Public Disclosure Copy The World Bank Implementation Status & Results Report Public Expenditure and Fiscal Risk Management DPF-DDO (P154981) Public Expenditure and Fiscal Risk Management DPF-DDO (P154981) LATIN AMERICA AND CARIBBEAN | Peru | Governance Global Practice | IBRD/IDA | Development Policy Lending | FY 2016 | Seq No: 2 | ARCHIVED on 21-Nov-2019 | ISR39206 | Implementing Agencies: Ministerio de Economía y Finanzas, Republic of Peru Key Dates Key Project Dates Bank Approval Date: 11-Feb-2016 Effectiveness Date: 28-Apr-2016 Original Closing Date: 18-Feb-2019 Revised Closing Date: 18-Feb-2022 pdoTable Project Development Objectives Program Development Objective (from Program Document) The proposed operation aims at supporting the Government of Peru's efforts to improve: (i) the management and reporting of public expenditures in subnational governments (SNGs), and (ii) the Government's legal and institutional framework for public-private partnerships (PPPs). 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 Moderate Moderate Implementation Status and Key Decisions The macroeconomic policy framework continues to be adequate and the implementation of the supported reform program is on track. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate 11/21/2019 Page 1 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Public Expenditure and Fiscal Risk Management DPF-DDO (P154981) Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results Results Indicators Improve the management and reporting of public expenditures in subnational governments (SNGs) IN00559223 ►Percentage of regional governments (RGs) and local governments (LGs) in compliance with fiscal rules for SNGs (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 50% of RGs (representing 66.3% of RGs total revenue) met 65% of RGs and 70% 65% of RGs and 87% of 73% of RGs and 93% fiscal rules' targets and of LGs met fiscal rules Value LGs complied with total of LGs complied with 59% of LGs or their convergence debt balance rule in 2016 both fiscal rules (representing 66.4% of targets total LGs revenue) met fiscal rules' targets Date 31-Dec-2014 01-Dec-2017 13-Nov-2019 29-Dec-2017 Both fiscal rules (Regla fiscal del saldo de deuda total, and Regla fiscal de ahorro en cuenta corriente) are now being reported in the annual report, following the Legislative Decree 1275. The annual reports can be found on the website of the Ministry of Finance at; Comments: https://www.mef.gob.pe/es/reporte-fiscal/informe-anual-de-cumplimiento-de-reglas-fiscales-de-los- gobiernos-regionales-y-gobiernos-locales . IN00559159 ►Percentage of RGs and LGs that submitted the Multiannual Report of Fiscal Management in compliance with reporting obligations (gradual reporting obligation through a six year period; 2015-2020) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target RGs and LGs are no 100% of RGs and 99% of longer required to the LGs required to submit the Multiannual 100% of RGs submit 100% of RGs submit the submit the Multiannual Report of Fiscal the Multiannual Report Multiannual Report of Fiscal Management Card Management as of Fiscal Management; Value Fiscal Management; 80% (in conformity with the reports are being 80% of LGs that of LGs that represent gradual implementation automatically represent 70% of total 50% of total LGs' income schedule set forth in RM generated from the LGs' income 338-2014-EF/15). system. Instead, the RGs and LGs that do 11/21/2019 Page 2 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Public Expenditure and Fiscal Risk Management DPF-DDO (P154981) not comply with the fiscal rules are required to present Fiscal Adjustment Commitments (CAFs). Of this group, 100% of RGs and 95% presented their CAFs in 2019. Date 31-Dec-2015 01-Dec-2017 13-Nov-2019 29-Dec-2017 IN00559224 ►Number of managerial positions covered by professional public managers (Directivos Publicos) as a percentage of total managerial positions in RGs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 77.00 Date 31-Dec-2014 01-Dec-2017 13-Nov-2019 29-Dec-2017 Given the implementation delay in the Public Directors service regime, this indicator has not advanced. The Government is continuing to advance in preparation for the hiring of staff under the Public Directors Comments: regime, with individuals beginning to enter into competitions for positions and SERVIR focusing on capacity building so as to ensure that the Public Directors are well-prepared following their placement. Improve the Government's legal and institutional framework for public-private partnerships (PPPs) IN00559225 ►Percentage of PPP promoters (spending units) at all levels of government that issue the Multiannual Report on PPP Investment on a yearly basis (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Dec-2014 29-Dec-2017 13-Nov-2019 29-Dec-2017 The final target was achieved in 2017. The public entities which presented reports in 2017 included: Ministry of Transportation and Communications; Ministry of Housing, Construction, and Sanitation; Ministry of Energy and Mining (both the energy and mining sectors); Ministry of Foreign Trade Comments: and Tourism; Ministry of Justice and Human Rights; Metropolitan Municipality of Lima; Regional Government of San Martin; Regional Government of Huánuco; Provincial Government of Huánuco; and the District Municipality of San Isidro. IN00559287 ►Number of unsolicited proposals presented for evaluation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 147.00 32.00 32.00 88.00 Date 31-Dec-2015 29-Dec-2017 13-Nov-2019 29-Dec-2017 The final target was achieved in 2017. Twenty eight of the 32 proposals were for PPPs (six self-financed private activities and 22 co-financed private activities) and four were for operation and maintenance only Comments: PPPs. IN00559306 ►Number of PPP contracts without MEF's favorable opnion prior to the tender process at all levels of government (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/21/2019 Page 3 of 4 Public Disclosure Copy The World Bank Implementation Status & Results Report Public Expenditure and Fiscal Risk Management DPF-DDO (P154981) Value 17.00 0.00 0.00 0.00 Date 31-Dec-2014 29-Dec-2017 13-Nov-2019 29-Dec-2017 The final target of 0 has been achieved; no PPP contracts pass through the tender process without MEF’s Comments: favorable opinion. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154981 IBRD-85850 Effective USD 1,250.00 1,250.00 0.00 0.00 1,250.00 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154981 IBRD-85850 Effective 11-Feb-2016 04-Apr-2016 28-Apr-2016 18-Feb-2019 18-Feb-2022 Tranches Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/21/2019 Page 4 of 4