Peru | World Bank

Peru - Safe and Sustainable Transport Project

Peru - Lima Transport Project : request for inspection

On October 1, 2009, the Inspection Panel received a request for inspection dated September 9, 2009, concerning the Peru, Lima Urban Transport Project. The request was submitted by residents of the district of Barranco in the city of Lima, Peru, an area affected by the project. The Requesters complain that the district of Barranco has suffered harm during the implementation of the project. The Requesters claim that they are suffering harm as a result of the 'deficiencies and omissions' of the World Bank in the project design and implementation. They allege particularly that citizen consultations were not carried out, and that the environmental assessment (EA) was neither rigorously conducted nor approved by the competent authority, the Minister of Transportation. According to the Requesters, the harm that the residents of the Barranco district and the district itself are suffering is going to be permanent. They further state that the options proposed thus far by project authorities to solve their concerns cannot truly address the problems. After receiving the Management response, the panel will, determine whether the request meets the eligibility criteria and shall make a recommendation to the Executive Directors as to whether the matter should be investigated.

Peru - Second Programmatic Environmental Development Policy Loan Project

Status of projects in execution (SOPE) - FY09 : Latin America and the Caribbean region - Peru

The Status of Projects in Execution (SOPE) report for FY09 provides information on all International Bank and Rural Development (IBRD)/International Development Association (IDA) projects that were active on June 30, 2009. The report is intended to bridge the gap in information available to the public between the project appraisal document, disclosed after the Bank approves a project, and the implementation completion report, disclosed after the project closes. In addition to the project progress description, the FY09 SOPE report contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date for all active projects.

Social impacts of climate change in Peru : a district level analysis of the effects of recent and future climate change on human development and inequality

This paper uses district level data to estimate the general relationship between climate, income and life expectancy in Peru. The analysis finds that both incomes and life expectancy show hump-shaped relationships, with optimal average annual temperatures around 18-20ºC. These estimated relationships were used to simulate the likely effects of both past (1958-2008) and future (2008-2058) climate change. At the aggregate level, future climate change in Peru is estimated to cause a small reduction in average life expectancy of about 0.2 years. This average, however, hides much larger losses in the already hot areas as well as substantial gains in currently cold areas. Similarly, the average impact on incomes is a modest reduction of 2.3 percent, but with some districts experiencing losses of up to 20 percent and others gains of up to 13 percent. Future climate change is estimated to cause an increase in poverty (all other things equal), but to have no significant effect on the distribution of incomes.

Peru - Optimization of Lima Water and Sewerage Systems Project

Peru - Additional Financing for the Lima Water Rehabilitation and Management Project

Ratings for the Additional Financing of the Lima Water Rehabilitation and Management Project for Peru were as follows: outcomes were satisfactory, the risk to development outcome was low, the Bank performance was satisfactory, and the Borrower performance was also satisfactory. Some lessons learned included: global experience demonstrates that projects that build significant and complex infrastructure such as this one take on average almost ten years to implement successfully. The Bank should take this into consideration when designing operations in the sector, as shorter execution periods could impede the achievement of desired outcomes. The presentation of the condominial system to the potential beneficiaries by the social promoters was very important for a successful implementation since this system represented a new way of doing business for Lima Water and Sewerage Public Company (SEDAPAL), so there were many doubts about its quality and costs from both the company and the beneficiaries at the beginning of each civil work package. The involvement of the beneficiaries during the design and implementation phases through the formation of Water and Sanitation Committee (WSC) as well as through workshops organized by social promoters was a key feature in the development of this system, as it helped to empower the beneficiaries and will contribute to sustain an adequate operation and maintenance of the system in the long-term. SEDAPAL formal legal recognition of the WSC once the civil works are completed and the systems are in operation will help them further fulfill their role during the operation phase and prevent the disappearance or dismantling of this important community structure.

Peru - Lima Water Rehabilitation and Management Project

Ratings for the Lima Water Rehabilitation and Management Project for Peru were as follows: outcomes were satisfactory, the risk to development outcome was low, the Bank performance was satisfactory, and the Borrower performance was also satisfactory. Some lessons learned included: global experience demonstrates that projects that build significant and complex infrastructure such as this one take on average almost ten years to implement successfully. The Bank should take this into consideration when designing operations in the sector, as shorter execution periods could impede the achievement of desired outcomes. The presentation of the condominial system to the potential beneficiaries by the social promoters was very important for a successful implementation since this system represented a new way of doing business for Lima Water and Sewerage Public Company (SEDAPAL), so there were many doubts about its quality and costs from both the company and the beneficiaries at the beginning of each civil work package. The involvement of the beneficiaries during the design and implementation phases through the formation of Water and Sanitation Committee (WSC) as well as through workshops organized by social promoters was a key feature in the development of this system, as it helped to empower the beneficiaries and will contribute to sustain an adequate operation and maintenance of the system in the long-term. SEDAPAL formal legal recognition of the WSC once the civil works are completed and the systems are in operation will help them further fulfill their role during the operation phase and prevent the disappearance or dismantling of this important community structure.

Peru - Results in Nutrition for Juntos Project

Peru - Third Programmatic Fiscal Management and Competitiveness Development Policy Loan Program

This Development Policy Loan (DPL) is the third in a programmatic series of four Fiscal Management and Competitiveness Development Policy Loans (FMCDPL). The FMCDPL series, along with parallel DPL in the areas of social policy and environment, were designed in close partnership with Government of Peru (GoP) and in line with its policy program, as outlined in the Country Partnership Strategy (CPS). The GoP stated a clear vision for: (i) building on recent economic successes to achieve higher growth and better social outcomes; (ii) constructing a better social contract between the government and citizens based on effective social development; and (iii) modernizing state institutions. This FMCDPL programmatic series has been prepared at the request of President Garcia's administration. It has been designed to support Peru's own program. Unlike the previous two loans in the series, this third operation includes policies to deal with short-term issues such the effects of the global crisis, while maintaining momentum in the implementation of reforms that address structural issues and which will have medium-term effects. The operation supports the GoP efforts in the context of a global economic slowdown. The development objective of the loan is to contribute to growth and poverty alleviation by supporting two main policy areas: (a) quality of fiscal management; and (b) competitiveness. Peru entered the global crisis in a solid position and has managed its challenges well. Good macroeconomic fundamentals and appropriate policy responses to the crisis moderate the negative impact of weaker external demand and external shocks. Aware of the downside risks to economic growth as well to poverty and employment, the GoP has implemented counter-cyclical policies to mitigate the impact of the crisis. Nonetheless, the GoP has not lost sight of the medium-term objectives of its reform agenda, and has continued to make progress in improving the effectiveness of fiscal management and supporting the country's competitiveness and integration into the global economy.

Peru - Results in Nutrition for Juntos Project

Peru - Optimization of Lima Water and Sewerage Systems Project

Peru - Third Programmatic Fiscal Management and Competitiveness Development Policy Loans Project

Nicaragua - Agricultural Technology and Rural Education Project; Peru - Agricultural Research and Extension project; Colombia - Agriculture Technology Development Project; Brazil - Agricultural Technology Development Project

Ratings for the Agricultural Technology and Rural Education Project for Nicaragua are as follows: outcome was unsatisfactory; risk to the development outcome was significant; Bank performance was unsatisfactory; and Borrower performance was also unsatisfactory. Ratings for the Agricultural Research and Extension project for Peru are as follows: outcome was moderately satisfactory; risk to the development outcome was moderate; Bank performance was moderately satisfactory; and Borrower performance was also moderately satisfactory. Ratings for the Agriculture Technology Development Project for Colombia are as follows: outcome was moderately satisfactory; risk to the development outcome was moderate; Bank performance was satisfactory; and Borrower performance was also satisfactory. Ratings for the Agricultural Technology Development Project for Brazil are as follows: outcome was satisfactory; risk to the development outcome was moderate; Bank performance was satisfactory; and Borrower performance was also satisfactory. Lessons learned from the projects included: There is a clear need for stronger monitoring and evaluation of research projects. The lack of hard evidence about the results of Competitive Grant Schemes (CGS) investments in research and extension is a considerable shortcoming of all but one project. In each of these countries, agricultural productivity has risen since the mid 1990s, with growth increasingly based on intensification rather than area expansion. All institutions need a portion of the budget that is core funded to cover costs of maintenance and upgrading of physical and human resource infrastructure. CGS usually only fund operating costs and the subprojects they finance have only 2-3 years' duration. The CGS model is more likely to strengthen the strongest agencies providing research and extension services than it is to reduce the disparities between the strong and the weak. The principle of competition between alternative service providers breaks down where the range of providers is limited and many of the potential providers lack the skills needed to prepare viable sub-project proposals.

Peru - Basic Health and Nutrition Project and Mother and Child Insurance and Decentralization of Health Services, First Phase of Health Report Program Project

Ratings for the Basic Health and Nutrition Project in Peru were as follows: outcome was moderately satisfactory; risk to development outcome was moderate; Bank performance was satisfactory and borrower performance was satisfactory. Rating for the Health Reform Program were as follows: outcome was satisfactory; risk to development outcome was moderate; Bank performance was satisfactory; and borrower performance was moderately satisfactory. During this period, Perus economy improved remarkably due to fiscal discipline and economic reforms, yet poverty and inequality persisted and public administration was weak and centralized. The country moved from a period of collapsing infrastructure that affected the health sector, to achieving important improvements both in terms of health facilities and coverage. However, the quality of social services was poor and marked by inequality in access. There were improvements in access and health outcomes among the poor and the gap between the poor and non-poor has narrowed, but in absolute terms the gap remains large.

Peru - Institutional Capacity for Sustainable Fiscal Decentralization Technical Assistance Project

This project paper concerns a first order restructuring to the Peru Institutional Capacity for Sustainable Fiscal Decentralization Project, to introduce the following changes in the project and any accompanying amendments to the legal documents: (i) an adjustment of the scope of the project following a partial cancellation request of $2.16 million received from the Borrower on April 14, 2008; (ii) a consequent revision of the outcome indicators and the monitoring and evaluation framework as well as a slight revision of the project development objective (PDO) to include the central Government within the activities of the project; (iii) a project closing date extension to September 30, 2010 to allow the completion of the activities supported by the loan; and (iv) adjustments to the institutional arrangements in the project's operational manual to take into consideration organizational changes in one of the six sub-executing units. The restructuring aims to respond to the evolving Borrower's needs and priorities in the area of fiscal decentralization. The project has suffered significant implementation delays, due in part to the change in administration shortly after the project was approved, and specifically to the process of adjusting the project activities to the priorities of the new administration.

Peru - Strengthening Biodiversity Conservation through the National Protected Areas Project

Peru - Safe and Sustainable Transport Project

Post-construction support and sustainability in community-managed rural water supply : case studies in Peru, Bolivia, and Ghana

This volume reports the main findings from a multi-country research project that was designed to develop a better understanding of how rural water supply systems are performing in developing countries. The author began the research in 2004 to investigate how the provision of support to communities after the construction of a rural water supply project affected project performance in the medium term. The author collected information from households, village water committees, focus groups of village residents, system operators, and key informants in 400 rural communities in Bolivia, Ghana, and Peru; in total, the author discussed community water supply issues with approximately 10,000 individuals in these communities. To the surprise, the author found the great majority of the village water systems were performing well. The findings on the factors influencing their sustainability will be of use to policy makers, investors, and managers in rural water supply.

Peru: Third Programmatic Fiscal Management and Competiveness Development Policy Loan

2009-11-12T22:54:57.000Z

WASHINGTON, November 12, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: US$150 million

Terms: Maturity = 21 years; Grace Period = 8 years

Project ID: P106720

Project Description: The Peru Programmatic Fiscal Management and Competiveness Development Policy Loan was designed in close collaboration with the Government of Peru to help it deal with the short-term effects of the global financial crisis, while the administration continues to move forward with its medium-term economic and social agenda. The loan thus helps underpin economic growth and poverty relief in Peru, usually the first victims of an economic setback.

Media Contact

Stevan Jackson

(202) 458-5054

Sjackson@worldbank.org

For more project information, please visit:

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/PERUEXTN/0,,menuPK:343629~pagePK:141159~piPK:141110~theSitePK:343623,00.html

Peru: US$ 150 Million to Bolster Fiscal Management and Competitiveness

2009-11-12T18:36:52.000Z

Contacts:

In Lima: Sandra Arzubiaga (511) 615-0660

sarzubiaga@worldbank.org

In Washington: Gabriela Aguilar (202) 473-4019

gaguilar@worldbank.org

WASHINGTON, November 12, 2009 – The World Bank’s Executive Board approved a US$ 150 million loan today to bolster Peru’s fiscal management and competitiveness as part of its commitment to assisting the country during the post-financial crisis scenario.

This financial tool –the third installment in a series of four– was designed in close collaboration with the Government of Peru to help it deal with the short-term effects of the global financial crisis, while the administration continues to move forward with its medium-term economic and social agenda.

The loan thus helps underpin economic growth and poverty relief in Peru, usually the first victims of an economic setback. From 2003 to 2008, 60 million people in Latin America and the Caribbean were lifted out of poverty, but the financial crisis threatens to undo those advances.

“The government has not lost sight of the medium term goals in its agenda, continuing to improve the effectiveness of its fiscal management and supporting the competitiveness and integration of the country into the global economy,” noted Felipe Jaramillo, World Bank Regional Director for Bolivia, Ecuador, Peru and Venezuela.

Jaramillo added that the Peruvian government “has also made great strides towards the implementation of its Economic Crisis Plan, has improved legislation concerning state acquisitions, and has continued its policy of expanding international trade, which greatly contribute towards the fulfillment of the aforementioned goals”.

The objectives of the World Bank program include:

Strengthen the sustainability and transparency of the Peruvian government’s fiscal policy;
Simplification of the tax system geared towards small and medium enterprises;
Consolidation of advances made by the Regional and Local Public Investment Promotion Fund (FONIPREL, in Spanish);
Improve the efficiency and quality of public expenditure;
Strengthen the government’s e-government agenda;
Expand international trade and improve business environment, emphasizing small and medium enterprises, which are crucial for job creation.

The US$ 150 million in funding approved on Thursday will help cover the government’s financing needs. Conditions for the loan include a Libor + fixed margin rate, a 21 year maturity period and an 8 year grace period.

To obtain more information on the World Bank’s work in Peru, please visit:

http://www.bancomundial.org.pe

The project Second Programmatic Environmental Development Policy Loan is now in the pipeline.

2009-10-14T04:00:00.000Z

The project Second Programmatic Environmental Development Policy Loan is now in the pipeline. To see more information, see the project information in the World Bank project database

The objective of the Second Programmatic Environmental Development Policy Loan (ENVDPL 2) Program is to support 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). Within the scope of the ENVDPL program, this second 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 Government of Peru (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 CPS pillar one 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 program will contribute to the modernization of the state institutions (CPS pillar three). The core sectors and themes to be supported by this Development Policy Loan (DPL) were selected based on the following: (a) a level of national priority identified by the Country Environmental Analysis (CEA) and agreed on by Ministry of Economy and Finance (MEF) and MINAM; (b) supplementary support from other loans and grants; and (c) the level of sectoral support and commitment.

The project PERU Optimization of Lima Water and Sewerage Systems is now in the pipeline.

2009-10-01T04:00:00.000Z

The project PERU Optimization of Lima Water and Sewerage Systems is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Justice Services Improvement has changed to Closed

2009-10-01T04:00:00.000Z

The project Justice Services Improvement has changed to Closed. To see more information, see the project information in the World Bank project database

The Justice Services Improvement Project aims to set the foundation for a long term, participatory and sustainable reform process for Peru's justice sector. Specific objectives will be: (a) to strengthen institutional capacity to lead the reform process and achieve specific improvements in justice services delivery, in particular in the Judiciary and in selected project districts; (b) to establish human resource management systems that ensure independence, transparency and integrity; and (c) to enhance access to justice services for the Peruvian society, in particular the poor (the three main components beside project management). The three main components have an interrelated national and regional focus. The Justice Services Delivery component will support central as well as regional planning, plus court administration and operation improvements. It will focus initially on 4 selected judicial districts, which are representative of the variety of the Peruvian demand for justice services, including such factors as workload and social and demographic aspects (poverty indicators o f beneficiary populations, access needs, proportion of indigenous populations). While the Justice Services Delivery component includes both national and regional level support, the Judicial Human Resource Professional Development component is national in scope, as is the Enhanced Access to Justice component. Both these two components include broad policy aspects and promote inter-institutional coordination to improve the supply of justice services.

The project Results in Nutrition for Juntos is now in the pipeline.

2009-09-29T04:00:00.000Z

The project Results in Nutrition for Juntos is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Third Programmatic Fiscal Management & Comp. DPL is now in the pipeline.

2009-09-24T04:00:00.000Z

The project Third Programmatic Fiscal Management & Comp. DPL is now in the pipeline. To see more information, see the project information in the World Bank project database

The project PE- (APL2) Health Reform Program has changed to Closed

2009-09-24T04:00:00.000Z

The project PE- (APL2) Health Reform Program has changed to Closed. To see more information, see the project information in the World Bank project database

The Second Phase Adaptable Program Loan (APL) of the Health Reform Program for Peru development objectives are to: (i) improve family care practices for women (during pregnancy, delivery, and breast-feeding), and children under the age of three; (ii) strengthen health services networks with capacity to solve obstetric, neonatal and infant emergencies and to provide comprehensive health services to women and children under the age of three; and (iii) support ministry of health governance functions of regulation, quality, efficiency and equity for improving the new health delivery model of maternal and child health care in a decentralized environment. The project will include the following four components: 1) improving health practices at the household level for women and children under the age of three in rural areas of selected regions. In particular through: a) the design, implementation and monitoring of a behavioral change communication and education program to promote healthy practices at the household level, including increased demand for health services; and b) the promotion of Seguro Integral de Salud (SIS) enrollment rights and identity rights of the targeted population; 2) increasing the capacity to provide better maternal and child health services for the poor; through: a) the improvement of the quality of services in health facilities of the nine regions; and b) the provision of support for the integrated health delivery model and the development of support systems to raise the efficiency and effectiveness of health networks; 3) strengthening government capacities to offer more equitable and efficient health system in a decentralized environment. This component will work towards the provision of: a) support for the development of a regulatory framework and implementation plan to increase quality in the provision of health services; b) support to the SIS in the development of the public insurance system; c) support to SIS and Sistema Integrado de Gestion Administrativa (SIGA) for the strengthening of their monitoring data in order to increase the accountability in the system; and d) support to the decentralization of health services; and 4) project coordination and monitoring and evaluation, trough the provision of technical assistance, financing of incremental operating costs, and external and concurrent audits.

The project Second Results and Accountability (REACT) Development Policy Loan-Deferred Drawdawn Option has changed to Closed

2009-09-24T04:00:00.000Z

The project Second Results and Accountability (REACT) Development Policy Loan-Deferred Drawdawn Option has changed to Closed. To see more information, see the project information in the World Bank project database

The Peru Results and Accountability (REACT) Development Policy Loan (DPL) is the second in a planned series of three operations to support the Government of Peru (GoP) in strengthening the accountability framework and improving results in health, nutrition and education. The Peru REACT DPL series is supporting actions in primary education, health and nutrition to define standards and set goals for the outcomes which families should expect for their children. This is coupled with the development of robust monitoring systems which provide up-to-date information on the performance of health posts and schools and individualized data for parents on the health, nutrition and learning status of their children. The operation also supports actions to reduce exclusion, rationalize programs, to improve targeting and to increase the participation of poor communities in budget processes and program monitoring. The REACT DPL series is expected to lead to improved outcomes in second grade literacy; increased access to institutional birth services; and increased coverage of individualized growth monitoring and counseling services for children under 24 months of age in areas with a high incidence of chronic malnutrition, leading to better nutrition outcomes.

The project Peru First Progrmmatic Environmental Development Policy Loan /DDO has changed to Closed

2009-09-21T04:00:00.000Z

The project Peru First Progrmmatic Environmental Development Policy Loan /DDO has changed to Closed. To see more information, see the project information in the World Bank project database

The 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-FY11 (and the 2009 CPS progress report) laying out a strategy to support the Government of Peru (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 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.

Strengthening Dispute Resolution Systems

2009-07-21T17:42:39.000Z

WEBAgenda-Bios_.pdf

The project Water Resources Management Modernization has changed to Active

2009-07-07T04:00:00.000Z

The project Water Resources Management Modernization has changed to Active. To see more information, see the project information in the World Bank project database

The development objective of the Water Resources Management Modernization Project for Peru is to improve the management of water resources through the strengthening of the Borrower's capacity for participatory, integrated, basin-scale Water Resources Management (WRM) at the central level and in selected river basins. There are two components to the project. The first component of the project will improve WRM capacity at the national level by supporting: (a) capacity building of the newly created ANA (National Water Authority - Autoridad Nacional del Agua) and formulation of a WRM financing study; (b) establishment of a national water information system; (c) formulation of a national water quality management strategy; and (d) design and launch of a program aimed at introducing a new 'water culture'. The second component of the project will improve WRM in selected river basins by supporting: (a) the creation, capacity building and early operation of river basin organizations in three pilot river basins namely, Chancay-Lambayeque, Chili, Ica-Alto Pampas (Huancavelica), or any other basin as agreed between the Borrower and the Bank; and (b) preparing the ground work in four other basins for integrated, participatory, and basin-scale WRM.

Towards Sustainable Water Management in Peru – US$10 Million World Bank Loan

2009-07-02T21:22:46.000Z

Contact:

In Lima: Sandra Arzubiaga (511) 615-0660

sarzubiaga@worldbank.org

WASHINGTON D.C., July 2, 2009 – The World Bank approved today a US$10 million loan to support the Peruvian Government in its Water Resources Management Modernization project.

The loan is aimed at improving the management of water resources in Peru through a participatory, sustainable, multisector and basin-scale approach. For such purpose, the project will work with the national water bureau (Autoridad Nacional del Agua - ANA), the agency in charge of the Peruvian National Water Resource System and its local branches.

“We are extremely satisfied with this project,”says engineer Abelardo de la Torre Villanueva, Head of the ANA. “It will help to modernize the management of our water resources by integrating private and public sectors and the civil society in order to achieve the sustainable availability of water in the quantity, timeliness and quality required for present and future generations,” adds de la Torre Villanueva.

The Water Resources Management Modernization project will support the development of participatory plans for an integrated water resource management in the Chancay-Lambayeque, Chili and Ica-Alto Pampas basins.

De la Torre further added that “an important innovation of this project is the joint participation of public agencies, user associations, and operators of water systems in the development of the basins’ management plans. This joint approach pursues to balance the supply and demands of different users and to identify responsibilities in the implementation of coordinated actions for the conservation of water and related natural resources.”

Irrigation accounts for 80 percent of water use in Peru. The Peruvian coasts and lower areas of the Pacific basins are subject to flooding due to high rainfall levels in the upper parts of the basins, while the southern areas are more drought prone.

In addition to variations in water availability, water quality is poor due to uncontrolled discharges. Additionally, climate change is causing tropical glaciers to melt which further increases water scarcity and variability and threatens the water supply.

“We congratulate the Peruvian Government for its commitment in keeping water security as a key element for the population, a sustainable development and the environment’s conservation,” says Felipe Jaramillo, World Bank Director for Bolivia, Ecuador, Peru and Venezuela. “The World Bank will continue supporting the water sector to help establish a new water culture that puts an emphasis on the value, use and management of water resources by all social and productive sectors,” adds Jaramillo.

The Water Resources Management Modernization project will contribute to:

- Improve the sustainable, participatory and multisectoral management of water resources.

- Increase the participation of water users in the management of water resources.

- Promote cross-institutional coordination at national and basin levels.

- Reduce water quality degradation and its negative impacts on human health, agriculture and exports.

- Facilitate access to comprehensive, timely and reliable information on water resources and climate

- Increase the country’s capacity to adapt to climate change impacts.

The project amounts to US$23 million, of which US$13 million are national counterpart funds and the remaining is financed with a US$ 10 million loan. The loan has a fixed margin and an 18 year repayment period, with a grace period of 17.5 years.

For more information about this project, visit:

http://web.worldbank.org/external/projects/main?query=P107666&menuPK=51526581&pagePK=218616&piPK=217470&status=P&theSitePK=40941

For more information on World Bank support for Peru, visit: www.worldbank.org/pe

-###-

Peru: Water Resources Management Modernization Project

2009-07-02T20:49:52.000Z

WASHINGTON, July 2, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Peru: Water Resources Management Modernization Project

IBRD Loan: US$10 million equivalent

Terms: Maturity = 18 years; Grace period = 17.5 years

IDA Credit: US$10 million equivalent

Terms: Maturity = 18 years; Grace period = 17.5 years

Project ID: P107666

Project Description: The Water Resources Management Modernization Project for Peru aims to improve the management of water resources by strengthening the country's capacity for participatory, integrated, basin-scale Water Resources Management (WRM) at the central level and in selected river basins. The project will be led by the country's national authorities on water, Autoridad Nacional del Agua (ANA), the main entity of Peru's National Water Resources System and its local offices.

Media Contact

Stevan Jackson

(202) 458-5054

Sjackson@worldbank.org

For more project information, please visit:

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/PERUEXTN/0,,menuPK:343629~pagePK:141159~piPK:141110~theSitePK:343623,00.html

The project Peru Irrigation Sub-Sector Supplemental Project has changed to Closed

2009-07-02T04:00:00.000Z

The project Peru Irrigation Sub-Sector Supplemental Project has changed to Closed. To see more information, see the project information in the World Bank project database

The additional financing will partially compensate for the US$30 million, reallocated from the original loan for the emergency rehabilitation of irrigation infrastructure, damaged by the 1998 El Nino disaster. It aims to complete and consolidate the objectives and the achievements as well, of the original Irrigation Sub-sector Project. The Supplemental Loan is expected to benefit some farmers and their families, and will support the key components of the original Project which are expected to have a major incremental impact. In addition, it will help formalize water rights, a major move toward the adoption of the Water Law, an advanced version of which is currently under discussion by a special Congressional Committee. The loan would be under Fixed Spread Loan (FSL) terms, with eight years of grace, and a total maturity of 14 years.

The project Irrigation Subsector Project has changed to Closed

2009-07-02T04:00:00.000Z

The project Irrigation Subsector Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Irrigation Subsector Project will raise agricultural production and productivity by enhancing the sustainability and efficiency of existing public irrigation systems. The project will also help reduce the role of the public sector in irrigation. There will be five components to the project: a) rehabilitation of the infrastructure for approximately 25 irrigation schemes, estimated to cover and area of over 200,000 hectares and reach over 50,000 families; b) institutional development and strengthening of water users' organizations and training of their management in administration, finance, and operation and maintenance; c) an incentive program for technology improvement, including a training program for private technicians, extensionists and farmers in irrigation techniques and practices, fertilization, and pesticide management as well as a matching grant program to encourage the adoption of modern irrigation technology; d) project administration and monitoring; and e) an emergency dam safety program to deal with immediate hazards which significantly affect large numbers of water users along the coast.

The project Peru - Road Safety has changed to Dropped

2009-06-03T04:00:00.000Z

The project Peru - Road Safety has changed to Dropped. To see more information, see the project information in the World Bank project database

The project Peru Safe and Sustainable Transport SWAp is now in the pipeline.

2009-05-22T04:00:00.000Z

The project Peru Safe and Sustainable Transport SWAp is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Second Results and Accountability (REACT) Development Policy Loan-Deferred Drawdawn Option has changed to Active

2009-04-11T04:00:00.000Z

The project Second Results and Accountability (REACT) Development Policy Loan-Deferred Drawdawn Option has changed to Active. To see more information, see the project information in the World Bank project database

Peru/WB: US$330 Million to Reinforce Efficiency of Social Spending

2009-04-09T23:01:25.000Z

Contacts:

In Lima: Sandra Arzubiaga (511) 615-0660

sarzubiaga@worldbank.org

In Washington: Gabriela Aguilar (202) 473-6768

gaguilar2@worldbank.org

WASHINGTON, April 9, 2009 - Ensuring funds for social spending and countercyclical measures to help Peru face the impacts of the international financial crisis is one of the main objectives of the US$330 million loan approved today by the World Bank’s Board of Executive Directors.

The Second Programmatic Social Reform Loan aims to support the Government of Peru to improve the quality of education and health services and social programs, such as the well-known Juntos (“Together”) program.

“This loan decisively supports government actions to protect the rights of the poorest citizens so they have suitable nutrition and access to quality health and education services,” said Prime Minister Yehude Simon, while adding that “support for the Juntos program and universal health insurance move forward key social reforms will improve equal access to opportunities in the country.”

The loan also aims to make education and health services more efficient in order to achieve tangible social impacts.

According to Minister of Finance Luis Carranza, his ministry “entirely supports efforts needed for social spending to result in visible outcomes among the most vulnerable populations. This reform program seeks to ensure that accountability for achieving results is shared among all levels of government, as well as by the population in its demand for quality health and education services. It will also strengthen initiatives such as Juntos or RENIEC programs that address malnutrition, lack of documentation, and other social problems.”

“This program has arrived just on time to support efforts of the Peruvian Government to restructure the Juntos program, develop a results-oriented budget, set goals and standards for achievements in student learning and under-two children, and reduce mother-infant mortality rates,” added Felipe Jaramillo, World Bank Director for Bolivia, Ecuador, Peru, and Venezuela.

The reforms will consolidate operational improvements and administration of the Juntos conditional cash transfers program in order to strengthen accountability between the government and parents to ensure that children are growing normally. It also ensures participants receive counseling services, take nutritional supplements as needed up until age two, and ensures pregnant women have access to health services.

The initiative will involve regional governments in order to establish incentives for health service providers and educational institutions to improve coverage and quality.

In Peru, one in three children under five suffers from chronic malnutrition, and barely 50 percent of rural women receive medical attention from qualified personnel or institutions during labor, whereas the national average is 76 percent. This lack of coverage puts one out of every two rural pregnant women and children at risk. Only 16 percent of second-grade children reach expected level of educational outcomes.

In this context, the loan specifically contributes to:

Establishing clear, results-oriented goals and quality standards for education and health services.
Building an accountability system between doctors, health workers, teachers, principals, health centers, and parents.
Broadening coverage and quality of results monitoring.
Improving nutrition information systems.
Strengthening reforms in Juntos piloted in the San Jerónimo District, Apurimac, in order to improve efficiency of operational and administrative processes as well as the baseline assessment. Moreover, it will expand and improve efficiency of the SIS as well as the supply and demand for births in medical institutions.
Implementing the Ministry of Education’s initiative to make second-grade reading and mathematics achievement assessment results transparent so that they can be discussed with parents to improve results.

Finally, support will be provided for the National Identity and Marital Status Registry (RENIEC in Spanish) in order to facilitate birth registrations and include identification numbers on birth certificates. Lack of documentation is a factor contributing to the exclusion of more vulnerable families from social programs.

Funding approved today totals US$330 million and consists of a credit line with a fixed-margin loan, a 21.5-year payback period and a 12.5-year grace period.

For more information about the project, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=64624214&theSitePK=2748767&menuPK=2805091&Projectid=P101177

For more information about the World Bank’s work in Peru, please visit:

http://www.worldbank.org/pe

For more information, please visit the Projects website.

Peru: Results and Accountability (REACT) Development Policy Loan

2009-04-09T22:34:38.000Z

WASHINGTON, April 9, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: $330 Millon

Terms: Maturity = 21.5 years; Grace = 12.5 years

Project Description: The Results and Accountability (REACT) Development Policy Loan for Peru (DPL) is the second in a planned series of three operations aiming to support the Government of Peru (GoP) in strengthening the accountability framework and improving results in health, nutrition and education. The Peru REACT DPL series is supporting actions in primary education, health and nutrition to define standards and set goals for the outcomes which families should expect for their children, and is expected to lead to improved outcomes in second grade literacy; increased access to institutional birth services; and increased coverage of individualized growth monitoring and counseling services for children under 24 months of age in areas with a high incidence of chronic malnutrition, leading to better nutrition outcomes.

Media Contact

Gabriela Aguilar

(202) 473-6768

gaguilar2@worldbank.org

For more information please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P101177

For more information, please visit the Projects website.

The project Additional Financing - Lima Water Rehabilitation and Management Project has changed to Closed

2009-04-01T04:00:00.000Z

The project Additional Financing - Lima Water Rehabilitation and Management Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Lima Water Rehabilitation and Management Project aims at improving water supply and sanitation networks, including water wells, at promoting water conservation, at expanding services to the urban poor in Lima's low income areas, and, at strengthening Lima Water and Sewerage Company's - SEDAPAL - institutional capacity. The expansion of services under the additional finance will incorporate the experience of the project implementation to date, and that from international experiences in the design of water and sanitation projects for low income communities. This additional finance is justified due to a funding shortfall beyond the Borrower's control - bankruptcy of the financing agency for secondary networks - where only 60 percent of the project's original expansion targets for water and sanitation services have been achieved, thus risking to substantially under-utilize a significant proportion of the Bank resources already been devoted to the expansion of primary networks, due to the absence of secondary networks to connect with households of intended beneficiaries. Strong political commitment has already been demonstrated for project implementation, and likewise, SEDAPAL demonstrated its implementation capacity by reaching (and exceeding as well) those targeted project components directly under its control.

Peru - Health Reform Adaptable Program Loan (APL)

2009-02-17T23:30:57.000Z

WASHINGTON, February 17, 2009 - The following project was approved today by the World Bank’s Board of Executive Directors:

IBRD Loan: US$15 million

TERMS: Maturity = 25 years; Grace= 10.5 years

Project Description: The project is the Second Phase of an Adaptable Program Loan (APL) which supports health reform in Peru. The project will: (i) improve family health care practices for women (during pregnancy, delivery and breast-feeding) and children under three years old in the nine poorest provinces; (ii) strengthen health service network capacities to solve obstetric, neonatal and infant emergencies, and provide comprehensive health services to women (during pregnancy, delivery and breast-feeding) and children under age three in the nine poorest provinces; and (iii) support the Ministry of Health’s governance functions of regulation, quality, efficiency and equity for improving the new health delivery model of maternal and child health care in a decentralized environment.

Media Contact

Gabriela Aguilar

(202) 473-6768

gaguilar@worldbank.org

For project documents, please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P095563

For more information, please visit the Projects website.

Peru - Environmental Development Policy Loan Program (ENVDPL)

2009-02-17T23:27:19.000Z

WASHINGTON, February 17, 2009 - The following project was approved today by the World Bank’s Board of Executive Directors:

IBRD Loan: US$330 million

TERMS: Maturity = 21.5 years; Grace= 13.5 years

Project Description: The ENVDPL will support the Government of Peru ’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 will also promote improvements in health, particularly of the poor who are exposed to the highest risks from environmental degradation.

Media Contact

Gabriela Aguilar

(202) 473-6768

gaguilar@worldbank.org

For more information on this project visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P101471

For more information, please visit the Projects website.

Peru/WB: US$15 Million to Improve Health Care for Poor Rural Populations

2009-02-17T22:57:18.000Z

Contacts:
In Lima : Sandra Arzubiaga (511) 615-0660
sarzubiaga@worldbank.org
In Washington : Patricia da Camara (202) 473-4019
pdacamara@worldbank.org

WASHINGTON, February 17, 2009- The World Bank Board of Executive Directors today approved a US$15 million loan to Peru to improve the equity of and expand access to mother-child rural health care services. The funds will be allocated to the second phase of the Parsalud program, to be implemented during a five-year period by the Ministry of Health. The total budget for the initiative amounts to US$162 million in the country’s nine priority regions.

“The project will support an implementation scheme for universal health coverage, as provided for in the law, by developing pilot areas that integrate solid experience in building the universal health care system,” said the Minister of Health Óscar Ugarte.

The main goal of Parsalud II is to continue the efforts made by Peru to reduce mother and child mortality rates, currently a severe problem.

Mother mortality rates in Peru –164 per 100,000 born alive– are almost double the Latin American average, and child mortality is still a challenge in equity. For instance, while child mortality rates among the country’s high-income population (higher quintile) amount to five per every 1,000 born alive, the figure increases to 45 per every 1,000 born alive among the poorest population (lower quintiles). Additionally, there are staggering differences among regions. While Lima has the lowest child mortality rates with 14 per every 1,000 born alive, the figure amounts to 33 in the Sierra and 38 in the jungle (statistics from 2006).

The program will also help improve the Regional Health Directorates’ health care service networks so that they can offer services adapted to the cultural needs of the indigenous population regarding obstetric and newborn emergencies. The program also expects to deliver integral health care and nutrition services for women and children, including growth checkups and pregnancy and childbirth monitoring.

The initiative will benefit people in the poorest districts of Amazonas, Huánuco, Huancavelica, Ayacucho, Apurimac, Cusco, Cajamarca, Ucayali and Puno. These areas also benefit from the action of the “Juntos” Program, which includes conditional cash transfers that promote the demand for health and nutrition services among poor households.

“The World Bank is very interested in the efforts made by Peru to ensure universal health coverage and considers this to be essential towards achieving the goal of reducing access and quality gaps in mother-child health care services in the poorest areas. This project helps the Ministry of Health respond to both challenges,” said Felipe Jaramillo, World Bank Director for Bolivia, Ecuador, Peru and Venezuela.

The second phase of Parsalud is based on the success of its first phase in 2000-2005, which benefited 649,000 pregnant women and 3,444,000 children under five years of age, exceeding the original expectations set at 503,000 pregnant women and 1,254,000 children. In spite of these achievements, excluded rural areas still present a significant challenge.

An innovative aspect of Parsalud II is a communications and educational component that promotes healthy lifestyles, aims at increasing the demand for health care services, promotes the rights of the poorest population and encourages registration in the SIS and the use of an identity card.

In addition to the normal control mechanisms for these types of loans, the Government of Peru and the World Bank introduced a technical audit system to ensure accountability of resource use.

The US$15 million approved today are based on a LIBOR rate plus a fixed 0.75 percent margin to be repaid in 25 years and a grace period of 11 years.

MoH Goals for the next 5 Years in 9 Regions:
• Reducing the child mortality rate from 42 to 32 per 1,000 born alive
• Increase the rate of births assisted in a health care facility from 44% to 78%
• Reduce the chronic malnutrition rate in children under 5 from 38% to 30%
• Reduce the prevalence of anemia in children under 3 from 69% to 60%
• Increase from 64% to 80% the percentage of breastfed children up to their 6th month
Number of Benefitted Health Care Facilities :
• 115 health care facilities
Beneficiary Population :
• 643,158 children under 3, pregnant women, women breastfeeding, women who have just given birth of rural families of the country´s nine poorest regions

For more information on this project, please visit:
http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P095563

For more information on the work of the World Bank in Peru, please visit:
http://www.worldbank.org/peru

For more information, please visit the Projects website.

Peru/WB: US$330 Million to Support the Environment

2009-02-17T21:25:11.000Z

Contacts:
In Lima: Sandra Arzubiaga (511) 615-0660
sarzubiaga@worldbank.org
In Washington: Patricia da Camara (202) 473-4019
pdacamara@worldbank.org

WASHINGTON, February 17, 2009 - The World Bank Board of Executive Directors today approved a US$330 loan million to Peru to strengthen the new Ministry of the Environment and improve environmental management in key sectors of the Peruvian economy, including mining, urban transport, fisheries and biodiversity conservation.

“The World Bank has decided to support Peru resolutely in the implementation of environmental policies permitting sustainable development,” said Felipe Jaramillo, World Bank Director for Bolivia, Ecuador, Peru and Venezuela. “In the context of the global financial crisis, it is key to identify and adopt an increasing number of policies that could make progress in both the economy and environmental protection,” he added.

Urban air pollution is one of the most severe problems in Peruvian cities. It is estimated to cause approximately 4,000 deaths per year, most of them among poor sectors and children under five years old.

According to the ‘Environmental Analysis of Peru’, published by the World Bank, the cost of environmental damage amounts to 3.9 percent of the country’s GDP: about US$2.3 billion in losses caused by air and water pollution.

The same report indicates that air pollution levels in Lima and Callao, in terms of particulate matter (PM10), exceed those of Mexico City, Sao Paulo and Santiago, all cities with a greater number of cars than Lima and less favorable geographic conditions. The diesel used in Peru is low quality, containing high levels of sulfur (5,000 parts per million), which contributes to the generation of particulate matter. Therefore, the need to introduce clean fuel, including diesel with no more than 50 parts per million of sulfur content, and optimize vehicular performance to help reduce particulate matter in urban areas.

“The program aims at improving the quality of fuels, especially diesel, the most commonly used fuel in public transportation. According to the law, by January 1, 2010, the quality of fuels must improve substantially. This means updating vehicles in Lima, where there are currently many old and highly polluting cars, to improve air quality,” said Minister of the Environment Antonio Brack.

The World Bank’s programmatic loan is the first in a series of three that will fund institutional reforms and policies in five key areas:

Improved environmental management, including supporting the strengthening of the Ministry of the Environment
Fuel and transport sector reform to improve air quality
Biodiversity conservation (Peru is among the eight countries with the greatest diversity in the world)
Sustainable environmental management in the mining sector
Sustainable development of the fisheries sector

Regarding the mining sector, Renán Poveda, environmental expert and World Bank project manager, stated that “the program will conduct an inventory of the current negative impacts of former mining and smelting operations, which are called mining environmental liabilities. This study will help identify and prioritize these liabilities to set up strategies for improvement. There is much to be done in this area.” He also added that the program: “will promote citizen involvement in the entire mining cycle, including participatory environmental monitoring. This is an important innovation that could have major implications in reducing social conflict.”

Finally, the program will support sustainable development and reduce the overcapacity of the fishing sector. It will additionally strengthen capacities to deal with potential social impacts associated with fleet reductions. Fishing resources in Peru are among the largest in the world but they are threatened by several factors, including overcapacity of the fishing fleet which had led to the overfishing of several marine species, including anchovies.

The Peru Programmatic Loan for Environmental Development Policy Loan reflects a strong commitment at the highest level to face environmental challenges and it has the benefit of coordinating the actions of the Ministries of Economy and Finance, of Energy and Mines, of Production, of Transportation and Communications, and the Ministry of Health, through DIGESA, and the recently created Ministry of the Environment, among other agencies.

The US$330 million loan includes a LIBOR rate plus a 0.75 percent fixed margin to be repaid in 21.5 years and a grace period of 13.5 years.

For more information on this project, please visit this website.
http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P101471

For more information on the World Bank’s work in Peru, please visit:
http://www.worldbank.org/peru

For more information, please visit the Projects website.

The project Second Results and Accountability (REACT) Development Policy Loan-Deferred Drawdawn Option is now in the pipeline.

2009-01-06T05:00:00.000Z

The project Second Results and Accountability (REACT) Development Policy Loan-Deferred Drawdawn Option is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Second Programmatic Fiscal Mgmt and Competitiveness Development Supplemental Financing is now in the pipeline.

2008-12-19T05:00:00.000Z

The project Second Programmatic Fiscal Mgmt and Competitiveness Development Supplemental Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

The Second Programmatic Fiscal Management and Competitiveness Development Policy Loan (DPL) Project for Peru was selected as the deferred drawn down option for this DPL as this option will allow them to better manage risk by introducing an additional instrument in the country's available risk management tools, particularly in the event of a shift in the external circumstances driving Peru's current growth or the occurrence of a natural disaster. The supplement will be provided to address an unanticipated gap in financing that could jeopardize the fiscal management and competitiveness reform program. A new freestanding Bank operation would not be a timely option. In contrast, the supplemental financing option will enable the Bank to deliver program support as a timelier respond to the financial needs of the borrower arising from tightening of credit conditions. The borrower is committed to the program and the implementing agency has demonstrated competence in carrying it out. The Government is implementing it in a satisfactory manner and has both the commitment and the capacity to continue doing so. Strengthening public finances and improving competitiveness is at the forefront of the authorities' policy agenda. The current policy stance is supportive of growth and macroeconomic stability. The policy mix response and strong fundamentals have made the Peruvian economy resilient enough to absorb the impact of the global financial crisis in a relatively orderly manner.

Consultations on the Bank Web Site

2008-12-09T15:37:38.000Z

Dear reader,

A few years ago, the World Bank’s Web site was noted as a leader among development organizations’ websites. As technology has rapidly advanced and user expectations evolved, our Web site too needs to change and adapt.

You come to our Web site because you are looking for the latest information on development. Our project information, data and research assist you in tackling your challenges or keeping up on the Bank’s activities.

Now we’re catching up. We are revamping our Web site and expanding our online capabilities to better satisfy our business needs and meet audience demands.

We’re examining all aspects of the site—content, technology, business needs and audience demands—to figure out what needs to stay, be improved or be removed.

This is a complex undertaking. We are currently gathering information to determine requirements for our future site.

Through our open online consultation, we are looking for comments from anyone who wishes to discuss their information needs and any difficulties they encounter with the site. The online consultation period ends on December 31, 2008.

All feedback we receive will inform the future design and functionality of the Web site by informing Bank management on audience needs.

Our ultimate goal is to make the Web site better support the institution’s mission of fighting global poverty and helping countries develop.

Your feedback will bring us closer to this goal.

Thank you,

Angie Gentile
Managing Editor, www.worldbank.org

The project Strengthening Biodiversity Conservation through the National Protected Areas is now in the pipeline.

2008-10-30T04:00:00.000Z

The project Strengthening Biodiversity Conservation through the National Protected Areas is now in the pipeline. To see more information, see the project information in the World Bank project database

Global Food and Fuel Crisis Will Increase Malnourished by 44 Million

2008-10-08T17:30:00.000Z

Contacts:
In Washington :Carl Hanlon 202-473-8087; chanlon@worldbank.org;
Philip Hay 202-473-1796
phay@worldbank.org

WASHINGTON, October 8, 2008 – High food and fuel prices will increase the number of malnourished people around the world in 2008 by 44 million to reach a total of 967 million, a report from the World Bank says.

While food and fuel price increases may have moderated in recent months, prices remain much higher than previous years and show few signs of declining significantly, according to the report entitled “Rising food and fuel prices: addressing the risks to future generations”. Poor families around the world are being pushed to the brink of survival, causing irreparable damage to the health of millions of children. As families cut back on spending, there are also grave risks for the educational performance of poor children.

“While people in the developed world are focused on the financial crisis, many forget that a human crisis is rapidly unfolding in developing countries. It is pushing poor people to the brink of survival,” said World Bank Group President Robert B. Zoellick. “The financial crisis will only make it more difficult for developing countries to protect their most vulnerable people from the impact of rising food and fuel costs.”

The report, due to be presented on Sunday to the Development Committee at the Annual Meetings of the World Bank and IMF, says the food and fuel crisis could have long term effects on poor people and countries. Malnourished children cannot develop into healthy adults and become productive members of society who can contribute to the growth needed to lift themselves and their country out of poverty.

The report says priority should be given to a series of targeted measures. These include:

Making existing targeted cash (or near cash) transfer programs more generous;
Getting nutrition to infants and pregnant women;
expanding so-called ”in-kind” food distribution programs including school feeding and the distribution of fortified calorically dense food;
using fee waivers, lifeline-pricing and other forms of targeted subsidies for poor users/consumers; and
introducing additional measures to prevent children from dropping out of school, such as fee waivers, subsidies for school inputs, or cash transfers.

The report also argues that allocating the necessary amount of budget to finance an expansion of safety net programs may require pruning less-priority spending in other areas. But it notes that well-designed safety net programs do not have to be prohibitively expensive to be effective. Some of the most successful programs in the world cost well under 1 percent of Gross Domestic Product. Moreover, investing in safety net programs now will give governments new tools to address not just the current crisis, but future ones as well.

In May, the World Bank launched a $1.2 billion rapid financing facility to help poor countries cope with the food crisis. Since then, around US$850 million has been committed to finance seeds, plantings, and feeding programs. In April, Zoellick called for a New Deal for Global Food Policy that included short, medium and long-term measures to provide immediate help to poor people and farmers while increasing food production.

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For more information on the Bank's work in nutrition, please visit: www.worldbank.org/nutrition

and for more on social safety nets, click here: www.worldbank.org/safetynets

The project Justice Services Improvement Project II is now in the pipeline.

2008-10-08T04:00:00.000Z

The project Justice Services Improvement Project II is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Peru - Road Safety is now in the pipeline.

2008-10-02T04:00:00.000Z

The project Peru - Road Safety is now in the pipeline. To see more information, see the project information in the World Bank project database

Peru: Second Programmatic Fiscal Management and Competitiveness Development Policy Loan

2008-08-05T19:45:25.000Z

WASHINGTON, August 5, 2008- The following project wasapproved today by the World Bank’s Board of Executive Directors:

IBRD Loan: US$370 Million

TERMS: Maturity =21.5 years; Grace= 13.5 years

Project Description: This development policy loan is intended to be the second in a series of four loans supporting the Government of Peru’s reform program to improve the functioning of Peru’s public sector institutions and business environment. The loan supports two broad areas of policy reform -efficiency and quality of fiscal management- and competitiveness

Media Contact

Patricia da Camara at (202) 473-4019

pdacamara@worldbank.org

For more information, please visit the Projects website.

Peru: World Bank Announces US$370 Million Loan to Support Fiscal Management and Competitiveness

2008-08-05T18:36:46.000Z

Contacts:

In Lima: Sandra Arzubiaga (511) 615 0660

sarzubiaga@worldbank.org

In Washington: Patricia da Camara (202) 473 4019

pdacamara@worldbank.org

WASHINGTON, August 5, 2008 — The World Bank’s Board of Executive Directors today approved a US$370 million loan to Peru. This is the second loan in a series of four that make up the Programmatic Fiscal Management and Competitiveness Development Policy Loan.

Peruvian officials chose the Deferred Drawdown Option (DDO), which makes a line of contingency financing available to the country whenever needed, as long as general program implementation continues. DDO is a new financial instrument made available by the World Bank for middle-income countries. In Latin America and the Caribbean, it has already been used by Colombia and Mexico.

The Programmatic Fiscal Management and Competitiveness Development Policy Loan is a core part of the World Bank’s partnership strategy with Peru. The program is designed to support the country’s efforts to increase economic growth and make headway in the fight against poverty, and backs the government reform plan that seeks to strengthen fiscal management and ensure a favorable environment for the development of Peru’s private sector. It focuses on two main areas: efficiency and quality of public spending, as well as improved competitiveness.

“The trajectory of sound economic management has translated into a virtuous cycle of growth and poverty reduction in Peru. The reforms supported by this loan aim to improve the effectiveness and efficiency of public spending, which is very important if this virtuous cycle is to continue. More efficient spending generates significant budgetary savings that can be allocated to poverty relief programs that promote the development of human capital and act as social safety nets for the most vulnerable groups,” said Rossana Polastri, World Bank Manager in charge of the operation.

Over the short term, the program will strengthen the Peruvian government’s financial position, while backing the government’s public sector and competitiveness reform program. Over the medium to long term, the reforms, which are supported by the series of programmatic loans, will result in a sounder general financial framework, improved efficiency and quality of public sector spending and more sustainable economic growth.

Based on the results of the first phase, this second loan supports reforms that allow the consolidation of sustained growth through healthy, results-oriented financial accounts, with a State at the service of citizens that encourages the development of productive activities.

Among the reforms supported by this program are the streamlining of requirements and procedures for fulfilling tax obligations, budgetary allocation based on tangible result-oriented goals; facilitating greater capital stocks through public-private partnerships; trade liberalization; and advances in the electronic government system.

The US$370 million, fixed-spread loan is repayable in 21.5 years, and includes a 13.5-year grace period.

###

For further information about the World Bank’s work in Peru, please visit:

http://www.bancomundial.org.pe

For more information, please visit the Projects website.

Climate Change: WB Announces Adaptation Program for Glacier Retreat In The Andes

2008-05-29T23:45:00.000Z

Contacts:

In Lima– Sandra Arzubiaga (511) 615-0660
sarzubiaga@worldbank.org

In La Paz: Rafael Archondo (591-2) 215-3347

rarchondo@worldbank.org

In Washington- Stevan Jackson +1 202 458-5054

sjackson@worldbank.org

Lima, May 29, 2008 –The World Bank announced today a new program to address the impact of tropical glacier retreat in Bolivia, Peru, and Ecuador. The program, supported by the Global Environmental Facility (GEF), will grant US$7.49 million to implement a set of adaptation actions to face the threats posed by climate change in the Andes. The project totals US$ 33 million and draws from several donors.

The new Adaptation to the Impact of Rapid Glacier Retreat in the Tropical Andes Project (Andes Region Project) in Bolivia, Peru, and Ecuador targets mountainous and glacial areas.

“Climate change will heavily impact Andean countries’ economies, particularly the poor. Adapting to climate change is crucial given the severe and irreversible effects it will have on the region,” stated Carlos Felipe Jaramillo, World Bank director for Bolivia, Ecuador, Peru, and Venezuela, during the project launch in Lima.

The initiative seeks to strengthen the resilience of local ecosystems and economies affected by rapid tropical glacier retreat by implementing pilot adaptation activities that illustrate the costs and benefits of adaptation alternatives. The project’s specific objectives are:

a) The effective integration of the implications of glacier retreat into regional and local development planning, particularly in glacier basins

b) The inclusion of glacier retreat impacts in local development projects and programs

c) The collection of data on glacier dynamics to improve policy decisions.

“This project will help Andean countries monitor the changes in tropical glaciers and the evolution of mountain wetlands, as well as implement pilot adaptation measures, as a key input for decision-making on how to address the impacts of glacier retreat,” commented Walter Vergara, head of Latin America’s adaptation project portfolio.

This project is part of the World Bank’s strategy to help the regions’ countries face the impacts of climate change. In April, the World Bank signed an agreement with the Japan Aerospace Exploration Agency (JAXA) giving it access to cutting-edge expertise and information from the Advanced Land Observation Satellite (ALOS). These images and data will support World Bank-sponsored adaptation projects in Colombia, Mexico, the West Indies, and the Andes region of Peru, Bolivia, and Ecuador. The ALOS images of tropical glaciers in the Andes will be used to assess these glaciers’ dynamics under the project approved today.

To date, World Bank investments in climate change adaptation initiatives in Latin America reach US$90 million.

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For more information on the Adaptation to the Impact of Rapid Glacier Retreat in the Tropical Andes Project, visit:

http://web.worldbank.org/external/projects/main?Projectid=P098248&theSitePK=40941&pagePK=64283627&menuPK=228424&piPK=73230

For more information on the World Bank’s work in climate change in Latin America, visit: http://www.bancomundial.org/alc

Bolivia, Ecuador, and Peru: Adaptation to the Impact of Rapid Glacier Retreat in the Tropical Andes Project

2008-05-27T21:17:29.000Z

WASHINGTON, May 27, 2008- The following project was approved today by the World Bank’s Board of Executive Directors:

GEF Trust Fund: US$7.49 million

PROJECT DESCRIPTION: This project aims to contribute to strengthening the resilience of local ecosystems and economies to the impacts of glacier retreat in the Tropical Andes, through the implementation of specific pilot adaptation activities that illustrate the costs and benefits of adaptation. The specific objectives of the project, in support of this broad objective, are: a) the

effective integration of the implications of glacier retreat into the regional and local planning in

glacierized basins; b) the inclusion of glacier retreat impacts in local, sector development

projects; and c) generation of data on glacier dynamics.

For more information please callGabriela Aguilar at 202-473-6768 or e-mail gaguilar2@worldbank.org

For more information, please visit the Projects website.

New report on economic growth offers lessons on achieving sustained, high economic growth

2008-05-21T17:11:32.000Z

Contacts:

In Washington:

Maya Brahmam at +1-202-473-6231 or email at mbrahmam@worldbank.org

WASHINGTON, May 20, 2008 – The World Bank Group welcomes a new report by the independent Commission on Growth and Development, a global panel of eminent experts, which reveals important lessons from countries that have achieved high, long-term economic growth. The experts say the lessons learned could help policy makers in developing countries as they seek to set their countries on a steady growth path.

The Growth Report: Strategies for Sustained Growth and Inclusive Development says integration into the world economy, maintaining high rates of savings and investment, and committed, capable governments are among the key features of countries that have sustained growth rates above 7 percent for 25 uninterrupted years since World War II.

"This report underscores to the development community that one size doesn’t fit all." said World Bank Group President Robert B. Zoellick. I am especially pleased that it draws on input from first class practitioners and leaders who have hands-on pragmatic and practical experience of making inclusive development a success. This will help enrich the thinking and practice of the World Bank Group as well as others in the development field.” “

High, long-lasting growth is not easily achieved, but the report by some of the world’s top policy-makers and thinkers, believes it can be reproduced in developing countries, giving them a chance to reduce poverty and improve opportunity and quality of life for their citizens.

“We are acutely aware that there are no silver bullets to create long-running, inclusive growth, and that no single paradigm exists,” says Commission Vice Chair Danny Leipziger, who is also Vice President for Poverty Reduction and Economic Management at the World Bank. “While seeking to identify those key elements that can lead to long running and inclusive growth, the report is clear that policy makers will need to customize and experiment with polices rather than follow any rigid set of guidelines.”

Commission Chairman Michael Spence said: " What makes the report so unique is that it was prepared by policymakers, many from developing countries, who have been in the trenches themselves and have learned what works and why. It is these commissioners who are now providing their insights to the next generation of policymakers on ways to improve growth prospects and the quality of life in the poor parts of the globe."

Spence is one of two Nobel Laureates on the 21-member commission comprising leaders from business, government and academia. The Commissioners come from 18 countries that include a broad mix of developing, emerging and developed economies, as well as small island states and populous, large countries.

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To download full report click here:

http://www.growthcommission.org/

World Bank Broadens Transport Agenda

2008-05-21T17:00:00.000Z

Contacts
In Washington:
Roger Morier (202) 473 5675, rmorier@worldbank.org
Anna Piasecka (202) 458 7027, apiasecka@worldbank.org

WASHINGTON, D.C., May 21, 2008 – The World Bank Group today launched a new transport business strategy for 2008-2012 that will help partner countries establish the governance, strategies, policies and services to deliver transport for development in a way that is economically, financially, environmentally and socially sustainable.

Called Safe, Clean, and Affordable… Transport for Development, the business strategy strengthens the alignment of the transport sector approach with the Millennium Development Goals adopted by the United Nations in 2000. At the same time, it widens the directions and deepens the routes that will be taken to meet the evolving development agenda. It gives more attention to emerging trends, such as trade globalization, urbanization of populations; rising concerns about climate change, the increase in traffic congestion; and the recognition of access as a key to both economic opportunity and good governance.

“In striving to achieve its development objectives—and foremost to eradicate poverty—the World Bank Group is mobilizing the transport sector to the fullest possible extent,” said Katherine Sierra, World Bank Vice President for Sustainable Development. ”To that end, the transport business strategy aligns Bank Group instruments along a few key strategic directions that will pave the way to truly sustainable development, one where transport plays a crucial role.”

“In a world with rising levels of greenhouse gases, poor road safety, and the too-frequent spread of communicable diseases along international routes, transport must be looked at anew. A coherent way forward requires innovative thinking and cooperation among sectors to optimize the role of transport without jeopardizing personal and commercial mobility.”

The Bank Group consulted widely in preparing its new business strategy, seeking contributions from over 75 transport development partners, governments, professional institutions, civil society organizations, multilateral and bilateral donors, and putting an early draft on its external website for four months to elicit public comments.

Safe Transport
Acknowledging the importance of transport for achieving public health outcomes within the Millennium Development Goals, the strategy stresses the need to mitigate the spread of HIV/AIDS, and to address safety in all transport modes, especially road transport. It also addresses the safety issue in air transport which, although globally much safer, still shows a safety record significantly affecting growth and investment prospects in some regions, in particular Sub-Saharan Africa. Transport and supply-chain security has also become a major issue in ensuring fair access of developing country exports to developed markets, and needs to be addressed as a new global public good.

“Road crashes kill an estimated 1.2 million people a year and injure 50 million more, disproportionately affecting the poor,” said Anthony Bliss, Lead Road Safety Specialist, Program Coordinator for the World Bank’s Global Road Safety Facility. “We are placing special emphasis on road safety, extending our support to include not only road safety components embedded in road infrastructure projects, but also larger stand-alone projects to formulate national policies and strategies that would improve road safety across the board. We will also pursue cross-sectoral approaches, such as including pre-hospital components in road programs and road safety components in health programs.”

Clean Transport
Urban air pollution, 90 percent of it generated by motor vehicles, kills an estimated 800,000 people each year. Transport now produces approximately 15 percent of global greenhouse gas emissions. Reflecting the contribution of transport to the wider environmental aims of the Millennium Development Goals, the strategy encompasses the transport-energy-environment nexus, from the energy consumption to the emissions and climate change impact perspectives. Going forward, the World Bank Group will be working to help restrain transport energy consumption. It will be assessing and controlling transport projects emissions, favoring shifts to low carbon modes.

“We are setting guidelines for environmentally effective transport planning and decision making,” said Jamal Saghir, Director, Energy, Transport and Water Department and Chair of the Transport Sector Board. “We are seeking ways to mitigate the effects of transport on the climate—and the effects of climate change on transport asset. We intend to build climate change issues into transport project appraisals where appropriate.”

Affordable Transport
An estimated 1 billion people in low-income countries lack access to an all-weather road. Affordable transport can enhance mobility and inclusion. It can promote social, economic, and political integration, by keeping a country together despite geographic disparities, by overcoming potential disputes over access to resources, and by defusing the seeds of conflict that sometimes arise from feelings of isolation.

Marc Juhel, Sector Manager for Transport stressed the fact that affordability concerns not only the rural and urban poor, but also the whole freight economy, aiming at improving competitiveness to foster stronger economic growth:

“The strategy stresses the need for better knowledge and control of transport costs, for both passengers and freight, on domestic and regional, urban and rural settings. The implementation of an effective urban transport strategy, reaching out to the growing urban poor population, is a key element of this approach. On the freight side, the cooperative work on trade and transport facilitation—in particular on customs and transit issues—will be strengthened.”

World Bank contribution to transport over previous decade
Since the Bank’s 1996 transport strategy, Sustainable Transport, was endorsed by the World Bank’s Board of Directors, the Bank Group has committed around US$42 billion for more than 530 dedicated transport operations and transport components in over 500 non-transport specific projects in more than 100 client countries. Lending in fiscal year 2007 (July 1, 2006 – June 30, 2007) reached over US$5 billion, amounting to 20 percent of World Bank Group new annual commitments.

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View the transport business strategy—Safe, Clean, and Affordable… Transport for Development at: http://www.worldbank.org/transport

World Bank Group President Appoints Vice President of Institutional Integrity

2008-05-05T18:00:00.000Z

Contacts:
In Washington: Carl Hanlon (202) 473 8087
chanlon@worldbank.org

WASHINGTON, D.C. May 5, 2008 – World Bank Group President Robert B. Zoellick has named South African Leonard McCarthy to head the Bank’s Department of Institutional Integrity (INT). McCarthy has earned international recognition for investigations and prosecutions of individuals engaged in corruption as head of South Africa’s Directorate of Special Operations.

“Leonard McCarthy is recognized worldwide for his integrity, independence, and effectiveness in fighting corruption and strengthening good governance,” says Zoellick. “This is the first time that the Department of Institutional Integrity will be headed at the level of Vice President, and McCarthy brings to the post stature, skill, and tested experience. This post is critical for our work, reputation, and fiduciary duty. I am confident that he will bring effective leadership to our highest obligation to protect the Bank’s assets and hold people, businesses, and governments responsible if they steal from the poor.”

McCarthy’s work with South Africa's National Prosecuting Authority has included investigating and prosecuting high profile cases of financial crime, organized crime, and high-level corruption. He has worked closely with African governments and law enforcement officials across the globe to expose and prosecute transnational financial crime. McCarthy was formerly a Director of Public Prosecutions appointed by President Nelson Mandela.

An experienced trial lawyer, he has held numerous positions in government, including Investigating Director in the Office for Serious Economic Offenses, Deputy Attorney General in Cape Province and Senior Public Prosecutor. He holds a Bachelor of Laws Degree from the University of South Africa in Cape Town.

Following talks with the South African government, President Mbeki has agreed to release McCarthy from service, to take up the position at the World Bank on June 30, 2008.

“I am honored to receive this appointment and to be joining the World Bank, I believe strongly in its vision, said McCarthy. “President Zoellick has made clear to me the strong emphasis he places on INT’s role, its need for strong, highly skilled people who will both pursue investigations and integrate anti-corruption work into Bank projects across the world. I am committed to delivering results and building on INT’s work to strengthen financial due diligence and ensure that precious development resources benefit people who need them most.”

McCarthy was selected from a list of candidates assessed by an internal search committee with the addition of former Federal Reserve Chairman Paul Volcker, who led a review of INT last year. In his report Volcker called for greater attention to protect against corruption in designing and implementing Bank programs.

Mr. Volcker has welcomed the fact that: “the Bank is now implementing the recommendations of the Panel he chaired, importantly including elevating the head of INT to the level of vice president.”

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