Implementation Status & Results Peru Peru First Progrmmatic Environmental Development Policy Loan /DDO (P101471)

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1 Public Disclosure Authorized Public Disclosure Authorized losure Authorized Public Disclosure Authorized The World Bank Project Name: Implementation Status & Results Peru Peru First Progrmmatic Environmental Development Policy Loan /DDO (P101471) Peru First Progrmmatic Environmental Development Policy Program Stage: Implementation Seq.No: 5 Status: ARCHIVED Last Modified Date: 29-Jul-2011 Loan /DDO (P101471) Country: Peru Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Ministry of Energy and Mines, Ministry of Environment, Ministry of Production Key Dates Board Approval Date 17-Feb-2009 Original Closing Date 17-Feb-2012 Planned Mid Term Review Date Last Archived ISR Date 14-Feb-2011 Effectiveness Date 25-Sep-2009 Revised Closing Date 08-Sep-2012 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) The proposed Environmental Development Policy Loan Program (ENVDPL) aims at supporting the government's efforts to strengthen environmental governance and institutions in Peru, and mainstream environmental sustainability in the development agenda of key sectors (mining, fisheries, and urban transport and energy). The ENVDPL promotes improvements in health particularly of the poor who are exposed to the highest risks from environmental degradation. The ENVDPL is consistent with one of the key pillars of the 2006 Country Partnership Strategy (CPS) for Peru for FY07-FYI1 (and the 2009 CPS progress report) laying out a strategy to support the GoP to achieve its goals of sustained economic growth. The CPS recognizes the need to raise the profile of environmental issues in Peru by enhancing environmental public investments and strengthening the institutional framework. In support of the CPS# pillar (i) on economic growth, the ENVDPL program will contribute to making growth environmentally sustainable by supporting the environmental legal and institutional framework, biodiversity conservation, enhancing control over air and water pollution, improving the sustainability of the mining sector and the sustainable management of fisheries resources. In addition, by supporting the policy instruments of the newly created Ministry of Environment (MINAM), the ENVDPL would contribute to the modernization of the state institutions (CPS pillar iii). Has the Program Development Objective been changed since Board Approval of the Program? Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status Overview The Peru First Programmatic Environmental Development Policy Loan/Deferred Draw-down Option was approved by the Board on February 17, As of July, 2011, only USD $20 million had been disbursed. The Second Programmatic Environmental Development Policy Loan was approved by the Board on December 8, 2009; and the Third Programmatic Environmental DPL (last of the series) was approved by the Board on August 5, The Implementation Completion and Results Report (ICR) for the Program is under preparation. Page 1 of 5

2 Results Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of EIAs of large infrastructure/ investment projects with potentially significant impacts reviewed by MINAM. Text Value INRENA reviewed 77 EIAs for projects (large and small) which could have an impact on natural resources MINAM has prepared an internal draft with technical and legar criteria for the regulation to review EIAs approved by the corresponding authorities. MINAM to review EIAs for at least 10 large infrastructure/ investment projects with potentially significant impacts per year. Increased NPA funding from various sources (including private sector) by at least US$ 2 million per year. Air quality data for the Lima-Callao ropolitan Region is widely published and disseminated (in real time). Text Value Resource allocation from various sources to the National System of Natural Protected Areas (SINANPE) of US$14.2 million. Budget increase annually by $2 million reaching to date $19.5 million US$20.2 million Date 30-Sep May Sep-2012 Text Value Data were not disseminated in real time A workshop among SENAMHI, DIGESA, PRODUCE, OEFA was carried out to reach consensus for the air quality monitoring protocols to be national and not sectorial. Date 07-Jan Jun Sep-2012 Data found at senamhi.gob.pe Air quality contingency plans are developed. Text Value Pollution contingency plans do not exist in Peru, except in La Oroya Pollution contingency plans for Arequipa, Ilo and La Oroya have been developed; and Clean Air Action Plans have been established for Iquitos, Chimbote, Trujillo and Ilo. Date 28-Sep Jul Sep-2012 Air quality contingency plans area developed and implemented in the 5 most polluted cities: Lima, Arequipa, Chimbote, Ilo and La Oroya. Page 2 of 5

3 Indicator Name Core Unit of Measure Baseline Current End Target Priority MELs are identified following the priority setting update of MELs inventory and resources for remediating priority public/private MELs confirmed. Number of environmental participatory monitoring projects in the mining sector. Text Value No MELs have been identified using technical criteria, and resources have not been confirmed for public/private MEL remediation. 119 priority MELs in 6 former mining units in Cajamarca Date 30-Sep Aug Sep-2012 Text Value 35 community-based monitoring pilots are underway. 43 community participatory monitoring commitees in place Date 30-Sep Jul Sep-2012 At least 10 priority MELs are identified following the priority setting update of MELs inventory and resources for remediating priority public/ private MELS have confirmed resources. Environmental participatory monitoring undertaken in at least 60 sites. All gas stations supplying diesel in Lima supply 50ppm diesel. Text Value Zero All stations in Lima-Callao now supply clean diesel with less than 50ppm of sulfur content Date 30-Sep Aug Sep-2012 At least 30 percent of gas stations in main cities (approx. 750) supplying clean diesel (with less than 50 ppm of sulfur content) by Number of vehicles converted to natural gas and number of service stations supplying natural gas in Lima. Vehicle inspection and maintenance system operating in Lima. Text Value 35,000 vehicles converted to NG in Lima. 107,768 vehicles converted to natural gas. 146 service stations supplying natural gas. Text Value 6 inspection lanes operational in Lima for heavy-duty vehicles. 556,626 vehicles inspected in Lima-Callao; 47,688 in Arequipa; and 29,263 in La Libertad Date 30-Sep Jul Sep-2008 At least 80,000 vehicles converted to natural gas (NG) and 90 service stations are installed and operating in Lima. Vehicle inspection and maintenance system operating in Lima (with at least 600,000 vehicles inspected), and in each of the 3 largest cities (with at least 80,000 vehicles inspected). Page 3 of 5

4 Percentage of anchoveta fleet under the quota system. Number of workers take advantage of economic incentives for leaving the fisheries sector. Data on Financial Performance (as of 15-Oct-2009) Text Value Zero percent regulated by quotas. 100 percent 100 percent of anchoveta fleet under the quota system. Text Value Zero To July 2011, 2,042 fishermen have left the sector. At least 3000 workers benefit from economic incentives for leaving the sector. Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P IBRD Effective 17-Feb Sep Sep Sep-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD Tranches Tranche 1 Description One tranche in the amount of 20 million, and $310 million as DDO Amount (USD) Expected Release Date Actual Release Date Status 20,000, May Oct-2009 Pending Released Tranche Condition Description Status If Not If Delayed Approval of the Legislative Decree No.1013 creating the Ministry of Environment (MINAM), establishing its organization and key functions. Issuance of regulation establishing functions of the National Service for Natural Protected Areas (SERNANP). Issuance of the Supreme Decree No MINAM which sets the Environmental Quality Standards (ECAs) and Maximum Permissible Levels (LMPs) for air and water emissions. Not Not Not Page 4 of 5

5 Approval of Legislative Decrees No and No which modify the MEL#s Law (No ), and placed the onus for remediation on private holder (even after mining title/ concession has expired) and forbids granting new mining concessions to companies that have not remediated their MELs. Issuance of Supreme Decree No EM which approved a Regulation defining public and community participation during the concession, exploration, exploitation, execution and closing of mining process. Enactment of Law No establishing reduction of sulfur in diesel to 50ppm by Issuance of Supreme Decree No MTC, which approved a Regulation promoting vehicle conversion from gasoline to natural gas and establishment of stations supplying natural gas. Approval of Legislative Decree No regulating anchoveta fishing quotas by vessel, and the social protection measures for displaced workers. Not Not Not Not Not Key Decisions Regarding Implementation None. Restructuring History There has been no restructuring to date. Related Operations P Peru First Progrmmatic Environmental Development Policy Loan /DDO, P Second Programmatic Environmental Development Policy Loan, P Peru Third Programmatic Environmental Development Policy Loan Page 5 of 5