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: 3 | ARCHIVED on 19-Jun-2022 | ISR50964 | 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 Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Despite the halting of economic activity in Honduras for 2020-2021 due to the COVID-19 pandemic, the devastating impact of tropical storms Eta and Iota in November 2020 that had severe repercussions on the entire country, and the political transition in 2021, PDO and Implementation Progress are rated Satisfactory as four (out of six) results indicators have been achieved or even exceeded. The next implementation support mission is planned for March 2023. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial 6/19/2022 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) 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 IN01126621 ►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 1.00 6.00 1.00 Date 29-Apr-2020 10-May-2021 31-May-2022 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. By December, SEFIN reported it had developed under the DRMFS the following six financial instruments: i. Budget Reallocations; ii. The activation of the CERC to support the response to COVID -19 and Tropical Comments: Cyclones Eta and Iota, as well as reallocation of other external funds to support response efforts (approved) iii. External credits for the recovery to Eta and Iota (approved) iv. Contingent line of Credit, with the CAT DDO (approved) v. Non reimbursable cooperation (planned) vi. Placement of Bonds in the National Market. Enhancing the institutional framework for improved disaster risk management IN01126622 ►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 1.00 2.00 3.00 Date 29-Apr-2020 10-May-2021 31-May-2022 30-Jun-2023 The Honduran Disaster Risk Management Agency (Comisión Permanente de Contingencias; COPECO) designed and approved a new Disaster Risk Management (DRM) instrument: the Index for Risk Management (INFORM) at the municipal level. INFORM is an Comments: internationally recognized tool that assesses the risk of humanitarian crises and disasters that could exceed national and municipal response capacity. This instrument became an official information tool used by the Government to target the response to Eta/Iota emergencies. 6/19/2022 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) COPECO also developed a Geographic Information System (GIS) platform for Disaster Risk Management, DRG (GeoNode), implemented by the Directorate of Prevention Management and Directorate of Communication Information Technologies, in which it stores all the digital cartographic information existing in the country. It can be accessed on the following website: http://geonode.copeco.gob.hn/ IN01126625 ►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 46.00 249.00 40.00 Date 29-Apr-2020 10-May-2021 31-May-2022 30-Jun-2023 296 Municipal Emergency Plans (Planes de Emergencia Municipal; PEM) were prepared and approved, equivalent to 99% of the country's total municipalities, and already in excess of the results framework target of 119 municipalities (249%). This achievement is due to the Budget Law that now mandates the preparation of PEMs, for municipalities to access Government funds. PEMs include assessing the Comments: topography, hydrography, geology, and geotechnical conditions of the municipal and local territories. Efficiency in the preparation and implementation of the PEMs was reflected in the relatively efficient responsiveness of the municipalities when Eta and Iota tropical cyclones hit and damaged Honduras (contributing to significantly reducing the number of casualties compared to Hurricane Mitch in 1998). Strengthening health emergency preparedness and response capacities IN01126623 ►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 0.00 100.00 95.00 100.00 Date 29-Apr-2020 10-May-2021 31-May-2022 30-Jun-2023 In 2021, SESAL developed and adopted 19 (out of 20) Regional Pandemic, Epidemic, and Health Emergency Response Plans. Plan No. 20 regarding the Lempira Health Region was sent until 2022, Comments: which is why it was not considered within the progress for 2021. IN01126626 ►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 53.00 52.00 52.00 Date 29-Apr-2020 10-May-2021 31-May-2022 30-Jun-2023 In 2021, SESAL produced and disseminated 52 (out of 52 planned for 2021) epidemiological reports of Comments: mandatory notifiable conditions following international standards. Enhancing water resources governance and climate resilience IN01126624 ►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) 6/19/2022 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) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 5.00 Date 29-Apr-2020 10-May-2021 31-May-2022 30-Jun-2023 MiAmbiente formed and trained two (out of five) Water Basin Councils (in Guascorán and Sampile River), 91 Micro-Basins Councils, and 4 Sub-Basin Councils in the Dry Corridor region (Nacaome, Sampile, Comments: Goascorán, Lempa, and Choluteca basins), which are operating to reduce water-related risks, in line with the Water Security Strategy. IN01126627 ►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 10-May-2021 31-May-2022 30-Jun-2023 Regarding the restructuring of the National Water Authority, a few steps remain to achieve this target. However, a proposal for an Executive Agreement on the Regulations amendments of the Water Law, prepared by the Interinstitutional Committee, was sent to MiAmbiente. MiAmbiente signed the Regulations of the Water Law on September 16, 2021, and on October 6, 2021, it was published in the Official Gazette of Central America. Comments: Also, a draft proposal of the National Policy on Water Resources Management was socialized at the national level through 7 workshops, plus the internal ones (prepared by the Inter-institutional Coordination Committee), which was sent to the Secretariat of General Coordination. In December 2021, comments were received. To finalize this Draft, MiAmbiente proposed to hire consultants. 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 6/19/2022 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. 6/19/2022 Page 5 of 5