50753 STATUS OF PROJECTS IN EXECUTION ­ FY05 SOPE REGION: LATIN AMERICA AND THE CARIBBEAN COUNTRY: PARAGUAY Operations Policy and Country Services SEPTEMBER 23, 2005 Report on the Status of Projects in Execution - FY05 Region: Latin America and the Caribbean Country: Paraguay Introduction The Status of Projects in Execution (SOPE) Report for FY05 provides information on all IBRD/IDA projects that were active on and beyond June 30, 2005. Thus it bridges 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. The World Bank has issued a SOPE Report every year as an internal communication to the Board of Executive Directors. Now, in accordance with the Bank's revised disclosure policy, the SOPE Report is also available to the public. By publishing this improved report, we have addressed one of the main concerns we heard from the public during disclosure consultations ­ that the public has very little access to information on projects while they are being implemented. Readers familiar with past reports will note that projects that closed during the fiscal year are no longer included in the SOPE, since their Implementation Completion Reports are now also disclosed. The FY05 SOPE introduces a new element: in order to disclose project-by-project comparisons of disbursement estimates and actual disbursements, the SOPE report contains a line chart1 showing the original estimated disbursement schedule, the latest approved revised schedule (if any) and actual disbursements for investment operations and a table showing the loan/credit/grant amount and disbursements to date. 1 Notes: · Amounts for Projects in currencies other than U.S. dollars may not match exactly due to exchange rate fluctuations over the life of the project. · Disbursement graphs are not included for Development Policy Loans, which provide quick- disbursing external financing to support policy and institutional reforms. For these loans, funds are disbursed in one or more stages (tranches), released when the borrower complies with agreed conditions. · Projects which are not yet effective may not have a planned disbursement schedule and thus may not include a graph. 1 Status of Projects in Execution - FY05 Country: Paraguay Project Name (ID): Natural Resources Management (P007918) Country: Paraguay Board Approval Date: 02/22/1994 Midterm Review Date: 12/03/1998 Closing Date: 12/31/2005 Loan/Credit/Grant Number: IBRD-37080 Sector(s): General agriculture, fishing, and forestry (28%), Other social services (28%), Roads and highways (25%), Micro and SME finance (12%), Central government administration (7%) Theme(s): Biodiversity (P), Rural policies and institutions (P), Other rural development (P), Indigenous peoples (S), Land administration and management (S) Project Development Objectives: The objectives are to: (a) establish the institutional framework to resolve the major agricultural and natural resources problems in the Project Area; (b) obtain relevant information and implement a system of natural resources protection; and (c) assist the Small Farmer and Eligible Communities in the creation of sustainable and diversified agricultural production systems. Progress toward achieving development objective(s): Although budgetary constraints persist, the project continues to progress well. During fiscal year 2005, project activities focused on the transfer of experience to stakeholders, the consolidation of the activities in the expanded area, and carrying out the final evaluation of the project. Activities in the original, as well as the expanded, area are progressing satisfactorily thereby, allowing the consolidation and dissemination of the project's natural resources management strategy as a basis for a national strategy of sustainable rural development. In addition, progress is being made in the second phase of the Community Rural Investments component, with 223 micro-projects being financed and close to 100 more expected to commence during fiscal year 2006. Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-37080 Effective 50.00 44.02 5.98 0.00 60 50 US$ Millions 40 30 20 10 0 1994 Q3 1995 Q1 1995 Q3 1996 Q1 1996 Q3 1997 Q1 1997 Q3 1998 Q1 1998 Q3 1999 Q1 1999 Q3 2000 Q1 2000 Q3 2001 Q1 2001 Q3 2002 Q1 2002 Q3 2003 Q1 2003 Q3 2004 Q1 2004 Q3 2005 Q1 2005 Q3 Planned Actual to date Formally Revised 2 Status of Projects in Execution - FY05 Project Name (ID): Fourth Rural Water Supply and Sanitation (P039983) Country: Paraguay Board Approval Date: 08/28/1997 Midterm Review Date: 09/15/2001 Closing Date: 12/31/2005 Loan/Credit/Grant Number: IBRD-42220, IBRD-42230 Sector(s): Water supply (68%), Sewerage (22%), Central government administration (9%), Sub-national government administration (1%) Theme(s): Rural policies and institutions (P), Rural services and infrastructure (P), Decentralization (P), Participation and civic engagement (P) Project Development Objectives: The objectives are to: (a) increase the access of rural communities to water supply and sanitation; and (b) establish SENASA (National Environment Sanitation Service) as an efficiently managed promoter of water supply and sanitation activities. Progress toward achieving development objective(s): The project continues to make good progress toward achievement of the objectives. By June 2005, 257 water supply systems in rural communities were completed and 64 systems are under construction and expected to begin operation by mid-August 2005, for a total of 321 systems (target of 330). Thirty-five indigenous communities in the El Chaco Region are benefiting from water systems and sanitation facilities and 36 systems are under construction. SENASA continues working towards becoming a more effective promoter rather that a direct provider of Rural Water Supply and Sanitation Services, with involvement of the private sector. As of June 2005, four systems are under operation by the local private sector and two more (to benefit 4,000 families), are expected to start service provision by October 2005. SENASA continues to promote and strengthen Associations of "Juntas de Saneamiento" (local water users committees). Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-42220 Effective 20.00 16.81 3.19 0.00 IBRD-42230 Effective 20.00 9.11 10.89 0.00 45 40 35 US$ Millions 30 25 20 15 10 5 0 1998 Q1 1998 Q4 1999 Q2 1999 Q4 2000 Q2 2000 Q4 2001 Q2 2001 Q4 2002 Q2 2002 Q4 2003 Q2 2003 Q4 2004 Q2 2004 Q4 2005 Q2 2005 Q4 2006 Q2 Planned Actual to date Formally Revised 3 Status of Projects in Execution - FY05 Project Name (ID): Programmatic Financial Sector Adjustment (P039994) Country: Paraguay Board Approval Date: 04/05/2005 Closing Date: 09/30/2006 Loan/Credit/Grant Number: IBRD-72880, JPN-27085, JPN-51360 Sector(s): Banking (53%), General finance (28%), Central government administration (13%), Law and justice (6%) Theme(s): Standards and financial reporting (P), Regulation and competition policy (P), State enterprise/bank restructuring and privatization (P), Legal institutions for a market economy (P), Debt management and fiscal sustainability (S) Project Development Objectives: The objective is to strengthen the financial system, enhancing the Government's capacity to reduce vulnerabilities, thus improving economic growth prospects and increasing the flow of credit in the country. Progress toward achieving development objective(s): The project was not effective before the close of the reporting period. Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-72880 Not Effective 15.00 0.00 15.00 0.00 JPN-27085 Closed 0.75 0.60 0.00 0.15 JPN-51360 Effective 0.68 0.52 0.16 0.00 4 Status of Projects in Execution - FY05 Project Name (ID): Pilot Community Development (P069269) Country: Paraguay Board Approval Date: 03/21/2002 Closing Date: 12/31/2006 Loan/Credit/Grant Number: IBRD-71090, JPN-26317 Sector(s): Central government administration (25%), General agriculture, fishing, and forestry (25%), General industry and trade (25%), Other social services (25%) Theme(s): Participation and civic engagement (P), Improving labor markets (P), Poverty strategy, analysis, and monitoring (S), Rural non-farm income generation (S), Rural services and infrastructure (S) Project Development Objectives: The objective is to contribute to poverty reduction among poor urban and rural households in the Itapua, Misiones and Neembucu Departments. Progress toward achieving development objective(s): By the end of fiscal year 2005, 85 subprojects are under implementation, benefiting more than 1,000 families (almost 6,000 direct beneficiaries), with an average investment per family of US$1,528. So far, 70 percent of the subprojects have been for rural groups. Out of all project beneficiaries, 38 percent are women, 12 percent youth and 12 percent indigenous peoples (only in Itapúa). All Local (44) and Departmental (3) Development Committees are operating. Strengthening of Departmental Development Committees and Local Development Committees as well as local governments and beneficiary groups has progressed. Training to these committees has continued. However, institutional strengthening activities are behind schedule due to the initial emphasis on advancing with the implementation of community sub- projects. Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-71090 Effective 9.00 2.34 6.66 0.00 JPN-26317 Closed 0.24 0.24 0.00 0.00 10 9 8 US$ Millions 7 6 5 4 3 2 1 0 2002 Q3 2002 Q4 2003 Q1 2003 Q2 2003 Q3 2003 Q4 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 Planned Actual to date Formally Revised 5 Status of Projects in Execution - FY05 Project Name (ID): Education Reform (P073526) Country: Paraguay Board Approval Date: 07/31/2003 Closing Date: 06/30/2007 Loan/Credit/Grant Number: IBRD-71900 Sector(s): Secondary education (60%), Central government administration (20%), Sub-national government administration (10%), Other social services (5%), Tertiary education (5%) Theme(s): Education for the knowledge economy (P), Education for all (P), Access to urban services and housing (S), Rural services and infrastructure (S), Participation and civic engagement (S) Project Development Objectives: The objectives are to improve management and efficiency of the education system and educational outcomes and equity in opportunity at the secondary education level. Progress toward achieving development objective(s): Project implementation was delayed one year for the approval of this project by Parliament, yet political and popular support for the education reform continues to be strong. Fifty education leaders are requesting master's programs in key areas, and another fifty will be selected soon, which will create a strong cohort of education leaders strategically placed across the country. On the issue of equitable access, the scholarship program has begun and about 2,800 poor students have received cash transfers to attend secondary school. Strict eligibility criteria were applied and the process has been transparent and highly publicized. Steps have already been taken to initiate the process of redesigning the management system in the Ministry of Education, with active participation from key stakeholders. The design of accreditation and certification systems is also underway, and regular consultations are made with teacher training institutes (for accreditation) and teacher unions as part of the process. Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-71900 Effective 24.00 1.85 22.15 0.00 30 25 US$ Millions 20 15 10 5 0 2004 Q1 2004 Q2 2004 Q3 2004 Q4 2005 Q1 2005 Q2 2005 Q3 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 Planned Actual to date Formally Revised 6 Status of Projects in Execution - FY05 Project Name (ID): Financial Sector Technical Assistance (P080961) Country: Paraguay Board Approval Date: 04/05/2005 Closing Date: 06/30/2010 Loan/Credit/Grant Number: IBRD-72870 Sector(s): Banking (60%), Payment systems, securities clearance, and settlement (40%) Theme(s): State enterprise/bank restructuring and privatization (P), Regulation and competition policy (P), Standards and financial reporting (S), Legal institutions for a market economy (S) Project Development Objectives: The objective is to assist with the modernization of the financial system, modernize its payments and settlements system, and strengthen the government's capacity to encourage safe and sound financial intermediation, manage weaknesses and stresses in the financial system, and prevent crisis contagion effects. Progress toward achieving development objective(s): The project was not effective before the close of the reporting period. Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-72870 Not Effective 5.70 0.00 5.70 0.00 7 6 5 US$ Millions 4 3 2 1 0 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2010 Q1 2010 Q2 2010 Q3 2010 Q4 Planned Actual to date Formally Revised 7 Status of Projects in Execution - FY05 Project Name (ID): Modernization of the Ministry of Finance (P087036) Country: Paraguay Board Approval Date: 04/05/2005 Closing Date: 06/30/2009 Loan/Credit/Grant Number: IBRD-72860, JPN-53141 Sector(s): Central government administration (98%), Law and justice (2%) Theme(s): Public expenditure, financial management, and procurement (P), Debt management and fiscal sustainability (P), Administrative and civil service reform (S), Participation and civic engagement (S), Tax policy and administration (S) Project Development Objectives: The objective is to improve fiscal sustainability and quality of public expenditures. Progress toward achieving development objective(s): The project was not effective before the close of the reporting period. Lending Information/Disbursement Summary (USD millions, as of June 30 2005) Loan/Credit/ Status Amount Disbursed Undisbursed Cancellation Grant IBRD-72860 Not Effective 7.50 0.00 7.50 0.00 JPN-53141 Effective 0.80 0.61 0.19 0.00 8 7 6 US$ Millions 5 4 3 2 1 0 2005 Q4 2006 Q1 2006 Q2 2006 Q3 2006 Q4 2007 Q1 2007 Q2 2007 Q3 2007 Q4 2008 Q1 2008 Q2 2008 Q3 2008 Q4 2009 Q1 2009 Q2 2009 Q3 Planned Actual to date Formally Revised 8