Public Disclosure Copy The World Bank Implementation Status & Results Report Mato Grosso Fiscal Adjustment and Environmental Sustainability DPL (P164588) Mato Grosso Fiscal Adjustment and Environmental Sustainability DPL (P164588) LATIN AMERICA AND CARIBBEAN | Brazil | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Development Policy Lending | FY 2019 | Seq No: 4 | ARCHIVED on 16-Sep-2021 | ISR48015 | Implementing Agencies: Mato Grosso State Secretariat of Finance (Secretaria de Estado de Fazenda – SEFAZ), State of Mato Grosso Key Dates Key Project Dates Bank Approval Date: 24-May-2019 Effectiveness Date: 06-Sep-2019 Original Closing Date: 31-Dec-2021 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Program Development Objective (from Program Document) Program Development Objective of this DPL is to support the State of Mato Grosso to (i) regain fiscal sustainability and (ii) increase institutional capacity for sustainable agriculture, forest conservation and climate change mitigation. 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 Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions A fourth supervision mission took place (virtually) in August 2021. Implementation status of the project was assessed to be moderately satisfactory. The next supervision mission is expected to take place before the closing date of the operation in December 2021. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Substantial Substantial 9/16/2021 Page 1 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Mato Grosso Fiscal Adjustment and Environmental Sustainability DPL (P164588) Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results Results Indicators Support the Government of Mato Grosso’s efforts to regain fiscal sustainability IN01032719 ►Current savings as a percentage of adjusted net current revenue (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.60 10.80 14.90 5.00 Date 31-Dec-2017 31-Dec-2020 30-Jul-2021 31-Dec-2021 (assessed using the current savings indicator established and published by the STN) Comments: IN01032836 ►Personnel spending as share of net-current revenue (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 68.18 52.40 43.80 60.00 Date 31-Dec-2018 31-Dec-2020 30-Apr-2021 31-Dec-2021 (as published by the STN’s Boletim de Finanças dos Entes Subnacionais, using PAF methodology) Comments: IN01032838 ►Pension deficit realized in 2021 in percent of current revenues compared to 2018 projection (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.10 3.70 3.70 8.50 Date 15-May-2018 31-Dec-2020 31-Dec-2020 31-Dec-2021 (baseline was based on World Bank PROST model, intermediate actual results are observed annual Comments: deficits over time, target is the observed deficit for 2021) IN01032839 ►Revenues recovered by FEEF (cumulative total) (Amount(USD), Custom) 9/16/2021 Page 2 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Mato Grosso Fiscal Adjustment and Environmental Sustainability DPL (P164588) Baseline Actual (Previous) Actual (Current) End Target Value 85.00 304.00 304.00 400.00 Date 31-Dec-2018 31-Dec-2020 31-Dec-2020 31-Dec-2021 amount in Brazilian Reais (R$) million, cumulative over multiple years. Comments: IN01032840 ►Revenues raised from FETHAB commodities (annually) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 870.00 1,722.00 1,722.00 1,350.00 Date 31-Dec-2018 31-Dec-2020 31-Dec-2020 31-Dec-2021 amount is in Brazilian Reais, R$ million. Revenues raised from FETHAB commodities (not including Comments: fuels), annually. Increasing institutional capacity for sustainable agriculture, forest conservation and CC mitigation IN01032718 ►Annual deforestation in Mato Grosso’s portion of the Amazon biome (Square kilometer(km2), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,490.00 1,767.00 1,438.00 1,241.00 Date 31-Dec-2018 31-Dec-2020 30-Jul-2021 31-Dec-2021 Annual deforestation in Mato Grosso’s portion of the Amazon biome as assessed and published by Comments: PRODES IN01032720 ►Area of land for which CAR information has been validated by SEMA (cumulative total) (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2,900,000.00 5,900,000.00 7,000,000.00 20,000,000.00 Date 31-Dec-2018 31-Dec-2020 30-Jul-2021 31-Dec-2021 Area of land for which CAR information has been validated by SEMA (cumulative total) Comments: IN01032837 ►Resources mobilized in coordination with the PCI Institute for the implementation of the PCI strategy (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 53,000,000.00 125,300,000.00 125,300,000.00 90,000,000.00 Date 31-Dec-2018 31-Dec-2020 30-Jul-2021 31-Dec-2021 Resources mobilized in coordination with the PCI Institute for the implementation of the PCI strategy Comments: (cumulative total) 9/16/2021 Page 3 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Mato Grosso Fiscal Adjustment and Environmental Sustainability DPL (P164588) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164588 IBRD-89660 Effective USD 250.00 248.88 1.12 248.88 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164588 IBRD-89660 Effective 24-May-2019 06-Sep-2019 06-Sep-2019 31-Dec-2021 31-Dec-2021 Tranches Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/16/2021 Page 4 of 4