several private and public and transition to cleaner fuels (for example, institutions, resulting in complicated decision- by introducing a liquefied natural gas (LNG) making processes and coordination challenges. program to support off-oil diversification); and The resulting high levels of inefficiency led to high (ii) developing energy efficiency and renewable electricity costs and tariffs. energy potential (for example, by expanding the energy efficiency lab testing center in the Bureau of The country’s goals for improvements included Standards, carrying out feasibility studies for small reducing the cost of electricity and eventually hydro sites, promoting wind and solar generation, lowering prices; lowering the sector’s vulnerability and providing a line-of-credit for private sector to oil price fluctuations by reducing its reliance investment in energy efficiency and renewable on imported petroleum products; strengthening energy investments). the sector’s regulatory framework by providing clear policy directions, regulations, and incentives; mobilizing private sector financing for energy Jamaica’s energy sector infrastructure; and reducing greenhouse gas emissions. had been characterized by high energy costs APPROACH and high dependence When the Jamaica Energy Security and Efficiency on imported petroleum Enhancement Project was approved, Jamaica’s macro-fiscal situation prevented any large full-scale products. approach to addressing the issues. As a result, the World Bank directed the limited resources PAGE 80 Natural Gas stations, Jamaica. Renewable Generation, Jamaica. Photo: Science Energy & Technology Map Photo: Science Energy & Technology Map RESULTS • Technical assistance aided in updating While all results noted cannot be attributed the Electric Lighting Act of 1890 with the solely to the project, the Government of Jamaica modernized Electricity Act in 2015, which recognized that they could not have been achieved encompasses a comprehensive energy strategy without it. Most notably, oil dependency decreased that includes renewable energy, biofuels, energy from 95 percent (2010) to 71 percent (2017), and from waste, energy consumption and efficiency, it is expected to fall further, to approximately and carbon trading. 50 percent, by the end of 2019. The regulator • Market conditions were established for determined the impact of this shift: Under the developing an Integrated Resource Plan current matrix and with equal conditions, the tariff (IRP) that projected electricity demand over a would have been US$0.1318 per kilowatt hour 20-year period to help determine generation (kWh), as compared to the 2012 generation cost capacity and technologies needed. (US$0.188/kWh); projecting to 2020, the cost would be US$0.1253/kWh. • Energy sector agencies were realigned, resulting in better defined roles, responsibilities, and In addition, the project supported the following coordination and updating key players to results: international best practices. The Generation PAGE 81 Procurement Entity and the Government • Through the Development Bank of Jamaica Electrical Regulator were also created. (DBJ) line-of-credit, 55 loans, totaling US$5.38 million, were disbursed for private sector • Technical assistance for planning and energy efficiency projects. regulation of the gas sector facilitated more than US$1 billion of private sector investment in LNG (including two new plants and Renewable energy associated infrastructure — a 120-megawatt generation doubled from (MG) plant installed on the country’s north 9% at project start to 17% coast and an additional 190 MW plant due to become operational in 2019 — to replace by the end of 2017. outdated oil plants). • Renewable energy generation doubled from BANK GROUP CONTRIBUTION 9 percent at project start to 17 percent (15.4 The World Bank, through the International Bank percent from large plants) by the end of 2017, for Reconstruction and Development (IBRD), following the determination that the country’s provided US$15 million, of which US$14.5 million grid could absorb increased renewable were disbursed. Absent prevailing macro-economic energy sources and the development of new constraints, the amounts would have been regulations, market mechanisms, and tariff higher. Under the DBJ line-of-credit, however, options. a private sector financing market was created, • Feasibility studies determined locations for six leading 12 additional lenders to participate by hydro sites for generation plants. extending financing for energy efficiency and renewable energy of 3.08 billion Jamaican dollars • Expanded and refurbished energy efficiency (approximately US$28 million). testing chambers aided compliance with the country’s new energy efficiency standards. BENEFICIARIES The population of Jamaica has benefited from (i) having greater energy security through the PAGE 82 diversification of the energy matrix and reduced MOVING FORWARD reliance on imported oil; (ii) reducing energy costs The government of Jamaica is implementing the for the Jamaican population, with the average tariff new Electricity Act and issuing an Integrated falling from US$0.40 per kWh to around US$.23 Resource Plan. In addition, new cleaner power per kWh; (iii) reducing the energy cost burden plants are expected to come online by 2020, for small- and medium-sized enterprises through replacing old, inefficient, oil-based power plants, energy efficiency measures; and (iv) providing thus improving resiliency by reducing dependency the overall population with options for obtaining on foreign oil. appliances with improved energy efficiency. Solar panels instaled in a poultry farm, Jamaica. Photo: World Bank PAGE 83 Forests and Climate Change Project, Mexico. Photo: Jessica Belmont / World Bank IMPROVING LIVELIHOODS AND MITIGATING CLIMATE CHANGE IN MEXICO’S MEXICO FOREST COMMUNITIES STRENGTHENING FOREST RESOURCE MANAGEMENT AND INCREASING INCOME OPPORTUNITIES Through this project, rural communities gained planning and implementation support to increase forest conservation, production, and productivity, leading to strengthened forest resource management and increased income opportunities. Community-managed forest areas under sustainable management practices doubled to almost four million hectares during project implementation. By managing forest assets more sustainably, deforestation decreased by 25 to 50 percent in project areas. Population: 129,163,276 GDP (trillions): US$1.15 GNI per capita: US$8,610 IBRD/IDA lending commitments approved in FY18: 406 million New and supplemental Projects approved in FY18: 3 PAGE 85 CHALLENGE Mexico’s forests are home to more than 12 Mexico’s forests are million people, most of whom live in poverty and directly depend on local natural resources. While home to more than 12 forests provide important strategic, social, and million people, most of environmental contributions to Mexico’s economy whom live in poverty and and local livelihoods, they face a number of pressures. directly depend on local natural resources. The forest sector overall lacks adequate local management, long-term vision, and commitment to sustainability by the communities that own 61 APPROACH percent of the country’s forests. Only 15 percent of The Mexico Forests and Climate Change Project the project’s targeted 15,584 communities managed was part of a package of World Bank engagement their forests in accordance with an approved forest supporting Mexico’s ambitious Forests and Climate management plan. Change agenda within the overall framework of its National Development Plan and vision for Mexico also faced the challenge of high rates of Reduction of Emissions from Deforestation and deforestation and forest degradation, the direct Forest Degradation (REDD+). To foster effective drivers of which include conversion of forest lands community forest management, the project to pasture and agriculture, unsustainable logging, aimed to strengthen forest communities’ social overgrazing, and pests and diseases. Some of the organization and managerial and technical skills to underlying causes include insufficient alignment of help ensure the longer-term sustainability of rural policies, institutions, and programs across sectors, a investments and improve livelihoods. Within this deficient incentive framework for sustainable forest context, the following elements were incorporated use, and forest communities’ insufficient capacity into the project design: (i) development objectives and access to markets. aimed to strengthen communities’ social organization and sustainable forest management PAGE 86 Forests and Climate Change Project, Mexico. Photo: Jessica Belmont / World Bank to generate additional income from forest approaches supporting integrated conservation products and services and to reduce emissions agriculture and forestry investments; and (iii) key from deforestation and forest degradation; (ii) outputs sought included implementation by more project activities provided capacity building and communities of sustainable forest management financial support to communities working to and conservation schemes, such as their increased improve forest conservation, management, and participation in Payment for Environmental implementation of innovative forestry production Services (PES), community silviculture, and value techniques, to increase forest production and chain development programs. Outputs also aimed productivity, and to foster economic development to diversify forest income opportunities and reduce by diversifying and promoting new forestry income net deforestation and forest degradation rates in options, including through innovative REDD+ selected landscapes. PAGE 87 RESULTS gigagrams of CO2 equivalent per year at project Under the project’s forest-sector demand-driven completion. incentive programs, 265,632 beneficiaries were • Over the course of project implementation provided with the tools (both capacity building (November 2012 – February 2018), forest and investment support) to manage forest communities’ capacity to reach a high level assets sustainably, including by enhancing the of economic development grew by 75 percent contribution of forests to climate change mitigation through their increased ability to diversify and adaptation, promoting and strengthening forest forest production, adopt new technologies, value chains, and developing innovative REDD+ access forest markets, and increase their approaches. Key results include: income. • The forest area managed by communities under sustainable management practices doubled BANK GROUP CONTRIBUTION during project implementation, and at project The World Bank, through the International Bank completion in 2018, this area represented for Reconstruction and Development (IBRD), 3,935,984 hectares (ha), a significant increase provided $350 million to the project. The project of 1,833,358 ha compared with the 2012 was part of a package of World Bank engagement baseline of 2,050,626 ha. in Mexico spanning over two decades in support of the country’s efforts to improve forest management • The increase in the number of communities under its ambitious Forests and Climate Change sustainably managing their forests significantly agenda. The Bank’s Mexico Forests and Climate reduced forest degradation and deforestation. Change Project brought together financial and Support through Payment for Environmental analytical instruments to comprehensively and Services (PES) resulted in a 25 to 50 percent programmatically support the forest sector. In reduction in deforestation in project areas. addition to the IBRD loan, other project financing Project support also led to a 5 percent annual included US$42 million in combined Forest average reduction in greenhouse gas emissions, Investment Program (FIP) loan and grant proceeds. from 11,469 gigagrams of carbon dioxide Analytical support was provided via a grant from (CO2) equivalent per year at baseline to 10,907 PAGE 88 the Program on Forests (PROFOR) to develop a roadmap for aligning forest and agriculture investments; a grant from Development Economics (DEC i2i) to assess the impacts of the project’s PES program; and an additional grant from PROFOR to help develop Mexico’s REDD+ intervention model. PARTNERS The experience, capacity, and commitment of Beneficiaries of the Forests and Climate Change Project, Mexico. the implementing agency, Mexico’s National Photo: Jessica Belmont / World Bank Forestry Commission (CONAFOR), were key BENEFICIARIES factors in the project’s success. CONAFOR was The project primarily benefited marginalized and particularly active in detecting issues that might vulnerable forest communities. In interviews, hamper the implementation progress, in proposing project beneficiaries remarked that the project viable solutions, and in reaching agreements helped provide their families with steady income with counterparts. CONAFOR’s commitment and that they no longer considered it necessary to fostered a strong network of donor partnerships. migrate to seek job opportunities elsewhere. The Inter-American Development Bank (IDB) supported implementation of two other FIP Antonio Romero is a technical forest advisor in the projects, and other donors, including Norway San Pablo Ejido (community) in Durango, the state and the United States, supported the government with the greatest area of timber production and the in developing its REDD+ enabling framework. most livestock. Other Mexican government agencies supporting “Migration has to do with job opportunities, with rural development, including the Secretariat the possibility to develop economically, both at the of Agriculture and Rural Development and the individual and the family level. In the case of San Secretariat of Environment and Natural Resources, Pablo, we are beginning to reap the rewards from paved the way for a collaborative, productive, and sustainable use of our sawmills and our forests.” efficient interinstitutional working environment. PAGE 89 territory, and (ii) focusing on productivity to enable Project beneficiaries forest-dependent people and enterprises to more fully reap the benefits of forest landscapes. remarked that the project helped provide their families with steady income and that they no longer considered it necessary to migrate to seek job opportunities elsewhere. MOVING FORWARD Several operations will support project sustainability as well as the scale-up of its development outcomes. The IBRD/ISFL Strengthening Entrepreneurship in Productive Forest Landscapes Project (2018–2023) builds on this project’s successes and ensures continuity in the areas of community forest management and PES. It also supports innovative new approaches, Beneficiary of the Forests and Climate Change Project, Mexico. including (i) increasing the economic and Photo: Jessica Belmont / World Bank environmental benefits of project interventions by promoting the integration of productive forest management activities along with forest conservation and restoration activities in the same PAGE 90 IMPROVING ENERGY FOR AGRICULTURAL COMPETITIVENESS MEXICO IN MEXICO BIODIGESTERS, SOLAR PANELS, AND SMALL- TO MEDIUM-SIZED FARMS Starting in 2009, the blended Global Environment Facility (GEF) grant and World Bank loan Sustainable Rural Development project (FIRCO) promoted adoption of environmentally sustainable technologies in agribusinesses throughout Mexico. By the end of the project, 1,842 agribusinesses had adopted 2,286 improved renewable energy or energy efficiency technologies. This transition to improved energy technologies resulted in an overall reduction of 6.02 million tons of carbon dioxide emissions, representing a savings of 382.14 kilowatt hours of energy. Population: 129,163,276 GDP (trillions): US$1.15 GNI per capita: US$8,610 IBRD/IDA lending commitments approved in FY18: 406 million New and supplemental Projects approved in FY18: 3 PAGE 91 CHALLENGE competitiveness and environmental sustainability In 2009, the solar market in Mexico was nascent of agriculture through energy efficiency use of and renewable energy and energy efficiency renewable energy and biomass technologies. technologies were out of the reach for even medium-sized or large farms. Energy, an APPROACH expensive input into agricultural production and The Bank and the government of Mexico agreed to transformation, hindered the growth of small- and work through FIRCO, a decentralized agency of the medium-sized businesses. In addition, agriculture Ministry of Agriculture (Secretaria de Agricultura, was a significant source of greenhouse gas (GHG) Ganaderia, Desarrollo Rural, Pesca y Alimentacion, emissions, representing 7 percent of Mexico’s or SAGARPA at the time). The project provided total emissions, mostly due to the use of inorganic matching grants through subprojects to fertilizers and anaerobic decomposition of organic agribusinesses on a demand-driven basis. FIRCO materials. Together the government of Mexico and had offices throughout the country and was able the World Bank sought a way to bolster the growing to hold promotional events and provide targeted solar market, make sustainable technologies more technical assistance for the development of accessible to farmers, and lower agricultural GHG proposals and implementation of subprojects. Open emissions. The strategy selected was to promote calls for proposals helped to identify interested small- and medium-sized agribusinesses, and FIRCO helped beneficiaries do energy diagnostics and prepare business plans for integrating new technologies into current operations. In its early years, the project was supported by a provision allowing private power producers (PPPs) to inject energy into the national grid and receive energy credits. In the project’s later years, agribusinesses benefited from the 2015 Law of Energy Transitions, which allowed PPPs to sell excess energy into the grid. Thus, through the installation of energy Map of installed technologies by type, Mexico. Photo: FIRCO PAGE 92 efficient and renewable energy technologies, agribusinesses saved money on inputs and made money on energy sales. The project’s list of supported technologies included solar panels, solar thermal, biodigesters, turbines, and energy efficiency appliances (for example, efficient milk chillers). Although the project was largely demand-driven, FIRCO was also conscious of meeting goals for reducing GHG emissions, and Solar panels installed by project, Mexico. Photo: FIRCO in the early years it emphasized use of biodigesters, which eliminated two major contributors of GHG RESULTS emissions: biodigesters contained the anaerobic Through a continually refined model, strong digestion of manure, thus reducing methane GHG buy-in from the government, and demonstrated emissions, and their output (slurry) was organic demand from farmers, the FIRCO project achieved fertilizer, eliminating the need for synthetic several key results, contributing to Mexico’s overall fertilizers. development. These include: • 1,842 small- and medium-sized agribusinesses The project’s list of adopted 2,286 different renewable or energy supported technologies efficient technologies. included solar • Carbon dioxide (CO2) GHG emissions were panels, solar thermal, reduced by 6.02 million tons, and 382.14 biodigesters, turbines, million kilowatt hours (KWh) of energy were saved over the course of the project. and energy efficiency appliances. • In turn, the project produced 221,624 megawatts of biomass energy through use of biodigester technologies. A further benefit PAGE 93 of these technologies was the processing of supported biodigesters experienced these manure and slaughterhouse waste, which benefits. improved overall farm conditions and produced • A solar market developed. Prior to the of biofertilizers, an additional income source project, Mexico’s solar market was nascent, for farmers. with the 2007 Mexican National Climate • Agribusiness competitiveness improved due to Change Strategy identifying huge potential for savings accrued from reduced use of fossil fuels solar market growth. Through the project’s and from use of motor generators to produce demonstration effects and beneficiary demand, electricity, excesses of which could be sold to the domestic market for energy efficient and the grid. renewable energy technologies accelerated, aided by global decreases in the prices of solar • The 2015 Law of Energy Transitions allowed panels. Private Power Producers (PPPs) (including agribusinesses) to sell their excess energy • The project built capacity within SAGARPA production into the grid and the 739 recipients and FIRCO for monitoring, reporting, and of project-supported solar photovoltaic (PV) verification (MRV) of CO2e equivalent in systems and the 419 recipients of project- the field. The government can now measure emissions reductions, emissions avoided, fossil- fuel displacement, and critical related variables by subsector and by technology used. BANK GROUP CONTRIBUTION The World Bank supported the original FIRCO project through an International Bank for Reconstruction and Development (IBRD) loan of US$50 million and a Global Environment Facility (GEF) grant of US$10.5 million. In November 2012 Solar thermal in Sinaloa, Mexico. Photo: FIRCO an Additional Financing was approved for US$50 PAGE 94 million to scale up the investment component of the project, with emphasis on promoting the project’s most successful technologies: biodigesters, solar heating, and solar PV. PARTNERS The government of Mexico and the Germany Development Agency (GIZ) have a strong history of collaboration on the use of solar technology in Juana Zarate produce different types of cow’s milk cheeses, Mexico. Photo: Quesos La Doñita agriculture. During the implementation period of the project, GIZ contributed a solar market BENEFICIARIES development study and regularly provided Beneficiaries of the project were small- and technical assistance to the government on different medium-sized agribusinesses working within available solar technologies. In addition, the Mexico’s agricultural production value chains, Food and Agriculture Organization of the United mainly fruits, vegetables, and dairy, beef, or pork Nations provided invaluable technical support for livestock. implementing the project, including development of the baseline and final evaluation tools. The impact of these technologies can be shown through their impact on beneficiaries. For example, in Neutla, Comonfort Mexico, Juana Zarate Zarate makes her living from the production of different types of cow’s milk cheeses. Before the support from the project, she consumed 7,832 kgs of liquid propane gas (LPG) annually, with a cost of US$53,101 pesos annually (roughly the equivalent of US$2,760). The project helped Juana to install a solar thermal system to substitute the need for LPG Biodigester in Puebla, Mexico. Photo: FIRCO in the cheese pasteurization process. PAGE 95 The system has the benefit of eliminating GHG emissions from the use of LPG and saving Juana “The change generated money. Juana said: “the change generated by this project has been valuable. It has brought us the by this project has been satisfaction of being able to change the way in valuable. It has brought which we work by transforming our business to us the satisfaction of be environmentally friendly and creating jobs for people in the community all the while using the new being able to change the system that displaces 6,297 kgs of LPG a year and way in which we work by saves us $42,694 pesos per year (roughly US$2,215 transforming our business per year).” to be environmentally MOVING FORWARD friendly and creating Following closure of the FIRCO project, jobs for people in the Mexico’s government continued to promote the community”. use of renewable energy and energy efficiency technologies through ongoing provision of matching grants under the “natural fibers” program within the Ministry of Agriculture. In the private sector, many former FIRCO project beneficiaries continue to invest in additional technologies using their own resources. Finally, the solar industry bolstered by the project continues to thrive. PAGE 96 Biodigester, Mexico. Photo: Mexico Government PAGE 97 Photo: Peru Ministry of Energy and Mines PROMOTING RURAL ELECTRIFICATION IN PERU PERU BRINGING ELECTRICITY TO PERU’S RURAL COMMUNITIES AND PROMOTING ITS USE BY SMALL-SCALE PRODUCERS Through distribution companies, Peru provided electricity to more than 36,500 low- income rural households, small businesses, and public facilities, including 11,915 solar home systems installed in isolated areas. In addition, the distribution companies, working with nongovernmental organizations (NGOs), helped 4,376 small rural producers to adopt electrical equipment to help improve their incomes and productivity. Population: 32,165,485 GDP (millions): US$211.38 GNI per capita: US$5,960 IBRD/IDA lending commitments approved in FY17: 165 million New and supplemental Projects approved in FY17: 4 PAGE 99 CHALLENGE Ministry of Energy and Mines (MEM) between Some rural areas of Peru lack infrastructure, 2006 and 2013. The approach followed in both contributing to a lower quality of life, poor projects was to support electricity distribution medical care and education, and limited economic companies in preparing, executing, and operating opportunities. In addition, lack of public lighting rural electrification subprojects as part of their lessens nighttime security in these areas, and use of commercial operations. The resulting subprojects kerosene lamps contributes to respiratory illnesses delivered new connections in remote communities that especially affect women and children. by extending grids or installing individual solar home systems. Higher poverty rates in rural areas and the gap in quality of life between rural and urban areas, highlight the importance of investing in basic infrastructure. The government has made rural electrification a high priority, and it has sought out innovative approaches to achieving it. These approaches include using solar home systems (SHS) to serve remote populations and working with electricity distribution companies and NGOs to promote productive uses of electricity that increase electricity demand. These efforts are aimed at both improving the viability of rural electricity systems and strengthening the development impact of rural electrification. APPROACH The Peru Second Rural Electrification Project (RE2) further developed the model used in the first Rural Electrification Project (RE1) executed by the Photo: Peru Ministry of Energy and Mines PAGE 100 Encouraged by RE1’s pioneer effort in Latin RESULTS America, Peru’s energy regulator (Organismo RE2 had three main features, initially developed Supervisor de la Inversion en Energia y Mineria) for the RE1 project: (i) Electricity distribution introduced a tariff for regulated electricity service companies made new connections and provided using solar home systems. The RE2 project regulated service. (ii) Electricity connections were installed 11,915 SHS and developed online tools based on grid extension or off-grid solar home to help the distribution companies to optimize systems. (iii) Rural producers were encouraged to regulated service while reducing the costs of using adopt electrical equipment. solar home systems. The project also provided training for the distribution companies’ staffs. The project’s outcomes include: • More than 36,500 households and small RE2 continued to promote productive uses of enterprises and public facilities, representing electricity through distribution companies working about 142,900 people, benefited from the new with NGOs and by disseminating information about electricity connections made during the life of the RE2 experience throughout Peru and Latin project. The project also generated sufficient America. capacity to provide new connections to an additional 26,100 people after project closure. A total of 4,376 small rural producers, of which • These connections included 11,915 solar home systems for households in remote rural 1,569 (36%) were women, areas, representing about 47,670 people. The adopted electrical project developed a web platform and mobile equipment to increase applications for lower-cost servicing and monitoring of the solar home systems. their productivity and incomes. • Seven state-owned distribution companies and one private concessionaire participated in and cofinanced rural electrification subprojects in 13 regions. PAGE 101 • A total of 4,376 small rural producers, of BANK GROUP CONTRIBUTION which 1,569 (36 percent) were women, The World Bank, through the International Bank adopted electrical equipment to increase their for Reconstruction and Development, approved a productivity and incomes. loan of US$ 50 million, US$ 43.83 million of which was used by the project closing date. The Bank • A two-day forum was held under the project to contribution financed 86.5 percent of the costs of share Peru’s productive uses experience with Component 1: Rural Electrification Subprojects; 200 representatives from producers, electricity 38.9 percent of Component 2: TA for Rural companies, ministries, local governments, Electrification; and 14.1 percent of Component 3: NGOs, and other participants from Argentina, Project Management, all excluding the value-added Bolivia, Colombia, Haiti, and the United States. tax (VAT). In total, the Bank financed 76.3 percent • The project held 280 meetings at which 9,700 of the cost of the project, excluding the front-end beneficiaries received training on the efficient fee and VAT, and 66.8 percent of the costs and safe use of electricity. The safety campaign including these elements. also distributed 12,300 training kits. PARTNERS • Useful data for national and international The Bank loan was complemented by US$ 7.37 evaluations of rural electrification were million from the government of Peru. MEM obtained through socioeconomic impact implemented the project together with seven assessments of RE1’s rural electrification state-owned distribution companies and one efforts and its promotion of productive uses for private concessionaire, which contributed US$ 6.38 electricity components. million or 11 percent of the total cost (excluding • The project prepared technoeconomic and VAT). Including VAT, the seven public distribution social/environmental studies for 21 small companies and one private concessionaire hydropower projects in Peru’s major basins. contributed US$ 14.42 million or 22 percent of the cost. Local NGOs were contracted by MEM to encourage small producers to adopt electrical equipment, working together with distribution PAGE 102 companies, government programs at local, regional 3 soles per kilo. With the help of RE2, oregano and national levels, and technical institutes. producers adopted electrical equipment that increased the quality of their product, enabling BENEFICIARIES them to sell it for 9 soles per kilo. Two examples highlight specific impacts on beneficiaries from RE2. Rosa Chacón, the nursing MOVING FORWARD technician of Atumpampa, La Libertad, says she The government has introduced legal measures to can now attend to patients either day or night. institutionalize the RE project model, permitting Without electricity, attending patients was possible MEM to transfer resources to distribution only until 5 p.m. In addition, electricity now powers companies for rural electrification subprojects. a refrigerator that permits use of vaccines. Tools for commercializing SHS developed under RE2 will be useful to the massive SHS program now Justa Alférez, a beneficiary living in Toquela, Tacna, underway as well as to the distribution companies. is one of 60 oregano producers. She recounts The General Directorate of Rural Electrification is that she and her fellow producers used to process using the value-chain approach to continue building oregano by hand, dry it in the sun, and sell it for capacity for productive uses of electricity, financed by its Rural Electrification Fund. Annual operating reports from the electricity companies now include an indicator on productive clients. Replication of the RE1/RE2 model is being considered in other countries and regions. Beneficiary of the Rural Electrification Project, Peru. Photo: FONER PAGE 103 Photo: Peru Ministry of Energy and Mines IMPROVING BASIC EDUCATION IN PERU PERU STRENGTHENING CAPACITY TO EVALUATE STUDENT LEARNING, INSTRUCTIONAL PRACTICE, AND SCHOOL LEADERSHIP The Basic Education Project achieved, and in several cases exceeded, its objectives of improving the Ministry of Education’s (MINEDU) capacity, despite challenging and changing implementation conditions. This success reflects the government’s long-term institutional commitment to systemwide reforms over time and benefited the 5.7 million students in the public-school system as well as current school principals and teachers aspiring to school management positions. Population: 32,165,485 GDP (millions): US$211.38 GNI per capita: US$5,960 IBRD/IDA lending commitments approved in FY17: 165 million New and supplemental Projects approved in FY17: 4 PAGE 105 CHALLENGE average, its schools graduated high numbers of In 2012, the government of Peru was highly students lacking basic mastery of mathematics committed to tackling the challenge of achieving and literacy skills. Of the nine Latin American more inclusive growth and reducing social gaps. countries participating in the 2009 Programme Improving the country’s human capital base was for International Student Assessment (PISA) exam considered essential to its future success. Ensuring administered to a sample of 15-year-old students, low-income and vulnerable children access to good- Peru finished last. In response, the government quality basic education was key to unleashing their launched a results-based budgeting program for continuing skills formation and future productivity. student learning, Programa de Educación Logros While Peru had near-universal primary education, de Aprendizaje (PELA, Education Program for and access to preschool education in the preceding Learning Achievements) to raise learning outcomes five years had tripled, and had raised the secondary in public schools. school enrollment rate above the regional Basic Education school in Villa El Salvador, Peru. Photo: Luis Ruiz / Peru Ministry of Education PAGE 106 PELA. The government’s budgetary framework Of the nine Latin linked the financing of the project’s activities to expected results in terms of improvements in American countries student learning. Following a sectorwide approach participating in the (SWAp), the project financed a subset of PELA 2009 Programme for activities, using PELA’s results-based approach International Student of loan disbursements triggered by MINEDU’s achievement of agreed disbursement-linked Assessment (PISA) exam indicators. The project was restructured several administered to a sample times, most importantly to support implementation of 15-year-old students, of the 2012 Teacher Reform Law by financing the design of evaluation instruments and processes Peru finished last. required to make recruitment and promotion merit- based and to initiate performance evaluation and feedback processes for teachers. APPROACH The Basic Education Project focused on three RESULTS critical aspects of PELA that together were Over its five years of implementation from 2013 expected to help achieve Peru’s high-level objective to 2018, the Basic Education Project successfully of improving student learning outcomes: (i) achieved its objective of improving MINEDU’s scaling up and benchmarking student learning capacity to evaluate the following elements of basic assessments; (ii) designing and implementing education: (i) student learning, (ii) instructional teacher evaluations; and (iii) evaluating and practice, and (iii) school leadership, as described training school leaders. The Ministerio de below. Educación (MINEDU, Ministry of Education) had introduced a results-based approach to prioritizing • Student Learning in Basic Education: public resource allocation to a comprehensive set MINEDU’s capacity to assess student learning of sectorwide strategies and activities, including outcomes has been strengthened through PAGE 107 the administration of four additional cycles resulting in the hiring of 19,069 teachers and (grades) of sound national assessments in the promotion of 49,763. at least two subject areas at the preschool, • School Leadership in Basic primary, and secondary levels (grades 2, Education:MINEDU’s capacity to evaluate 4, 6, and 8). These assessments have been school leadership has resulted in staffing 18,477 reported at the national, regional, and school school management positions using competitive levels, and all have been analyzed. MINEDU evaluation of more than 53,699 candidates. also participated in several international Managerial incumbents were evaluated to assessments of student learning outcomes and maintain their positions, and high-ranking carried out several surveys to evaluate student teachers seeking leadership positions were also development progress; MINEDU aims to use evaluated. these findings to revise learning curricula and teacher training. MINEDU’s capacity • Instructional Practice in Basic Education: MINEDU’s increased capacity to evaluate to evaluate school instructional practices has resulted in leadership has resulted the publication and dissemination of a in staffing 18,477 school comprehensive report analyzing pedagogical practices over the course of four national management positions studies of classroom instructional practice. using competitive Other results include carrying out, analyzing, evaluation of more than and disseminating a study to measure teachers’ 53,699 candidates. use of instructional time in primary and secondary schools, and in 2017, a first round of performance evaluations for preschool BANK GROUP CONTRIBUTION teachers. MINEDU also designed, piloted, The World Bank, through the International and implemented instruments for teacher Bank for Reconstruction and Development recruitment and merit-based promotion, PAGE 108 Basic Education school in Atahualpa, Rioja. Peru. Photo: Luis Ruiz / Peru Ministry of Education (IBRD), provided US$25 million to the Basic BENEFICIARIES Education Project. This was a small but important The project benefited and will continue to benefit contribution to PELA. Total project costs were the 5.7 million students in Peru’s public schools. US$186 million at closing. The Bank contributed Teachers aspiring to school management positions more than financing, however; it also contributed will also benefit from the opportunity to participate lessons drawn from cross-sectoral experience in the in a transparent school principal selection process. design of results-based financing operations and Formal appointment through this system will just-in-time implementation support that made it benefit current principals as well, 75 percent of feasible to adjust the project to address government whom were not previously formally appointed. priorities for further strengthening its objectives, Education administrators, school personnel, such as support for implementation of the Teacher and communities will benefit from an expanded Reform Law. student assessment system that generates annual PAGE 109 information on student learning results across all these in the future has been strengthened. Several schooling cycles. Parents receiving feedback on programs and instruments have been cemented, their children’s learning outcomes through tailored either by legislation or as part of the ministry’s reports will benefit from having information with internal procedures. Further reforms in primary which to monitor their children’s progress over and secondary education are being supported under time. the ongoing program Boosting Human Capital and through Productivity Development Policy Financing MOVING FORWARD (DPF), with a deferred draw down option, for As a SWAp, the project helped establish and efforts to improve the quality of human capital in implement important tools used by MINEDU staff areas covered by the project. directly, and the ministry’s capacity to implement Basic Education school in Villa El Salvador, Peru. Photo: Luis Ruiz / Peru Ministry of Education PAGE 110 IMPROVING THE QUALITY OF HIGHER EDUCATION IN PERU PERU PROMOTING EFFECTIVE EVALUATIONS, FINANCING IMPROVEMENT PLANS, AND PROVIDING INFORMATION With project assistance, Peru developed and implemented a Higher Education Quality model, approved under its National Education Project 2021, which provides the framework for all public entities responsible for higher education quality assurance and articulates evaluation, supervision, licensing, and accreditation processes. The Ministry of Education reports that during implementation of the National Education Project 2021, the higher education system progressed more than it had in the previous 30 years. Population: 32,165,485 GDP (millions): US$211.38 GNI per capita: US$5,960 IBRD/IDA lending commitments approved in FY17: 165 million New and supplemental Projects approved in FY17: 4 PAGE 111 CHALLENGE for professors; (vi) lack of an information system In 2012, Peru had mass tertiary education coverage prevented interested parties from differentiating in line with regional standards with a higher between programs; and (vi) Peru had not education enrollment rate of around 36 percent. established a higher education quality assurance Still, Peru’s higher education system suffered from system that could raise minimum standards and issues that impeded development of the human foster quality improvements. capital the nation required to sustain a growing economy: (i) higher education policy making was Peru’s higher education hindered by weak governance; (ii) universities and the higher education system as a whole were system suffered from characterized by insufficient funds and limited issues that impeded accountability; (iii) higher education institutions development of the were not accountable for their funding; (iv) the system was characterized by low levels and large human capital the nation variance in quality, including outdated programs, required to sustain a weak institutional capacity, insufficient teaching growing economy. equipment and laboratories, and low qualifications APPROACH The Higher Education Quality Improvement Project supported the government’s National Education Project 2021, which adopted a strategy to increase the quality and relevance of tertiary education by creating a higher education quality assurance system (HEQAS) providing an assurance framework across basic and higher education levels. The HEQAS had three goals: (i) to classify Students at a Higher Education Institute in Peru. Photo: José Alva / Peru Ministry of Education institutions and programs into two categories: met PAGE 112 minimum standards (accredited) or low quality RESULTS (not accredited); (ii) to make the classification Peru now has in place a solid system for licensing determinations available to the general public; and and accreditation and for assisting its higher (iii) to promote quality improvements in individual education institutions to achieve them. Under the higher education institutions and throughout the Bank project: system. The design of the Bank-financed project • A total of 1,383 self-evaluations and 456 considered lessons from experience with similar external evaluations were completed under a Bank-financed operations in Latin America, model established and financed by the project, specifically: (i) designing capacity building and which provided assistance through an online strengthening for evaluation, accreditation, and platform as well as by financing improvement certification; (ii) establishing comprehensive plans and external evaluations. The project academic information systems; and (iii) provided support to 135 higher education determining the relevance of institutional incentive institutions, of which 20 were from among the fund designs to maximize their effectiveness in country’s 50 universities and 115 were from diversified systems of higher education. Students at a Higher Education Institute in Peru. Photo: José Alva / Peru Ministry of Education PAGE 113 among the country’s 370 public institutes. intercultural bilingual teacher training In addition, financing under the Fund for institutions; and (v) strengthening research Quality Enhancement (Fondo de Estímulo de capacity in universities to meet the basic la Calidad, FEC) was provided to 60 public standards for licensing, improve research pedagogical and technological institutes that management capacity, and develop research required external evaluation for accreditation; competencies. nearly 80 percent of the institutes that received • The project supported an integrated system financing under the Project obtained the that organizes, consolidates, and makes necessary accreditation. available knowledge and information about the • The FEC provided financing to implement 257 higher education system. Information is being improvement plans, covering all of Peru’s 25 collected to feed the system with data provided regions, from nine calls for proposals. Five by the higher education institutions; by project were regular calls and the others targeted completion, the system had received more specific issues mandated by the University than 785,000 visits from faculty, students, Law: (i) digitalizing university research; graduates, and employers. (ii) strengthening technical institutes; (iii) establishing the Employment Education The project supported an Program; (iv) improving the quality of integrated system that organizes, consolidates, and makes available knowledge and information about the higher education system. Students at a Higher Education Institute in Peru. Photo: José Alva / Peru Ministry of Education PAGE 114 BANK GROUP CONTRIBUTION the next five years, bringing the potential The World Bank, through the International Bank number of student beneficiaries, over a 10- for Reconstruction and Development (IBRD), year horizon, to 1,135,433. The main direct provided $24.83 million to the Higher Education beneficiaries of the project, however, are the Quality Improvement Project. The Bank worked HEIs themselves. closely with the government to adjust the project • Indirect beneficiaries include employers, to its new institutional framework, including faculty who work at participating HEIs, passage of a new University Law and creation of a students’ families, and society at large (through new Organizational Rulebook for the Ministry of the information system), as well as other Education. stakeholders, such as research institutions. BENEFICIARIES MOVING FORWARD The main direct beneficiaries of the project are the The Bank project helped improve Peru’s HEQAS, nation’s higher education institutions (HEIs) and and several of the improvements supported by the students at those institutions. the project were anchored in legislation, including • HEIs benefit from a culture and practice the University Law and the University Quality of continuous quality improvement and Assurance Policy. Higher education institutions evaluation. It is envisaged that at least 250 on their own initiative are now incorporating the HEIs will benefit directly from the project’s use of improvement plans in their routine business financing and that about 600 HEIs will benefit models. The Bank, under the ongoing Boosting from the project’s capacity building activities. Human Capital and Productivity Development Policy Financing (DPF), is targeting key • Students and prospective students who attend productivity constraints, inter alia, and enhancing and graduate from accredited HEIs and/or the education policy framework to improve the from related programs benefit from the results quality of skills attained through Peru’s higher of the improvement plans. It is expected that education system. programs in key disciplines will undertake evaluation and accreditation processes within PAGE 115 Beneficiaries of the Social Inclusion Prgram in Cayara y Sarhua, Ayacucho. Peru. Photo: Peru Ministry of Development and Social Inclusion INCREASING SOCIAL INCLUSION IN PERU PERU EXTENDING SOCIAL PROGRAM COVERAGE Peru’s newly created Ministry of Development and Social Inclusion strengthened its systems and capacity to improve social program performance and to monitor social inclusion policy. The ministry substantially increased the coverage of all social programs, including early childhood development services, school feeding services and pensions. Population: 32,165,485 GDP (millions): US$211.38 GNI per capita: US$5,960 IBRD/IDA lending commitments approved in FY17: 165 million New and supplemental Projects approved in FY17: 4 PAGE 117 CHALLENGE Before the Ministry of Development and Social Inclusion (MIDIS) was launched, Peru’s social protection programs were characterized by a high heterogeneity, with different goals, target populations, eligibility criteria, and institutional structures. Before 2012, social protection was characterized by a high number of programs implemented by several agencies, including the Ministry of Labor, Ministry of Women, the Presidency of Council of Ministers, and Beneficiaries of CunaMas in Huanta, Peru. Photo: Peru Ministry of Development and Social Inclusion others. Programs included food assistance interventions (but without evaluations or process with an investment operation to support preliminary assessments and showing no impact the government in establishing the new sector on nutritional status), cash transfers, and other and ministry. The Social Inclusion Technical productive interventions. Peru had an urgent need Assistant Loan aimed to ensure that all systems and to strengthen and consolidate a comprehensive interventions needed for efficient implementation social inclusion sector as this unarticulated system of the ministry were in place, including a prevented citizens to access key social assistance comprehensive targeting system, management interventions. information systems, social registries, and others. APPROACH RESULTS To tackle this issue, the government of Peru The development objective of the project was prioritized creation of a new sector to bring the to strengthen MIDIS’s systems and capacity to scattered programs together under one new improve the performance of MIDIS’s programs ministry — MIDIS — and to strengthen the and to monitor social inclusion policy. Two coordination needed to boost synergies. From development-level outcomes were supported by the outset, the World Bank accompanied the the operation: enhancing MIDIS’s capacity to PAGE 118 better administer its programs, and improving of US$10 million was designed to contribute to its capacity to coordinate, monitor, and evaluate key MIDIS interventions at the program level. its policies. Over a period of seven years, the Specifically, the TAL was incorporated to provide ministry improved its systems and capacity by additional Technical Assistance resources at the strengthening the targeting system and producing operational level (including inputs needed to performance evaluations that showed high maintain the systems and programs and to enhance impacts on ECD outcomes for programs like Cuna quality standards). Mas; increase of productivity in ‘Haku Wiñay’, and overall satisfaction of users with services Over a period of seven delivered. Likewise, MIDIS developed the internal coordination and monitoring systems necessary to years, the ministry fulfil its roles, and it put in place regulations and improved its systems and standards to ensure effective functioning (including capacity by strengthening operational rules, implementation manuals, and ministerial decrees to establish and guide the the targeting system and actions of different directorates and units). producing performance evaluations that showed BANK GROUP CONTRIBUTION high impacts on ECD The World Bank, through the International Bank for Reconstruction and Development (IBRD), outcomes for programs. provided $10 million for the Social Inclusion Technical Assistance Loan (TAL). Through the PARTNERS project, the Bank, along with the government of A strong partnership formed among the key Peru, launched a Social Inclusion Development cooperating agencies supporting the launch and Policy Loan (DPL) of US$45 million to support consolidation of the newly created ministry: Unicef, MIDIS’s establishment. The DPL became effective WFP, UNDP provided technical assistance in their on July 2013 and closed on December 2013. respective areas of expertise. Periodic meetings led The Social Inclusion Technical Assistance Loan PAGE 119 by the ministry and several United Nations agencies transfers; Qali Warma provided school feeding helped coordinate investments and analytical work. services to 3,720,090 children; Contigo reached Similarly, the Bank contributed along with the 14,623 beneficiaries with disabilities, and Action United Nations Children’s Fund on early childhood Platforms for Social Inclusion (PAIS) provided development issues, with the United Nations services to 268,924 beneficiaries. Population Fund, and more recently, with the World Food Programme. Further coordination improvements are BENEFICIARIES MIDIS substantially increased the reach of needed to ensure all its social programs: Cuna Mas registered that subnational 165,449 children receiving early childhood governments can deliver development services; Juntos registered 706,646 families receiving conditional cash transfers; El comprehensive packages Fondo de Cooperación para el Desarrollo Social of services. (FONCODES) delivered services to 512,328 users; Pension 65 reached 541,240 elders with cash MOVING FORWARD After a period of maturation, MIDIS should tackle new challenges in the social inclusion area. Poverty in urban areas has increased significantly, according to 2017 figures from the National Institute of Statistics (Instituto Nacional de Estadística e Informática - INEI); monetary poverty affected 44.4 percent of the population living in rural areas, while in urban areas it reached 15.1 percent. This means that, for the first time, the absolute Beneficiaries of Action Platforms for Social Inclusion in Huanta, Peru. Photo: Peru Ministry of Development and Social Inclusion number of people living in poverty in Peru’s cities PAGE 120 (approximately 3.8 million) exceeded the total the levels of anemia in children under three years of number of the country’s rural poor (3.2 million). age remain extremely high and require a revamped Although social sector coordination improved with assistance model, for which some activities the creation of MIDIS, challenges remain at the implemented by the social inclusion sector (such local level. Further coordination improvements are as the family coach or acompañamiento familiar) needed to ensure that subnational governments can could be effective. deliver comprehensive packages of services. Finally, Beneficiaries of Qali Warma in Bellido, Peru. Photo: Peru Ministry of Development and Social Inclusion PAGE 121 Latin America and Caribbean Region The World Bank 1818 H Street, NW Washington, DC 20433, USA http://www.worldbank.org/results/ This book was produced by the Latin America and Caribbean Regional Operations Services Unit in collaboration with the Latin America and Caribbean External Communications Unit April 2019