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: 14 ARCHIVED on 14-Mar-2016 ISR22884 Implementing Agencies: 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 Since the last ISR (September 2015), the Government of Costa Rica (GoCR) has continued making progress on its DRM Program and has received support from the Bank in the implementation of target indicators. In particular, the Bank has provided support to: (i) the National Risk Prevention and Emergency Management Commission (CNE) in the development of the 2016-2020 National DRM Plan, and (ii) the Ministry of Finance (MoF) in the development of a Disaster Risk Financing and Insurance (DRFI) strategy. The GoCR has also made progress in meeting the policy matrix objectives and has achieved two key milestones. (i) On October 2015 during a public National DRM Forum, the 2016-2030 National DRM Policy was jointly approved by the President of CNE, the Ministers of the Ministry of Environment and Energy, and the Ministry of Housing; this Policy was later adopted by Presidential Decree on November 30, 2015. The National DRM Forum, in which the Bank actively participated, not only allowed for the public debate and approval of the Policy but also enabled the GoCR to discuss the 2016 2020 National DRM Plan based on the Policy, which is expected to be approved by CNE in mid-march 2016. A monitoring and evaluation tool for the Plan s implementation is also under preparation and it is expected that this tool will be operational in May 2016. (ii) Significant progress has been made to strengthen the capacity of the Government to incorporate DRM considerations in the design of public investment projects. Public officials are now using improved methodologies developed by the Ministry of Planning and Economic Policy (MIDEPLAN) to better integrate disasters risk considerations in the public investment decision processes and at least 52 public officials from 41 public entities were trained 3/14/2016 Page 1 of 7
in the application of these methodologies by the end of 2015. The Bank has also supported the MoF in the development of a Disaster Risk Financing and Insurance (DRFI) strategy including the potential enrollment in CCRIF, and has provided technical assistance to carry out statistical and actuarial analyses of historical losses attributed to disasters, which will help the GoCR understand the State s financial vulnerability to disasters. 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. The draft DRFI strategy is expected to be formally discussed with MIDEPLAN and CNE in a Bank facilitated workshop planned for April/May 2016. The Bank is also supporting the GoCR in its incursion to the use of geospatial data to inform DRM decisions and a workshop on GeoNode facilitated by the Bank is planned for April 2016. The next supervision is scheduled to take place in April 2016 to assess the GoCR s progress on its DRM Program and on the implementation of ongoing activities to achieve project target indicators. 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 Results Results Indicators 3/14/2016 Page 2 of 7
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 11-Mar-2015 30-Oct-2014 Implementation of five selected strategic goals of the Nat. DRM Plan 2010-2015 (Text, Custom Breakdown) As five selected goals were already implemented, the approval of the National DRM plan was established as an additional goal. 0 targets implemented The GoCR has drafted the National DRM Plan for 2016-2030 that contains (i) the national DRM policy, which was endorsed by CNE s board of Directors on September 2, 2015 and is expected to be approved by executive decree on September 14, 2015 and (ii) a 5- year implementation plans deriving from the policy. The 5-year implementation plan (2016-2020) is expected to be validated during the National DRM Forum in October 2015, then endorsed by CNE s board of directors, before being approved by executive decree.. 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. Implementation of 5 selected goals of the Nat. DRM Plan 2010-2015 3/14/2016 Page 3 of 7
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. Date 16-Sep-2008 11-Mar-2015 03-Mar-2016 30-Oct-2014 Design of a financial strategy for Disaster Risk Management (Text, Custom Breakdown) No financial strategy A disaster risk financial strategy has been drafted by the Ministry of Finance (MoF). MoF is yet to discuss this strategy other stakeholders regarding the content of this draft. The Bank will continue providing support to the GoCR to carry out its own public assets probable losses analysis, which will determine the State s financial capacity to respond to disasters and ultimately establish the bases to move forward the DRFI agenda. 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. Designing a financial strategy for DRM. 3/14/2016 Page 4 of 7
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. Date 16-Sep-2008 11-Mar-2015 03-Mar-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 National DRM Plan 2016-2030 and the National DRM system as a whole. It is expected that this tool will be operational by March 2016. 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. 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 11-Mar-2015 03-Mar-2016 30-Oct-2014 3/14/2016 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 will finance training workshops on the use of the disaster risk assessment and inclusion of DRM in public investment methodological guidelines developed by MIDEPLAN at the end of October and November 2015. It is expected that 70 government staff, who are involved in public investment projects will participate in the trainings 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. 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 14 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 3/14/2016 Page 6 of 7
The macroeconomic framework and the DRM program are considered adequate for the purpose of this operation. Met Restructuring History There has been no restructuring to date. Related Operations There are no related projects. 3/14/2016 Page 7 of 7