Public Disclosure Authorized LATIN AMERICA AND CARIBBEAN Costa Rica Social, Urban, Rural and Resilience Global Practice Global Practice IBRD/IDA Development Policy Lending FY 2009 Seq No: 15 ARCHIVED on 30-Aug-2016 ISR24934 Implementing Agencies: Republic of Costa Rica, Ministry of Finance (Hacienda) Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:16-Sep-2008 Planned Mid Term Review Date:-- Original Closing Date:30-Oct-2011 Program Development Objectives Effectiveness Date:05-Mar-2009 Actual Mid-Term Review Date:-- Revised Closing Date:30-Oct-2017 Public Disclosure Authorized Program Development Objective (from Program Document) The overall development objective of the proposed operation is to enhance the government#s capacity to implement its disaster risk management program for natural disasters. The program document proposes a US$65 million Catastrophe Deferred Drawdown Option (CAT DDO) as budget financing for the Government of Costa Rica (GoCR) for three years, renewable up to four times (for a total of 15 years). PHRPDODEL Overall Ratings Name Previous Rating Current Rating Public Disclosure Authorized Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions The project continues supporting the GoCR to enhance its capacity to develop and implement its National DRM Program. The GoCR approved on March 2016 the 2016 2020 National DRM Plan and drafted a monitoring and evaluation tool (the plan covers: (i) building resilience and social inclusion, (ii) DRM participation and decentralization, (iii) education, knowledge management and innovation, (iv) sustainable financial investment, infrastructure and services, (v) regulatory mechanisms for risk reduction). Additionally, public officers are now benefiting from improved methodologies developed by the Ministry of Planning and Economic Policy (MIDEPLAN) to strengthen disasters risk considerations in the public investment decision process. CNE and MIDEPLAN are discussing to establish an agreement for financing capacity building to better incorporate DRM considerations in the design of public investment projects. The Bank will continue to provide support to: (i) the National Risk Prevention and Emergency Management Commission (CNE) in generating inputs to measure the progress of the 2016 2020 National DRM Plan, and (ii) the Ministry of Finance (MoF) in the development of the Disaster Risk Financing and Insurance (DRFI) strategy. 8/30/2016 Page 1 of 7
Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- -- -- Overall -- Low Low 8/30/2016 Page 2 of 7
Results Results Indicators Strengthened regulatory and institutional framework for DRM through an enhanced capacity of CNE to coordinate and incentivize DRM activities. (Text, Custom) Adoption of Law No. 8488 and its regulation. The GoCR continues enforcing the Law No. 8488 and its regulation. The GoCR continues enforcing the Law No. 8488 and its regulation. Enforcement of Law No. 8488 and its regulation. Date 16-Sep-2008 11-Mar-2015 18-Mar-2015 30-Oct-2014 Implementation of five selected strategic goals of the Nat. DRM Plan 2010-2015 (Text, Custom Breakdown) 0 targets implemented The GoCR approved by Decree the 2016-2030 National DRM Policy and held a National DRM Forum in October 2015, in which the Bank actively participated, to discuss the 2016 2020 National DRM Plan, which is expected to be approved by CNE in mid-march 2016. As expected, CNE Executive Board approved 2016 2020 National DRM Plan on March 2016. The Plan proposes to update Law No. 8488, including aspects related to strength the mechanism to finance the National Emergency Fund. Implementation of 5 selected goals of the Nat. DRM Plan 2010-2015 Well-funded and functional Fondo Nacional de Emergencias as part of the Disaster Risk Management Program. Well-funded and functional Fondo Nacional de Emergencias as part of the Disaster Risk Manage (Text, Custom) The Emergency Fund is well-funded and functioning. The Emergency Fund is well-funded and functioning. The Emergency Fund is well-funded and functioning. The Fondo Nacional de Emergencias remains wellfunded and functional as part of the DRM Financial Strategy through 2011. 8/30/2016 Page 3 of 7
Date 16-Sep-2008 03-Mar-2016 18-Aug-2016 30-Oct-2014 Design of a financial strategy for Disaster Risk Management (Text, Custom Breakdown) No financial strategy A financial strategy has been drafted by the Ministry of Finance (MoF), with Bank support. The strategy includes a statistical and actuarial analysis of historical disaster losses. The draft of the DRFI strategy is aligned with the current National Development Plan, the National Public Investment Plan, the National DRM Plan and the National Climate Adaptation Plan, and will be discussed with MIDEPLAN and CNE in a workshop planned for April/May 2016. As expected, the DRFI strategy drafted by MoF was discussed with CNE in April 2016 during a workshop. The draft is now being adjusted according to comments of CNE and Ministry of Finance. The strategy includes a statistical and actuarial analysis of historical disaster losses, and it is aligned with the current National Development Plan, the National Public Investment Plan, the National DRM Plan and the National Climate Adaptation Plan. Designing a financial strategy for DRM. Key line ministries annual programs include risk analysis and risk reduction initiatives. (Text, Custom) Disaster risk management has been incorporated in the 2006-2010 National Development Plan. Disaster risk management remains in the National Development Plan and is included in the line ministries annual programs. Disaster risk management remains in the National Development Plan and is included in the line ministries annual programs. Disaster risk management remains in the National Development Plan and included in the line ministries annual programs. 8/30/2016 Page 4 of 7
Date 16-Sep-2008 03-Mar-2016 18-Aug-2016 30-Oct-2014 Mainstream DRM in planning programs at the sub-national level (Text, Custom Breakdown) DRM in planning programs at national level only CNE is in the process of contracting consultancy services to design an IT tool aiming to monitor and supervise the implementation of the 2016-2030 National DRM Plan and the National DRM system (NDDRM) as a whole. It is expected that this will be operational by March 2016. A draft for developing a monitoring and evaluation tool for the implementation of the 2016-2030 National DRM Plan is already done. A date to put the M&E tool in place is not determined. Mainstreaming DRM in planning programs at sub-national level with disaster risk information. An increased proportion of projects approved by MIDEPLAN integrate DRM considerations. (Text, Custom) Incorporation of disaster risk analysis in the MIDEPLAN screening of investment projects. All the projects approved by MIDEPLAN have integrated DRM considerations. All the projects approved by MIDEPLAN have integrated DRM considerations. An increased proportion of projects approved by MIDEPLAN have properly integrated DRM considerations. Date 16-Sep-2008 03-Mar-2016 18-Aug-2016 30-Oct-2014 8/30/2016 Page 5 of 7
PHTRANCHESEC Increased capacity for incorporating disaster risk analysis in the public investment process (Text, Custom Breakdown) Capacity for incorporating disaster risk at minimum. CNE and MIDEPLAN have joined efforts to strengthen local capacities to better incorporate DRM considerations in the design of public investment projects and have trained 52 public officers from 41 public entities. CNE and MIDEPLAN are discussing to establish an agreement for financing capacity building to better incorporate DRM considerations in the design of public investment projects. A specific date to reach that agreement is yet to be established. Capacity building for incorporating disaser risk in th public investment process. Government officials trained in disaster risk analyses in public investments. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P111926 IBRD-75940 Effective USD 65.00 65.00 0.00 33.98 31.02 52% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P111926 IBRD-75940 Effective 16-Sep-2008 10-Nov-2008 05-Mar-2009 30-Oct-2011 30-Oct-2017 Tranches Tranche 15 Description Prior actions were adopted, implemented or achived before Board approval. Amount (USD) Expected Release Date Actual Release Date Status 65000000.00 31-Oct-2008 Released Tranche Condition Description Status If Not Met If Delayed The macroeconomic framework and the DRM program are considered adequate for the purpose of this operation. Met 8/30/2016 Page 6 of 7
Restructuring History There has been no restructuring to date. Related Operations There are no related projects. 8/30/2016 Page 7 of 7