The World Bank Environmental Sustainability and Urban Resilience DPF (P174000) Program Information Document (PID) Appraisal Stage | Date Prepared/Updated: 19-Nov-2020 | Report No: PIDA30995 Page 1 of 5 The World Bank Environmental Sustainability and Urban Resilience DPF (P174000) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Project Name Parent Project ID (if any) Environmental Sustainability Mexico P174000 and Urban Resilience DPF (P174000) Region Estimated Board Date Practice Area (Lead) Financing Instrument Environment, Natural LATIN AMERICA AND Development Policy 17-Dec-2020 Resources & the Blue CARIBBEAN Financing Economy Borrower(s) Implementing Agency UNITED MEXICAN STATES SECRETAR�A DE HACIENDA Y CRÉDITO PÚBLICO Proposed Development Objective(s) Support (i) strengthening environmental sustainability and resilience, and (ii) expanding access to resilient urban infrastructure and social housing. Financing (in US$, Millions) FIN_SUMM_PUB_TBL SUMMARY Total Financing 750.00 DETAILS -NewFin3 Total World Bank Group Financing 750.00 World Bank Lending 750.00 Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. The country has been experiencing supply and demand shocks to the economy, generating negative impacts on firms, Page 2 of 5 The World Bank Environmental Sustainability and Urban Resilience DPF (P174000) employment, and households. As in other emerging economies, the recovery path is likely to be complex and it will need to be supported by critical economic reforms. At the same, the current juncture presents an opportunity to complement those efforts with reforms to enable more resilience to the shocks arising from climate change while still contributing to a stronger and better medium-term recovery Relationship to CPF 2. The proposed operation is fully aligned with the CPF. Specifically, the authorities’ policies supported by this operation will contribute to reach the CPF’s objectives 6 and 7. C. Proposed Development Objective(s) 3. The Program Development Objectives of this operation are to support the authorities’ program of: (i) strengthening environmental sustainability and resilience, and (ii) expanding access to resilient urban infrastructure and social housing. Key Results 4. The policies are expected to enable more resilience to the shocks arising from climate change while still contributing to a stronger and better medium-term recovery by fostering the reduction of air pollution (which also leads to significant health gains), reducing deforestation, strengthening mechanisms to help mitigate emissions of greenhouse gases and short-lived climate pollutants, and improve urban and social housing resilience. D. Project Description 5. This operation supports specifically the authorities’ program of strengthening environmental, urban and social housing resilience, as part of a broader aim of building better and with more climate change sustainability over the recovery and the medium term. E. Implementation Institutional and Implementation Arrangements 6. The SHCP, in close coordination with SEMARNAT and SEDATU, and other authorities, will take the lead in monitoring progress and implementation of this operation, with ongoing support from the WB. The results indicators selected to monitor and evaluate implementation progress and the achievement of program outcomes will be monitored by the institution that takes the coordination lead for the respective prior actions. F. Poverty and Social Impacts, and Environmental, Forests, and Other Natural Resource Aspects Poverty and Social Impacts 7. The policy actions supported by the DPF are expected to contribute to poverty reduction and have positive social impacts in short, medium and long terms. Policy measures related to support environmental sustainability and resilience would have positive impacts on the poor and vulnerable over the medium to long term. Policy measures Page 3 of 5 The World Bank Environmental Sustainability and Urban Resilience DPF (P174000) aimed at supporting a more climate and disaster resilient housing and local infrastructure are expected to have a monetary impact on the poor and vulnerable in the short-term. Environmental, Forests, and Other Natural Resource Aspects 8. The policy measures supported by this operation would have significant positive effects on Mexico’s climate change and environmental health priorities. G. Risks and Mitigation 9. The overall level of risk for the proposed operation is assessed as substantial. The rating derives from the multiple shocks the country is experiencing and the high degree of uncertainty as to the length and depth of the global economic fallout in the current context. . CONTACT POINT World Bank Katharina Siegmann, Gregor V. Wolf, Luis Miguel Triveno Chan Jan Environmental Specialist Borrower/Client/Recipient UNITED MEXICAN STATES Implementing Agencies SECRETAR�A DE HACIENDA Y CRÉDITO PÚBLICO Jose de Luna Martinez Titular Crédito Público jose_deluna@hacienda.gob.mx Page 4 of 5 The World Bank Environmental Sustainability and Urban Resilience DPF (P174000) FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Katharina Siegmann, Gregor V. Wolf, Luis Miguel Triveno Chan Jan Approved By APPROVALTBL Country Director: Pablo Saavedra 26-Oct-2020 Page 5 of 5