103327
                                          Peru
         Boosting Human Capital and Productivity Development Policy Financing
                           with a Deferred Drawdown Option
                                          and
      Public Expenditure and Fiscal Risk Management Development Policy Financing
                           with a Deferred Drawdown Option

                                           Chair Summary ∗

                                           February 11, 2016

       Executive Directors approved the Peru Boosting Human Capital and Productivity
Development Policy Financing (DPF) with a Deferred Drawdown Option in the amount of
US$1.25 billion. They also approved the Peru Public Expenditure and Fiscal Risk Management
DPF with a Deferred Drawdown Option in the amount of US$1.25 billion. Directors acknowledged
the sound macroeconomic and structural policies in Peru over the last decade and the significant
advances in shared-prosperity and poverty reduction. Directors welcomed that both operations
support Peru’s commitment to comprehensive reforms, and acknowledged the value of both
operations to help manage the risks stemmed from external shocks on Peru’s medium-term
financing plan.

         With respect to the Boosting Human Capital and Productivity operation, Directors
supported the authorities’ objective of boosting productivity and commended the reforms taken
with the aim of: (i) enhancing the education policy framework to enable better quality of skills,
(ii) facilitating the entry, operation, and exit of firms; and (iii) reducing transaction costs in trade.
Directors underscored the importance of reducing inequalities in educational opportunities
between income groups, regions and genders.

       With respect to the Public Expenditure and Fiscal Risk Management operation, Directors
supported the authorities’ objective of improving: (i) the management and reporting of public
expenditures in subnational governments; and (ii) the Government’s legal and institutional
framework for public-private partnerships (PPPs). Directors acknowledged that the focus of this
operation on policy changes with long-term impact supports policy and implementation continuity
beyond the financing option for the incoming administration.

        More broadly, Directors encouraged authorities to continue improving the efficiency and
effectiveness of public expenditure and financial management. They emphasized the need for the
World Bank Group to support the authorities on further deepening and broadening reforms in these
areas through supervision of the operations as well as other lending and non-lending services,
including technical assistance. Finally, Directors noted the importance of sharing and
disseminating experiences and lessons of these operations with other countries and regions.




*This summary is not an approved record.