The World Bank Report No: ISR2795 Implementation Status & Results Dominican Republic Public Disclosure Copy First Programmatic Public Finance and Social Sector Development Policy Loan (P115145) Project Name: First Programmatic Public Finance and Social Sector Program Stage: Implementation Seq.No: 1 Status: ARCHIVED Last Modified Date: 09-Feb-2011 Development Policy Loan (P115145) Country: Dominican Republic Approval FY: 2010 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Development Policy Lending Implementing Agency(ies): Key Dates Board Approval Date 17-Nov-2009 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date Last Archived ISR Date Effectiveness Date 01-Dec-2009 Revised Closing Date 31-Dec-2010 Actual Mid Term Review Date Program Development Objectives Program Development Objective (from Program Document) 1. Improvement of the quality and efficiency of public spending, especially for poverty reduction and human development. a. Improvement of institutions for budgeting and expenditure management. b. Improvement of quality of health sector spending. c. Improvement of targeting of spending intended for the poor. 2. Mitigation of the impact of the ongoing global economic crisis on the DR's public finances and reduction of vulnerability to future shocks. i. Reduction of outlays for inefficient subsidies. 11. Improvement of cost recovery in the energy sector. a. Control of spending b. Improvement in the transparency of tax policies. c. Improvement of effectiveness of revenue collection by domestic and customs authorities. Has the Program Development Objective been changed since Board Approval of the Program? Public Disclosure Copy Yes No Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Overall Implementation Progress (IP) Satisfactory Implementation Status Overview This operation supported two key development objectives: 1) Improvement of the quality and efficiency of public spending, especially for poverty reduction and human development and 2) Mitigation of the impact of the ongoing global economic crisis on the DR's public finances. These objectives have been largely achieved given that key reforms and government interventions have been implemented. Amongst these: a) Targeting of social spending has been improving through the process of updating the SIUBEN (the targeting instrument); b) financing of the Subsidized Regime (which covers the poorer population) for health insurance has been maintained in the government budget; c) Reduction of the Page 1 of 4 The World Bank Report No: ISR2795 fiscal burden from the losses of the electricity sector (through tariff increases, reduction of subsidies, elimination of non targeted subsidy systems, eliminate excessive operative expenditures of the electricity public holding company); d) improvements in the administration of Tax Policies (publication of annex to the government budget estimating the costs of Public Disclosure Copy the exceptions/exemptions to taxes on domestic and international transactions). It is important to emphasize that this operation was conceived as a single tranche but that most of the reform momentum gained during the preparation, negotiation and implementation of this DPL has not been lost. In fact in most of the areas indicated above - especially in terms of improving the quality of expenditure for poverty reduction and strengthening the macroeconomic framework - the government has achieved further progress through the support of the PASS DPL series and of the IMF Stand By Arrangement. Results Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Public Debt Ratio 36.90 35.70 40.00 Date Date Date 31-Dec-2009 31-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Percentage Excluding BCRD recapitalization bonds. Excluding BCRD recapitalization bonds Indicator Baseline Current End Target Indicator Name Value Value Value Elimination of electricity subsidy via the PRA mechanism about 140,000 close to 0 0 Date Date Date 31-Dec-2009 31-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Public Disclosure Copy Custom Indicator Text figures are expressed in number of households and not individuals (average hh size in DR is: 4.5) Page 2 of 4 The World Bank Report No: ISR2795 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of entitled beneficiaries of CCT will be close to number of 0.00 140000.00 100000.00 PRA beneficiaries Date Date Date 31-Dec-2009 31-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Number figures are expressed in number of households and not individuals (average hh size in DR is: 4.5) Indicator Baseline Current End Target Indicator Name Value Value Value "Fiscal sustainability is improved through a strategy to rationalize and No strategy Strategy available Strategy available restrain tax exemptions and improve tax administration" Date Date Date 31-Dec-2009 31-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Strategy was published on website of Min of Finance and was acknowledged in the review of the IMF SBA program Indicator Baseline Current End Target Indicator Name Value Value Value "Transfers from the Ministry of Finance to the CDEEE to cover the 1.40 1.20 0.80 electricity sector deficit (% of GDP)" Date Date Date 31-Dec-2009 31-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Public Disclosure Copy Custom Indicator Percentage the 1.2 is an estimate the final value is not available yet; Data on Financial Performance (as of 09-Feb-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P115145 IBRD-77790 Closed 17-Nov-2009 18-Nov-2009 01-Dec-2009 31-Dec-2010 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115145 IBRD-77790 Closed USD 150.00 150.00 0.00 150.00 0.00 100.00 Page 3 of 4 The World Bank Report No: ISR2795 Tranches Tranche 1 Public Disclosure Copy Amount (USD) Expected Release Date Actual Release Date Status 0 Pending Released Key Decisions Regarding Implementation No specific decisions are highlighted. Restructuring History There has been no restructuring to date. Related Operations P115145-First Programmatic Public Finance and Social Sector Development Policy Loan Public Disclosure Copy Page 4 of 4