Public Disclosure Copy The World Bank Implementation Status & Results Report Disaster Risk Management Development Policy Loan with a CAT DDO (P122738) Disaster Risk Management Development Policy Loan with a CAT DDO (P122738) LATIN AMERICA AND CARIBBEAN | Panama | Urban Development Global Practice | IBRD/IDA | Development Policy Lending | FY 2012 | Seq No: 6 | ARCHIVED on 29-Dec-2014 | ISR17583 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:18-Oct-2011 Effectiveness Date:07-Mar-2012 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:30-Jul-2014 Original Closing Date:30-Nov-2012 Revised Closing Date:30-Nov-2017 Program Development Objectives Program Development Objective (from Program Document) The overall development objective of the proposed operation is to enhance the Government of Panama's capacity to implement its disaster risk management program for natural disasters as part of its disaster risk management (DRM) national framework. The DPL with CAT DDO will provide a source of immediate liquidity in case of a natural disaster. The DPL with a CAT DDO instrument is designed to be a quick and flexible source of financing. PHRPDODEL Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  --  Low Implementation Status and Key Decisions This project was approved on October 18, 2011, signed on January 4, 2012, declared effective on March 7, 2012, and extended on May 21, 2014 through November 30, 2017. Since then, the GoP has consistently continued implementing its DRM Program and has shown steady progress towards achieving the PDO in three areas related to the project prior actions. I. Comprehensive Disaster Risk Management National Policy-PNGIR. The GoP has consolidated and upgraded the legal status of the National Platform for DRR through the enactment of Executive Decree No. 41 in January 2013, which also broadens the platform’s membership to include new institutions from civil society, academia and the private sector Also empowered by this Executive Decree, the National Platform has established its first Directorate Board (Resolution 02-04-2014) and has continued fostering the development of sub-national DRR platforms in various provinces. Additionally and in line with the PNGIR, the GoP has approved the National Post-disaster Recovery Framework, which is the first of this nature in Panama (Resolution 01-04-2014). II. DRM National Plan. The Plan was approved by the DRM National Platform (Resolution 01-04-2014) on April 24, 2014. The Plan will span from 2015 to 2020, and will conclude a wide participatory consultation process initiated in mid-2013. At the same time, the Ministries of Economy and Finance (MEF), and 12/29/2014 Page 1 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Disaster Risk Management Development Policy Loan with a CAT DDO (P122738) Housing and Land Use Planning (MIVIOT) have continued implementing several priority actions, including: (i) MEF is already implementing a new DRM budgetary code (Resolution No. 030, of March 2012), allows institutions to submit investment proposals and channel resources for ex-ante DRM initiatives, and (ii) since December 2013, MIVIOT has, in partnership with other institutions, started a probabilistic seismic risk assessment for the Panama City metropolitan area, building on the successfully implemented CAPRA study in David (conducted in 2012). III. MEF Directorate of Investment, Concessions, and Risks (DICRE) finalized the development of a Disaster Risk Financing and Insurance Strategic Framework. This Strategic Framework will be implemented through a 5-year Action Plan currently being developed by DICRE with the Bank’s support. In addition, DICRE is planning to establish a Risk Department. It is also worth mentioning that the GoP submitted a letter to the Central American Council of Ministers of Finance (COSEFIN) stating its interest in further exploring a potential membership with the Caribbean Catastrophe Risk Insurance Facility (CCRIF). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Low Macroeconomic  --  --  Low Sector Strategies and Policies  --  --  Low Technical Design of Project or Program  --  --  Low Institutional Capacity for Implementation and Sustainability  --  --  Low Fiduciary  --  --  Low Environment and Social  --  --  Low Stakeholders  --  --  Low Other  --  --  -- Overall  --  --  Low Results Results Indicators 12/29/2014 Page 2 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Disaster Risk Management Development Policy Loan with a CAT DDO (P122738) PHINDIRITBL  Increased GoP capacity for disaster risk reduction (DRR) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 4.00 4.00 6.00 Date 30-Jan-2012 30-Apr-2014 10-Dec-2014 30-Nov-2017 Comments The key expected results and their status are: - Disaster Risk criteria incorporated in the National Public Investment System (SNIP) (target, guidelines incorporated into the SNIP). The MEF´s Directorate of Investment Programming developed a guide to introduce disaster risk evaluation for public investment assessments into the Procedures Manual of the National Public Investments Sytem (SINIP), a risk catalogue for its Public Investment Monitoring System (SITMEP), and a proposal for an amendment of the Proceedings Manual of the SINIP to introduce disaster risk analysis. Additionally, the GoP conducted the first disaster risk analysis in a pre-investment project (rehabilitation of Rio Sereno-Paso Canoas Highway), through a multi-sectoral exercise that included MEF, SINAPROC and the Ministry of Public Works (MOP), among others. The Directorate has recently launched a Geographic Information System for the SINIP, which includes disaster risk information and indicators. - Increased number of provinces with updated protocols Chiriquí, Bocas del Toro, Veraguas, Los Santos and Herrera have updated their protocols for disaster preparedness. SINAPROC in partnership with the Emergency Operations Committee (COE) developed a “National Preparedness and Response Plan for Tsunamis” and convened a first national workshop to develop a National Preparedness Framework for Post-Disaster Recovery. The expanded target is to increase the number to six (two more protocols against the baseline of 4) and to develop emergency protocols for the recently inaugurated “Panama City metro”. PHINDIRITBL  Key ministries carried out DRR priority actions identified in the 2011-2015 DRMNP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 6.00 Date 30-Jan-2012 30-Apr-2014 10-Dec-2014 30-Nov-2017 Comments The key expected results and their status are: Key ministries carried out DRR priority actions identified in the 2011 – 2015 DRMNP. Baseline: 0 - Three ministries achieved targets against the Disaster Risk Management Plan 2015-2020 i.e. (i) Ministry of Finance (approved the creation of a new budgetary code within the National Budget specific for DRM, which will allow the institutions to submit investment proposals and channel resources for ex-ante DRM initiatives (Resolution No. 030, of March 2013)); (ii) In February 2013, the Ministry of Housing and Land Use Planning (MIVIOT) endorsed a proposal for a National Policy on Land Use Planning which includes explicit reference to DRM criteria; additionally, MIVIOT in partnership with other institutions has started a probabilistic seismic risk assessment for the metropolitan area of Panama, building on the successfully implemented CAPRA study in David, finalized in 2012; and (iii) The National Environmental Authority (ANAM),updated the National Policy on Integrated Water Resources Management and the Regulatory Body of the Water Law (Executive Decrees No 479 and 480 respectively, April 2013), introducing key elements of DRM into the water management sector. Additionally, ANAM has updated (February 2013) the National Policy on Climate Change, which includes an explicit component on DRM. The expanded target is to increase the number of Ministries carring out DRR priority actions identified in the 2011 – 2015 DRMNP to 6 from the original 3. 12/29/2014 Page 3 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Disaster Risk Management Development Policy Loan with a CAT DDO (P122738) PHINDIRITBL  DRM financial protection policies, strategies, or instruments developed. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 30-Jan-2012 30-Apr-2014 10-Dec-2014 30-Nov-2017 Comments The key expected results and their status are: DRM financial protection policies, strategies, or instruments developed - Based on guiding principles previously endorsed by MEF, the MEF Directorate of Investment, Concessions, and Risks (DICRE) with support from the Bank has developed a Disaster Risk Financing and Insurance Strategic Framework. This Strategic Framework was formally approved on November 17, 2014, through an Executive Decree (No. 578). This is the first time that a country issues a Law for the adoption of a DRFI strategy. A 5 year action plan is currently under preparation by DICRE with the Bank’s support through a GFDRR grant. DICRE also commissioned (2013) a study to assess the coverage size of a National Emergency Fund to respond to frequent, small and medium level emergencies associated with the occurrence of natural hazards. Additionally, the GoP submitted a letter to COSEFIN stating the interest of the country in further exploring a potential membership to the Caribbean Catastrophe Risk Insurance Facility (CCRIF), and is assessing the cost and timing to become a participant (i.e. complete the documentation and purchase insurance coverage ). The expanded targets agreed in April 2014 include: (i) the DRFI Strategic Framework formally adopted (recently achieved) and (ii) Operational Plan for the DRFI Strategic Framework drafted and formally adopted (in progress). Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P122738 IBRD-80870 Effective USD 66.00 66.00 0.00 0.00 66.00 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P122738 IBRD-80870 Effective 18-Oct-2011 04-Jan-2012 07-Mar-2012 30-Nov-2012 30-Nov-2017 Tranches Restructuring History There has been no restructuring to date. 12/29/2014 Page 4 of 5 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Disaster Risk Management Development Policy Loan with a CAT DDO (P122738) Related Operations There are no related projects. 12/29/2014 Page 5 of 5 Public Disclosure Copy