Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras DRM Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat DDO) (P172567) Honduras DRM Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat DDO) (P172567) LATIN AMERICA AND CARIBBEAN | Honduras | Urban, Resilience and Land Global Practice | IBRD/IDA | Development Policy Lending | FY 2020 | Seq No: 4 | ARCHIVED on 16-Jun-2023 | ISR56756 | Implementing Agencies: Ministry of Finance (Secretaria de Finanzas - SEFIN), Republic of Honduras Key Dates Key Project Dates Bank Approval Date: 10-Apr-2020 Effectiveness Date: 29-Apr-2020 Original Closing Date: 30-Jun-2023 Revised Closing Date: 30-Jun-2023 pdoTable Project Development Objectives Program Development Objective (from Program Document) The PDO is to strengthen Honduras's institutional and financial framework to manage the risk of adverse natural events including disease outbreaks Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project is set to close on June 30, 2023. The project has made notable advancements, surpassing or meeting expectations for five out of seven indicators. However, the ratings for Progress towards the achievement of the PDO and Overall Implementation Progress (IP) have been downgraded to Moderately Satisfactory due to the partial fulfillment of the water sector-related indicators. The decision by the Government not to create a national water authority, as outlined in the General Water Law, may result in continued unsuitable water management practices, including environmental degradation of river basins and lack of control over the occupation of drought and flood-prone areas, increasing water-related disaster risks. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial 6/16/2023 Page 1 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras DRM Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat DDO) (P172567) Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- Substantial Substantial Overall Substantial Substantial Substantial Results Results Indicators Improving public financial management and fiscal resilience against disaster risk IN01308678 ►New financial instruments implemented to manage disaster risk and emergencies in accordance with the Disaster Risk Financing Strategy (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 7.00 1.00 Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 SEFIN adopted the Disaster Risk Financing Management Strategy (DRMFS) and Implementation Plan in April 2022. The Strategy establishes objectives to assess fiscal exposure to disasters, evaluate and adopt financing instruments to reduce this exposure and improve efficiency in post-disaster expenditures. SEFIN reported it had developed the following seven financial instruments under the DRMFS: i. Budget Reallocations; ii. The activation of the CERC to support the response to COVID -19 and Tropical Cyclones Comments: Eta and Iota, as well as reallocation of other external funds to support response efforts; iii. External credits for the recovery to Eta and Iota; iv. Contingent line of Credit, with the CAT DDO (WB); v. Non reimbursable cooperation; vi. Placement of Bonds in the National Market; and a vii.Contingent line of Credit from Inter-American Development Bank. Enhancing the institutional framework for improved disaster risk management IN01308679 ►New or updated Sistema Nacional de Gestión de Riesgos (SINAGER) DRM instruments formulated and approved by the new Ministry of Disaster Risk Management and National Contingencies (COPECO) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 3.00 Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 In May 2022, as part of the continuous efforts of the Honduran Disaster Risk Management Agency (Comisión Permanente de Contingencias - COPECO) to strengthen the national legal framework for DRM, Comments: the new SINAGER (Sistema Nacional de Gestión de Riesgos) Law was submitted to Congress. The law has undergone multiple revision processes, incorporating inputs from various sectors through 6/16/2023 Page 2 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras DRM Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat DDO) (P172567) consultations. Furthermore, COPECO has designed and approved the Index for Risk Management (INFORM) at the municipal level. This internationally recognized tool assesses the risk of humanitarian crises and disasters that may exceed the response capacity at both the national and municipal levels. INFORM has become an essential information resource employed by the Government to target its response to emergencies like those caused by Eta/Iota. Finally, COPECO developed a Geographic Information System (GIS) platform called the Geoportal de Riesgos de COPECO. This platform, implemented by the Directorate of Prevention Management and the Directorate of Communication Information Technologies, serves as a centralized repository for all digital cartographic information available in the country. It can be accessed here: http://geonode.copeco.gob.hn/ IN01308682 ►Municipalities that have formulated or updated and formally approved their local emergency plans in accordance with the new operational guidelines (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 249.00 249.00 40.00 Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 This year COPECO has undertaken the review of 265 Municipal Emergency Plans (Planes de Emergencia Municipal - PEM), with an approval of 248 plans out of the total 298 municipalities. In 2021, COPECO reported approving 296 PEMs. This indicator was exceeded as the target were 119 PEMs or 40% of muncipalities. It is important to note that the PEMs are subject to annual review and approval by Comments: COPECO, which accounts for the variation in the numbers reported between the current year (2022-2023) and the previous year (2021-2022). This important achievement can be attributed to the Budget Law, which mandates municipalities to develop PEMs as a prerequisite for accessing government funds. Strengthening health emergency preparedness and response capacities IN01308680 ►Health regions with a Regional Pandemic, Epidemic and Health Emergency Response Plan adopted by the Ministry of Health (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95.00 100.00 100.00 Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 In 2023, SESAL developed and adopted 20 Regional Pandemic, Epidemic, and Health Emergency Comments: Response Plans. IN01308683 ►Weekly epidemiological reports of mandatory notifiable conditions, produced and disseminated following international standards (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 52.00 52.00 52.00 Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 SESAL continues to produce and disseminate weekly epidemiological reports, adhering to established Comments: international standards for mandatory notification. Each year 52 reports were produced. Enhancing water resources governance and climate resilience IN01308681 6/16/2023 Page 3 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras DRM Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat DDO) (P172567) ►Water Basin Councils created and operating to reduce water‐related risks, in the Dry Corridor region in line with the Water Security Strategy (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 4.00 5.00 Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 SERNA has formed and trained four (out of five) Sub-Basin Councils in the Dry Corridor region, corresponding to Nacaome, Sampile, Goascorán,and the lower Choluteca basins. This indicator has been Comments: partially met. IN01308684 ►A National Water Authority established and operational (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Apr-2020 31-May-2022 06-Jun-2023 30-Jun-2023 SERNA conveyed to the Bank that currently the Government has no immediate plans to establish the ADA as outlined in the Regulation of the General Water Law approved in September 2021 and the 2009 General Water Law. The Government deems it unfeasible to create the ADA at this time due to the lack of Comments: adequate fiscal resources and the overall government objective of institutional consolidation. Instead, the focus is on bolstering the capacity of the General Directorate of Water Resources of SERNA to carry out the functions that would have been entrusted to the ADA. This indicator was not met. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P172567 IDA-65930 Effective USD 119.00 119.00 0.00 119.00 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P172567 IDA-65930 Effective 10-Apr-2020 13-Apr-2020 29-Apr-2020 30-Jun-2023 30-Jun-2023 Tranches 6/16/2023 Page 4 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras DRM Development Policy Credit with a Catastrophe Deferred Drawdown Option (Cat DDO) (P172567) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/16/2023 Page 5 of 5