Document of The World Bank Report No: ICR3334 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-81690) ON A LOAN IN THE AMOUNT OF US$200 MILLION TO THE MUNICIPALITY OF BELO HORIZONTE WITH THE GUARANTEE OF THE FEDERATIVE REPUBLIC OF BRAZIL FOR A 
 BELO HORIZONTE INCLUSIVE URBAN DEVELOPMENT POLICY LOAN May 26, 2015 Social, Urban, Rural, and Resilience Global Practice Brazil Country Management Unit Latin America and the Caribbean Region CURRENCY EQUIVALENTS (Exchange Rate Effective February 10, 2015) Currency Unit = Brazil Real BR R$ 1.00 = US$ 0.35 US$ 1.00 = BR R$ 2.82 BRAZIL - Government Fiscal Year January 1 – December 31 ABBREVIATIONS AND ACRONYMS AEIS Special Areas of Social Interest (Zona Especial de Interesse Social) BHMR Belo Horizonte Goals and Results Program (BH Metas e Resultados) CPS Country Partnership Strategy DPL Development Policy Loan FUFIN Financial Fund FY Fiscal Year GDP Gross Domestic Product GEIUR Urban Inclusion Unit IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report IADB Inter-American Development Bank IBRD International Bank for Reconstruction and Development IDF Family Development Index (Índice de Desenvolvimento de Familia) ISR Implementation Status Report KPI Key Performance Indicator MCMV My Home My Life (Minha Casa Minha Vida) M&E Monitoring and Evaluation NAC Rain Alert Units (Núcleos de Alerta de Chuvas) OP Participative Budget (Orçamento Participativo) PBH Municipality of Belo Horizonte (Prefeitura de Belo Horizonte) PD Program Document PDO Project Development Objective PPA Multi-year Budget Plan (Plano Plurianual) PPR Regional Participative Planning (Planeamento Participativo Regional) R$ Brazilian real RBM Results-Based Management SMARU Municipal Secretariat of Urban Regulations (SMARU) TRACE Rapid Municipal Energy Assessment (Avaliação Rápida de Energia na Cidade) TWC Technical Working Committee URBEL Urban and Housing Company Vice President: Jorge F. Calderon Country Director: Deborah L. Wetzel Sector Manager: Anna Wellenstein Task Team Leader: Josef L. Leitmann ICR Team Leader: Josef L. Leitmann BRAZIL BELO HORIZONTE INCLUSIVE URBAN DEVELOPMENT POLICY LOAN CONTENTS Data Sheet……………………………………………………………………………………2 A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Program Performance in ISRs H. Restructuring 1. Program Context, Development Objectives and Design ............................................ 7 2. Key Factors Affecting Implementation and Outcomes ............................................ 10 3. Assessment of Outcomes .......................................................................................... 12 4. Assessment of Risk to Development Outcome ......................................................... 21 5. Assessment of Bank and Borrower Performance ..................................................... 21 6. Lessons Learned........................................................................................................ 24 Annex 1 Bank Lending and Implementation Support/Supervision Processes.............. 26 Annex 2. Beneficiary Survey Results ........................................................................... 28 Annex 3. Stakeholder Workshop Report and Results................................................... 29 Annex 4. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 30 Annex 5. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 40 Annex 6. Summary of Main Outcomes ........................................................................ 41 Annex 7. List of Supporting Documents ...................................................................... 55 Map ..………………………………………………………………………………….56 A. Basic Information Belo Horizonte Urban Country: Brazil Program Name: Development Policy Loan Program ID: P126749 L/C/TF Number(s): IBRD-81690 ICR Date: 04/23/2015 ICR Type: Core ICR Municipality of Belo Lending Instrument: DPL Borrower: Horizonte Original Total USD 200.00M Disbursed Amount: USD200.00M Commitment: Revised Amount: USD 200.00M Implementing Agencies: Municipal Secretary of Finance, Municipality of Belo Horizonte Co-financiers and Other External Partners: n.a. B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/28/2011 Effectiveness: 12/16/2013 Appraisal: 12/13/2011 Restructuring(s): Approval: 06/14/2013 Mid-term Review: 12/03/2013 Closing: 12/31/2014 12/31/2014 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Unsatisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2. Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Unsatisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating: Performance any) Potential Problem Program No Quality at Entry (QEA): None at any time (Yes/No): Problem Program at any Quality of Supervision No None time (Yes/No): (QSA): DO rating before Moderately Closing/Inactive status: Unsatisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Flood protection 11 11 Other social services 33 33 Sub-national government administration 56 56 Theme Code (as % of total Bank financing) Municipal governance and institution building 33 33 Natural disaster management 11 11 Pollution management and environmental health 11 11 Public expenditure, financial management and procurement 11 11 Social Inclusion 34 34 E. Bank Staff Positions At ICR At Approval Vice President: Jorge F. Calderon Pamela Cox Country Director: Deborah L. Wetzel Deborah L.Wetzel Practice Manager/Manager: Anna Wellenstein Anna Wellenstein Program Team Leader: Josef L. Leitmann Alessandra Campanaro ICR Team Leader: Josef L. Leitmann ICR Primary Author: Cecilia Zanetta F. Results Framework Analysis Program Development Objectives (from Project Appraisal Document) The objective of the proposed operation is to support integrated and sustainable urban development and reduce social vulnerability in Belo Horizonte (Program Document - PD, pp. v, 1). This, in turn, was to be achieved through innovative approaches to urban planning, environmentally sustainable development, social inclusion and participation, and sustainable governance grouped under three policy areas: i) inclusive urban development; ii) green and sustainable practices; and iii) socially and fiscally sustainable urban governance (PD, Annex 2, pp.63-64). Revised Program Development Objectives (if any, as approved by original approving authority) N.A. (a) PDO Indicators Original Formally Target Values Revised Actual Value Achieved at Indicator Baseline Value (from approval Target Completion or Target Years documents) Values Policy Area # 1: Promote inclusive urban development through innovative policies that focus on poor and vulnerable citizens. a) Strengthen land management and planning Number of households benefiting from land regularization between 2009 and 2013 Indicator 1 (Number). Value (quantitative or 8,768 12,155 16,342 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments Exceeded (134% achievement): It includes 9,426 titles in slum areas (“favelas” and (incl. % “vilas”), and 6,916 in irregular areas (“lotes clandestinos”). achievement) Number of new housing starts of formally developed low-income housing units Indicator 2 (Number). Value (quantitative or 1,470 5,302 13,575 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments Exceeded (256% achievement): An additional 2,194 units are currently under construction (incl. % and should be delivered in the first semester of 2015. achievement) Indicator 3 Number of plots transferred by CAIXA (Number). Value (quantitative or 0 1,470 2,325 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments (incl. % Exceeded (158% achievement). achievement) b) Improve living conditions and inclusion of vulnerable and poor citizens. Number of people remaining in social housing developments after two years Indicator 4 (Number). Value (quantitative or 75 85 86 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments (incl. % Achieved (100% achievement). achievement) Indicator 5 Number of families with a dedicated action plan implemented (Number). Value (quantitative or 750 1,500 750 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Not Achieved (50% achievement). Although the number of families did not increase, Comments progress was made in the methodology used to incorporate families. It now incorporates (incl. % objective indicators from the federal system, including the IDF (Índice de Desenvolvimento). achievement) da Família – Family Development Index). Indicator 6 Percentage of female-headed households with a dedicated action plan (%). Value (quantitative or 0 60 68 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments (incl. % Exceeded (113% achievement). achievement) Indicator 7 Number of rehabilitated homes as a result of the program (Number). Value (quantitative or 0 250 24 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Not Achieved (10% achievement): This pilot program for housing rehabilitation did not achieve the results expected, with only 24 houses out of a goal of 250 being rehabilitated. Comments Factors determining underperformance included lack of a clear land titled among recipients, (incl. % lack of interest on the part of contractors to undertake small-scale and dispersed works, achievement) higher than expected rehab costs, and interventions (i.e., housing repairs) that were not part of regular municipal services or programs. c) Strengthen service delivery to all citizens Indicator 8 Number of services rendered at BH Resolve units (Number). Value (quantitative or 94,678 148,500 72,954 qualitative) January 1, 2011 December 31, December 31, 2014 Date achieved 2013 Comments Not Achieved (49% achievement): The target was established based on the planned (incl. % opening of two additional in-person service centers, which has been delayed. Considering achievement) all BH services (in person, phone and Internet), the monthly average was 171,171 in 2014. Indicator 9 Percentage of users rating the services rendered as good or excellent at BH Resolve units (Number). Value (quantitative or 0 90 97.65 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments Exceeded (109% achievement): The rate of satisfied users of BH Resolve (evaluation of (incl. % services rendered as good or excellent) varied between 97-98% throughout 2014. achievement) Policy Area # 2: Support green and sustainable practices d) Improve capacity in mitigation of climate change and green development Indicator 10 Municipal change climate action plan that integrates and benchmarks existing sector- specific initiatives in solid waste, water, energy and urban forestry sectors (Number). Value (quantitative or 0 1 1 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Achieved (100% achievement): The Municipal Climate Change Action Plan has been Comments developed and is being implemented. A committee comprised of the Secretary of (incl. % Environment, the Vice-Mayor, and the Municipal Climate Change Committee, among achievement) others, monitors its implementation. e) Improve capacity in adaptation to climate change (Disaster Risk Management) Consolidated database of: (i) hydrological and climate-related parameters; and (ii) Indicator 11 disaster events and damages (Number). Value (quantitative or 0 1 1 qualitative) January 1, 2011 December 31, December 31, 2013 Date achieved 2013 Comments Achieved (100% achievement): The hydrological database functioned between 2012 and (incl. % 2013, but was not operational between March and December 2014 since the contracts for achievement) maintenance and data transmission expired and were not renewed. Number of monthly performance reports of the early warning system issued Indicator 12 (Number). Value (quantitative or 0 12 12 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments Achieved (100% achievement): Monthly reports on the early warning system are being (incl. % issued regularly, despite data collection stations being offline. Information from cameras, achievement) radar and satellites supplements the system. Policy Area # 3: Enable socially and fiscally sustainable urban governance f) Strengthen urban governance through results based management (RBM) and participatory urban planning Indicator 13 Percentage of results completed yearly according to schedule (%). Value (quantitative or 33.0 70.0 68.5 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Achieved (98% achievement): The BH Metas e Resultados program covered 170 Comments proposals during the assessment period, which are grouped into 12 areas, including social, (incl. % infrastructure, health, housing, and drainage, among others. While the actual percentage is achievement) slightly below the end target, it is considered to have been achieved. Effective demand of projects decided by the community that are included in the Indicator 14 city's multi-year plan (%) Value (quantitative or 0.0 25.0 72.0 qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Comments Exceeded (288% achievement): The participatory regional planning process considered (incl. % some 2,535 proposals and incorporated 1818 of them into the city’s 2013-2016 multi-year achievement) plan. Increase in the number of civil society participants in participatory processes—OP Indicator 15 Digital, OP Regional, PPR (%). Value (quantitative or 10% 15% -75% qualitative) January 1, 2011 December 31, December 5, 2014 Date achieved 2013 Not Achieved: Civil society participation fell 75 percent from 36,457 in 2011 to 8900 in Comments 2013. This is due to an over-optimistic estimation of participation at the time the indicator (incl. % was established of the capacity of the PBH to promote public participation, as well as an achievement) uncharacteristically high baseline in 2011. Indicator 16 Civil servants retirement plan actuarial deficit (Number). Value (quantitative or R$6.933 billion R$6.857 billion R$13.762 billion qualitative) January 1, 2010 December 31, December 5, 2014 Date achieved 2013 Comments Not Achieved. The actuary deficit almost doubled between 2010 and 2014, as opposed to (incl. % decrease. The BH and Bank teams have worked together to determine the reason behind achievement) this disparity which is due to as differences in methodology and underlying assumptions. G. Ratings of Program Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 12/21/2013 Satisfactory Moderately Satisfactory 200.00 2 07/05/2014 Satisfactory Moderately Satisfactory 200.00 3 12/15/2014 Moderately Unsatisfactory Moderately Unsatisfactory 200.00 H. Restructuring (if any) Not Applicable . 1. Program Context, Development Objectives and Design 1.1 Context at Appraisal Development in Belo Horizonte, the state capital of the State of Minas Gerais, has followed two contrasting paths. On the one hand, economic growth and municipal services for the city as a whole have improved. On the other hand, inequality and informal settlements have increased, resulting in a lack of adequate housing and limited access to urban services among the urban poor. Belo Horizonte’s urban divide is illustrated by large inequalities in social and economic indicators in the slums (“vilas” and “favelas”) relative to other parts of the city. Likewise, the incidence of poverty among the roughly half- million people living is the city’s slums (21.5 percent of the total population) was estimated to be 2.5 times that of the city as a whole. Recognizing the urgent need for proactive integrated urban development strategies to address social exclusion and create effective and long-term sustainable governance to benefit all residents, the Municipality of Belo Horizonte (Prefeitura de Belo Horizonte – PBH) adopted ambitious participatory decision-making mechanisms to foster direct citizen inclusion and ownership of budget allocation, policy decisions, and planning. The municipality also embraced state-of-the-art resettlement policies and practices and spearheaded an innovative approach to reach the most vulnerable families by designing a specific development action plan for those families not reached by existing social programs by tailoring to their specific needs. Building upon PBH’s ongoing reforms in housing development, resettlement, social programs, climate change adaptation and mitigation and results-based management, this DPL aimed to advance policy practices and build knowledge. Engagement with the Bank was expected to help the municipality to institutionalize good practices (such as in their results-based management approach) into long-term governance, as well as practices in the housing and social sector that are currently being followed informally. In addition, this operation was expected to help PBH become a “learning city” for other major urban centers in Brazil and worldwide, experimenting at the forefront of urban planning and management ideas and processes. The operation built on the experience gained under a similar World Bank loan to the Municipality of Rio as well as the Bank’s extensive knowledge on housing development, resettlement practices, social programs, climate change adaptation and mitigation, and results-based management, both in Brazil and beyond. The Bank’s partnership with Belo Horizonte was also expected to complement the strong ongoing partnership that the Bank had with the state of Minas Gerais and to advance the Bank’s engagement with third-tier subnational governments. 7 The fiscal frameworks of both Brazil and the Municipality of Belo Horizonte were deemed adequate for the purpose of a DPL operation. At the national level, disappointing economic performance during 2011 and 2012 had been addressed by an array of monetary and fiscal policy interventions, and the country’s overall macroeconomic framework was deemed adequate and sustainable in the medium term. At the municipal level, fiscal and debt trends were also expected to remain sustainable over the medium-term. Fiscal arrangements between the federal government and municipal governments were also deemed adequate and expected to remain largely unchanged over the medium term. 1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved) The operation’s development objective was “to support integrated and sustainable urban development and reduce social vulnerability in Belo Horizonte.” 1 This was to be achieved through innovative approaches to urban planning, environmentally sustainable development, social inclusion and participation, and sustainable governance grouped under three policy areas: i) inclusive urban development; ii) green and sustainable practices; and iii) socially and fiscally sustainable urban governance. 2 Specific development objectives were defined for each policy area as well as a set of Key Performance Indicators (KPIs). Table 1 – Operation’s Project Development Objectives (PDOs) and Key Performance Indicators (KPIs) Policy Area 1: Inclusive urban development PDO 1 - Promote inclusive urban development through innovative policies that focus on poor and vulnerable citizens. a) Strengthen land management and planning - KPI 1: Number of households benefiting from land regularization between 2009 and 2013 (Number). - KPI 2: Number of new housing starts of formally developed low-income housing units (Number). - KPI 3: Number of plots transferred by CAIXA (Number). b) Improve living conditions and inclusion of vulnerable and poor citizens. - KPI 4: Number of people remaining in social housing developments after two years (Number). - KPI 5: Number of families with a dedicated action plan implemented (Number). - KPI 6: Percentage of female-headed households with a dedicated action plan (%). - KPI 7: Number of rehabilitated homes as a result of the program (Number). c) Strengthen service delivery to all citizens - KPI 8: Number of services rendered at BH Resolve units (Number). - KPI 9: Percentage of users rating the services rendered as good or excellent at BH Resolve units (Number). Policy Area 2: Green and sustainable practices—i.e., “Green growth” PDO 2 - Support green and sustainable practices d) Improve capacity in mitigation of climate change and green development - KPI 10: Municipal change climate action plan that integrates and benchmarks existing sector-specific initiatives in solid waste, water, energy and urban forestry sectors (Number). e) Improve capacity in adaptation to climate change (Disaster Risk Management) - KPI 11: Consolidated database of: (i) hydrological and climate-related parameters; and (ii) disaster events and damages (Number). - KPI 12: Number of monthly performance reports of the early warning system issued (Number). Policy Area 3: Socially and fiscally sustainable urban governance 1 Project Document - PD, pp. v,1. The Loan Agreement does not include a definition of the operation’s PDO. Instead, it focuses on the actions taken under the Program (i.e., the so-called Prior Actions in the PD). 2 The definitions of the three policy areas are derived from the Policy Matrix (PD, Annex 2, pp.63-64). 8 PDO 3 - Enable socially and fiscally sustainable urban governance f) Strengthen urban governance through results-based management (RBM) and participatory urban planning - KPI 13: Percentage of results completed yearly according to schedule (%). - KPI 14: Effective demand of projects decided by the community that are included in the city's multi-year plan (%). - KPI 15: Increase in the number of civil society participants in participatory processes -- OP Digital, OP Regional, PPR (%). f) Strengthen long-term fiscal sustainability - KPI 16: Civil servants retirement plan actuarial deficit (Number). For the purpose of the ICR, the operation is evaluated against the PDOs corresponding to each of the policy areas and the corresponding Key Performance Indicators (KPIs) defined for the individual policy actions within each policy area (see Table 2). Together, the three policy-level PDOs provide an equivalent but more detailed operational definition of the operation’s overall PDO. Table 2 – Operation’s Overall and Policy-level PDOs Operation’s Correspondence with policy-level PDOs Overall PDO Multi-dimensional approach to urban development (i.e., equity, environmental, Integrated urban physical, social, and fiscal) integrated in the same territory (i.e., the Municipality development of Belo Horizonte). PDO 2 - Support green and sustainable practices (also defined as Sustainable urban environmentally sustainable). 3 development PDO 3. Enable socially and fiscally sustainable urban governance Reduced social PDO 1 - Promote inclusive urban development through innovative policies that vulnerability focus on poor and vulnerable citizens. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and Reasons/Justification Not Applicable 1.4 Original Policy Areas Supported by the Program (as approved): Policy Area 1: Inclusive urban development Within this policy area, the operation focused on three strategic areas of intervention: Land use planning: The operation supported: i) the incorporation of several innovative instruments in matters of land use, management and urban planning to reduce social exclusion; and (b) the expansion of private sector provision of low-income housing. Housing and social integration: The operation supported: i) the launching of a program to identify the most vulnerable families in PBH territory and the development of a vulnerable family-plan with tailored assistance; and ii) enhancing resident ownership in low-income housing program by developing and implementing a model for social inclusion and sustainable livelihoods. Urban inclusion through service provision: The operation supported: i) enhanced service delivery through the establishment of a functioning single point of access for comprehensive delivery of all municipal services to the population. Policy Area 2: Green and sustainable practices—i.e., “Green growth Within this policy area, the operation focused on two strategic areas of intervention: Mitigation: The operation supported: i) the strengthening of PBH’s legal and institutional framework for climate change mitigation and the promotion of sustainable growth policies. Adaptation: The operation supported: i) the establishment of a disaster management strategy (the Plano Diretor da Defesa Civil) and the implementation of a monitoring and alert system for high rainfall events in critical areas of PBH territory. 3 See footnote 1, PD, p.1. 9 Policy Area 3 – Socially and fiscally sustainable urban governance Within this policy area, the operation focused on two strategic areas of intervention: Results-based management and participatory approach: The operation supported: i) the establishment of a results-based management model; and ii) the broadening of participatory mechanisms for budget execution. Long-term fiscal reforms: The operation supported: i) reform of PBH civil servant retirement system to improve long-term fiscal sustainability. 1.5 Revised Policy Areas (if applicable) Not Applicable 1.6 Other significant changes Not Applicable 2. Key Factors Affecting Implementation and Outcomes 2.1 Program Performance (supported by a table derived from a policy matrix): Expected Actual Release Tranche # Amount Release Release Date Date Tranche 1 US$200M December 2012 12/12/2013 (1) Regular Tranche 1 (Single Tranche) Policy conditions as stated in the Loan Agreement Status The PBH has (a) strengthened its urban legislation by incorporating several innovative instruments in matters of land use, management and urban planning to reduce social exclusion; and (b) supported the expansion of private sector Met provision of low-income housing to its population as evidenced by the Borrower’s Land Use law (Law No. 7165/1996 as amended by Law 9959/2010) and Land Donation Law (Law No. 9814/2010) The PBH has enhanced resident ownership in its low-income housing program by developing and implementing a model for social inclusion and sustainable Met livelihoods, as evidenced by Borrower’s Decree No. 14.641/2011. The PBH has launched a program to identify the most vulnerable families in its territory and has enabled the development of a vulnerable family-dedicated plan Met with tailored assistance, as evidenced by Borrower’s Decree No. 14.878/2012. The PBH has improved its service delivery by establishing a functioning single point of access for comprehensive delivery of all municipal services to the Met population, as evidenced by Borrower’s Law No. 10.101/2011 and by the Borrower’s Decree No. 14.600/2011. PBH has strengthened its legal and institutional framework for climate change mitigation and has promoted sustainable growth policies, as evidenced by Met Borrower’s Climate Change Law (Law No. 10.175/2011) and by the Borrower’s Decree No. 14.794/2011. The PBH has established a disaster management strategy (i.e., the Plano Diretor da Defesa Civil) and has put into operation a monitoring and alert system for high Met rainfall events in critical areas of its territory, as evidenced by Borrower’s Decree No. 14.879/2012. The PBH has promoted long-term sustainable city development by establishing a results-based management model for long-term governance, as evidenced by Met Borrower’s Law No. 10.101//2011 and the Borrower’s Decree No. 14.791/2012. The PBH has strengthened urban governance by broadening participatory mechanisms for budget execution, as evidenced by Borrower’s Decrees No. Met 14.724/2011 and 14.607/2011. The PBH has improved long-term fiscal sustainability by reforming its civil Met servant retirement system, as evidenced by Borrower’s Law N. 10.362/2011. 10 2.2 Major Factors Affecting Implementation: Major Factors Affecting Implementation Delayed Project Approval: Although preparation began in Fall 2011, the operation was approved almost two years later (June 14, 2013) due to several reasons, including significant delays in the process of internal clearances within the client administration, which took approximately one year, as well as delays in obtaining approval at the federal level. Approval by the Senate took an additional six months (December 3, 2013), after which the loan was signed and the operation was made effective (December 13, 2013). No slippage or reversal of prior actions occurred between 2011 and 2013 and municipal authorities restated the validity of the prior actions identified at appraisal. Thus, the operation’s original design was not altered, except for the extension of project targets from 2012 to 2013, as well as the closing date from June 2013 to December 2014 to reflect the delay in loan approval. Tenuous implementation environment: Implementation took place during a somewhat fragile macroeconomic environment, as the country’s economic conditions continued to weaken during 2013- 2014, with a GDP growth of 2.5 percent in 2013 and an estimated 0.1 percent for 2014. 4 Although the slowdown did not translate into a weaker labor market (i.e., unemployment was still running at historically low rates of around 5 percent), public discontent manifested openly in mid-2013, with massive protests in major cities around Brazil, including Belo Horizonte, against perceived high levels of spending for the preparation of the World Cup. Internal changes within BH: Changes within the municipal administration, including the change in the Secretary of Finance and other top officials, may have affected implementation capacity and the relative priority of the various reform efforts, such as the emphasis on large-scale participatory processes. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization: Monitoring and Evaluation (M&E) Design Overall, the operation’s monitoring was based on the M&E system embedded in the operation’s Policy Matrix consisting of 16 KPIs, many of which were already collected by the municipality as part of its own results-based M&E system (i.e., BH Metas e Resultados). For the remaining policy actions, the indicators were constructed based on existing primary data to ensure their timely availability during supervision. In general, KPIs were linked to the policies being supported under the operation (see Section 3.1 – Relevance of Design). Some significant weaknesses, however, were observed, as follows:  Some indicators focused on outputs rather than outcomes: For example, although important steps to build capacity, indicators for improved capacity in adaptation to climate change (database and monthly progress reports) are more a measure of outputs than outcomes.  Targets were not updated despite delays in approval: Although the operation’s approval experienced substantial delays, the KPI baselines and targets were not updated. The only measure that was adopted was to extend the date of expected target achievement one year (from 2012 to 2013) to reflect the corresponding adjustment in the closing date (from June 2013 to December 2014). No technical rationale was offered regarding the causal link between the operation’s delayed approval and its implicit impact on implementation progress. Likewise, since progress toward KIP achievement was not monitored during the period between the operation’s approval and its effectiveness, the relevance of individual indicators and/or the feasibility of attaining the anticipated targets was not reassessed, which constituted a missed opportunity.  Some targets were overly optimistic. These include the targets corresponding to KPI 7 (i.e., Number of rehabilitated homes under Família Cidadã, Cidade Solidária Program) was overly optimistic, particularly in view of the PBH’s lack of experience in this type of intervention involving small one-of-a- kind works housing repairs.  Some targets did not fully capture the corresponding PDO: For example, KPI 8 (i.e., Number of services rendered at BH Resolve units) focuses too narrowly on the services provided in person at the BH Resolve attention centers. Including services provided under all modalities used by BH Resolve (i.e., in person, telephone, and online) would have better captured the corresponding PDO of strengthening service delivery to all citizens. Moreover, this formulation would have also captured the ongoing shift from in-person to online service provision that is being fueled by rapid technological change and increased access to technology for the overall population.  Some targets lacked a sound technical foundation: In the case of KPI 16, (i.e., reform of the pension system), a more in-depth technical analysis, including projections of the future stream of pension liabilities under various assumptions and their impact on PBH finances, would have been required. The PD included only one paragraph focusing on the reform of the pension system (PD, p. 37) with a superficial discussion of the reform. While a sentence is included stating that the PBH’s would be contributing more money to the system during a transitional period, no estimates of such 4 International Monetary Fund, World Economic Outlook Update, January 2015, Washington, DC. 11 contribution or the pension liabilities were presented. In view of the large discrepancy between the anticipated target (i.e., equivalent to a 1 percent reduction in the pension liabilities between 2011 and 2013) and actual performance (i.e., equivalent to a 98 percent increase during the same period) and the inability of PBH to provide a satisfactory technical explanation reinforces the conclusion that the technical analysis behind this target was weak. Monitoring and Evaluation (M&E) Implementation The PBH Secretariat of Finance (SMF) was responsible for coordinating activities and reporting progress by other sector departments (i.e., urban development, housing, planning, budgetary planning, public sector management, social development, disaster risk management and environment). A Project Implementation Committee constituted by representatives from the various sector departments was responsible for monitoring implementation progress. The operation also provided support to a number of evaluation activities to help generate an evidence- based policymaking culture in BHP and to capitalize on the opportunity for systematic learning to benefit BH as well as other municipalities in Brazil. The major initiatives for evaluation activities were conducted in the social development sector, including a gender study focusing on access to social protection, health and education. Monitoring and Evaluation (M&E) Utilization The Bank regularly monitored progress under the DPL series through periodic Bank supervision missions. A total of three supervision missions were conducted during the operation’s lifetime. Progress toward the achievement of policy actions was closely monitored by the various sector specialists and reported in the Aide Memoires and Implementation Status Reports (ISRs). However, delays in data reporting for KPIs 15 and 16 prevented the Bank team from identifying shortcomings in the operation’s progress toward PDO achievement until almost closing. In addition, as reported by PBH officials and professional staff during the ICR initiation mission (December 2014), the M&E system proved useful as it served to foster the exchange of information both across the various sector departments and to give the Vice-Mayor’s Office the opportunity to have periodic, comprehensive updates on the progress being made in the policy areas supported under the operation, which were key priorities of the administration. 2.4 Expected Next Phase/Follow-up Operation (if any): Not Applicable 3. Assessment of Outcomes 3.1 Relevance of Objectives and Design Relevance of Objectives: High This operation’s objectives were and continue to be highly relevant in relation to the PBH’s priorities and the strategic objectives guiding the collaboration between Brazil and the Bank, applying them at the sub-national level. In the long term, the PBH’s strategic priorities are reflected in its BH Strategic Plan 2030. 5 In the short and medium term, the PBH’s priorities are reflected in the newly instituted BH Goals and Results Program (BH Metas e Resultados - BHMR), 6 a results-based strategic management program that operationalizes municipal policies during an administrative cycle (2009-2012; 2013- 2016). The strategic priorities being supported by the Bank are reflected in the current Country Partnership Strategy (CPS 2012-2015), 7 which was also effective at the time of the operation’s approval. This operation effectively translates the Brazil CPS 2012- 2015’s overarching objective of promoting faster, more inclusive and more environmentally sustainable growth under continued macroeconomic stability at the sub- national level. Specifically: 5 https://bhmetaseresultados.pbh.gov.br/content/planejamento-estratégico-2030 6 https://bhmetaseresultados.pbh.gov.br/content/bh-metas-e-resultados 7 World Bank (2011). 12 Relevance of Objectives - High PDO 1 - Promote inclusive urban • High relevance with respect to the Strategic Objective 2 of the development through innovative Bank’s CPS 2012-2015—i.e., enhance service provision to policies that focus on poor and poorer segments of the population—and, more specifically, vulnerable citizens. Result Area 2.4—i.e., expanded affordable housing and improved living conditions for low-income and vulnerable groups. • High relevance with respect to PBH 2030 long-term Strategic Objective 3—i.e., provide social environment that encourages fun and healthy relationships between people. • High relevance with respect to BHMR’s Result Area 7—i.e., “City with lively neighborhoods”—that has the objective of guaranteeing the right to live with dignity and to live well through housing upgrading, among other interventions. PDO 2 - Support green and • High relevance with respect to the Strategic Objective 4 of the sustainable practices. Bank’s CPS 2012-2015—i.e., improve sustainable natural resource management and climate resilience—and, more specifically, Result Areas 4.3—i.e., improved environmental management, biodiversity conservation and climate change mitigation—and 4.4—i.e., more effective disaster risk management. • High relevance with respect to PBH 2030 long-term Strategic Objective 3—i.e., promote environmental sustainability resulting from, among others, preservation of green areas, restoration of degraded areas, reducing emissions of pollutants, energy efficiency and good capacity to prevent, mitigate and adapt in the face of adverse events large scale. • High relevance with respect to BHMR’s Result Area 9—i.e., “Sustainable city”—that has the objective of responsible “green” urban development. PDO 3 - Enable socially and • High relevance with respect to the Strategic Objective 1 of the fiscally sustainable urban Bank’s CPS 2012-2015—i.e., increase the efficiency of public governance. and private investments—and, more specifically, Result Area 1.1—i.e., improved fiscal and public sector management. • High relevance with respect to PBH 2030 long-term Strategic Objective 5—i.e., consolidate political and institutional environment of quality, based in the metropolitan integration and democratic and participatory public management. • High relevance with respect to BHMR’s Result Area 8—i.e., “Shared city”—that has the objective of enhancing the role of citizenry in city management through an array of participatory mechanisms. Relevance of Design: Modest Overall, the relevance of the operation’s design is considered to be Modest. Despite the relevancy of the individual PDOs, the operation appears to have been overly ambitious, providing support to a wide spectrum of reforms, all of which exhibited significant levels of complexity. A more focused approach would have undoubtedly enhanced the operation’s likelihood of success, as the policy areas underlying each individual PDO presented enough challenges to potentially be the sole focus of an operation (i.e., housing, land tenure, urban development, delivery of social services, and customer service under PDO 1; mitigation and adaptation to climate change under PDO 2; and urban governance, urban management, and pension reform under PDO 3). PDO 3- Enable socially and fiscally sustainable urban governance, appears to be less cohesive than the other two PDOs and not sufficiently connected to the rest of the project. Individual policy areas were substantially or highly relevant in the context of the corresponding PDO. However, pension reform was considered to have little relevance in 13 the context of an integrated multi-sector operation, as the unusual technical complexity and political fragility of the issue added undue complexity. Instead, this reform area would have merited dedicated support from a highly specialized team. Relevance of Design PDO 1 - Promote inclusive urban development through innovative policies that focus on poor and vulnerable citizens. a) Strengthen land management and planning: High relevance, as these are core actions that local governments can take to increase the supply of land, which typically is a major bottleneck in the provision of affordable housing. This is particularly relevant in the case of PBH given the municipality’s limited potential for territorial expansion potential due to its geography. b) Improve living conditions and inclusion of vulnerable and poor citizens: High relevance, as improving living conditions of the poor, including access to housing and services is a pre-requisite for expanded access to opportunities that can ultimately lead to genuine inclusion. c) Strengthen service delivery to all citizens: Substantial relevance, as providing centralized, seamless access to information and non-emergency municipal services to all citizens-including the poor-- is an important step toward inclusiveness. 8 PDO 2 - Support green and sustainable practices d) Improve capacity in mitigation of climate change and green development: High relevance, as capacity in climate change mitigation at the local s a necessary precondition for the effective design and implementation of environmentally sustainable practices. e) Improve capacity in adaptation to climate change: High relevance, as capacity in adaptation to climate change, disaster risk management in particular at the local s a necessary precondition for the effective design and implementation of environmentally sustainable practices. PDO 3 - Enable socially and fiscally sustainable urban governance f) Strengthen urban governance through results-based management and participatory urban planning: Substantial relevancy, as results-based management and public participation can enhance efficiency, transparency and accountability as well as greater citizens’ voice in the allocation of municipal resources. g) Strengthen long-term fiscal sustainability: Negligible relevancy, as the unusual technical complexity and political fragility of pension reform would have merited dedicated support from a highly specialized team rather than integration within a multi-sector operation. The operation’s Results Framework exhibited several weaknesses, as described in detail in Section 2.3. Although there were some exceptions, KPIs were largely relevant in the context of the specific policy areas. 9 3.2 Achievement of Program Development Objectives PDO achievement has been mixed, reflecting the relative priority given to individual policy areas by municipal authorities and the leadership and implementation capacity of individual sector departments. Progress within each Policy Area and corresponding PDOs is summarized below. (For a detailed description of policy outcomes, see Annex 6). 8 Relevance is not considered to be High as no special provisions were taken in the framework of BH Resolve to attend to the particular information needs of the most vulnerable sectors of the population, which is the main focus of PDO 1. 9 For example, KPI 7 - Number of rehabilitated homes as a result of the program, had only modest relevance, as the small magnitude of the pilot program, with a target of 250 rehabilitated units, did not seem to warrant its inclusion in the Policy Matrix, except as a proof of concept. Likewise, KPI 11 and 12 were also modest in relevance given their output-based nature. 14 PDO 1 - Promote inclusive urban development through innovative policies that focus on poor and vulnerable citizens. Efficacy: Substantial a) Strengthen land management and planning – High The PBH has further strengthened its urban legislation by incorporating several innovative instruments in matters of land use, management and urban planning to reduce social exclusion and enhance access to secured land among the poor. The main outcomes can be summarized as follows: Enhanced regulatory system for land use aimed at expanding land supply for low-income housing • Passage of the Land Parceling, Occupation, and Use Law (Law No. 7165/1996 as amended by Law 9959/2010): The law incorporates new urban instruments (previously introduced in the City Statute) to the management of the municipal territory, including the Special Areas of Social Interest (AEIS), the Compulsory Parceling, Building or Use (PEUC), and the Progressive Property Tax (IPTU Progressivo). The 2010 law provided PBH with greater capacity and flexibility in acquiring land to implement social housing projects through such programs as the federal Minha Casa Minha Vida (MCMV) and the municipal Vila Viva. • Passage of Public AEIS 1 (Law No. 10.628 de 05/07/2013) and Private AEIS 1 (Law No. 10.716 de 20/01/2014): The subsequent approval of complementary legislation, as well as ongoing preparation of the AEIS 2 legislation that incorporates the lessons learned from the implementation of its predecessors signals PBH’s continuous commitment toward the modernization of the land use regulatory framework. The preparation of this legislation is been done with wide public sector participation in the framework of the IV Municipal Conference of Urban Policies, held in 2014. • Passage of the Land Donation Law (Law No. 9814/2010): This legislation formalizes the process of donating municipal public land for building low-income housing under the MCMV federal program; thus, addressing the issue of lack of affordable land for construction of low- income housing. Expanded access to secured land and housing among the urban poor These newly adopted instruments of land use planning, as well as an acceleration in the municipality’s land regularization activities, have proven to be significant means for increasing access to secured land and housing among the poor. Specifically: KPI 1 – Between 2009 and 2014, a total of 16,342 households benefited from land regularization. (2013 target exceeded by 34 percent.) • The beneficiaries included 9,426 low-income households living in slum areas (“favelas” and “vilas”) that benefited from the slum land tenure regularization program administered by PBH’s Urban and Housing Company (URBEL) and 6,916 low-income households living in illegally occupied plots (“lotes clandestinos”) that benefited from the land regularization Cidade Legal program. 10 • The average annual outputs under these two programs have increased substantially. In the case of URBEL, an average of 683 households per year benefited from the program during 1997-2008 compared to 1,571 during 2009-2014—equivalent to a 130 percent increase. Likewise, in the case of Cidade Legal, the annual number of land tracks that underwent regularization increased from an annual average of 258 between 1997-2008 to 641 between 2009-2013—equivalent to a 149 percent increase. 11 KPI 2 – Between 2011 and 2014, there were 13,575 new housing starts of formally developed low- income housing units (2013 target was exceeded by 156 percent). • An additional 2,194 units are currently under construction and should be delivered in the first semester of 2015. KPI 3 – Between 2011 and 2014, there were 2,335 plots transferred by CAIXA. (2013 target exceeded by 58 percent.) 10 The Cidade Legal Program is a joint effort of the PBH Municipal Secretariat of Urban Regulations (SMARU) and Urban Inclusion Unit (GEIUR). Both Cidade Legal and URBEL titling activities in slum areas are targeted to low-income households (with a household income less than 3 times the minimum wage). 11 Note that land track is not equivalent to number of beneficiaries. However, it is a more appropriate unit of comparison, as the regularization of each track of urban land involves the same administrative procedures, including diagnostic, cadastral maps, urban development project, collection of occupancy/ownership data and documentation, registration of individual land lots, etc.) 15 • This indicator considered the number of housing units with a signed contract between beneficiary and CAIXA in the program MCMV – Class 1 (family income up to three minimal wages). b) Improve living conditions and inclusion of vulnerable and poor citizens – Substantial The PBH has designed and implemented two new programs as follows: • The Pré and Pós Morar Program seeks to enhance resident ownership in PBH’s low-income housing programs by developing and implementing a model for social inclusion and sustainable livelihood. It was at the root of the federal decree on resettlement. • The Família Cidadã Cidade Solidária program aims to identify the most vulnerable families in PBH territory and provide them with a vulnerable family-dedicated plan with tailored assistance. It tested a new approach to slum upgrading which was taken up by the MCMV program. KPI 4 – The percentage of people remaining in social housing developments after two years increased from 75 to 86 percent. (2013 target achieved.) • In order to foment the permanence of the families in social housing developments, the PBH worked to improve the social services network in those territories, having published a municipal decree in 2011 (14.631) launching the Pré and Pós Morar (PPM) programs with the objective to facilitate adaptation and the sense of ownership over the houses and communal spaces within new settlements. KPI 5 – A total of 750 families have a dedicated action plan implemented. (50 percent achievement of 2013 target.) • Although the number of families did not increase, progress was made in the methodology used to incorporate families. It now incorporates objective indicators from the federal system, including the IDF (Índice de Desenvolvimento da Família – Family Development Index). KPI 6 – Sixty percent of households with a dedicated action plan are female-headed households (2013 target was exceeded by 13 percent). • A total of 510 of the 750 households with a dedicated action plan are female-headed households. KPI 7 – A total of 24 housing units were rehabilitated homes as a result of the program. (10 percent achievement of 2013 target). • This pilot program focused on the rehabilitation of housing for those families with a dedicated action plan with inadequate housing. A total 250 housing units had been identified as requiring rehabilitation. • Factors determining underperformance included lack of a clear land titled among recipients, lack of interest on the part of contractors to undertake small-scale and dispersed works, higher-than-expected rehab costs, and interventions (i.e., housing repairs) that were not part of regular municipal services or programs. • This indicator is not taken heavily into consideration due to its modest relevance. c) Strengthen service delivery to all citizens – Modest The PBH improved its service delivery by establishing a functioning single point of access for comprehensive delivery of all municipal services, known as BH Resolve. KPI 8 – The number of services rendered at physical BH Resolve units decreased from a monthly average of 99,322 in 2011 to 72,954 in 2014. (62 percent achievement of 2013 target.) • The indicator target was established based on the planned opening of two additional in-person service centers; however, these centers are now not expected to open until 2016 due to delays in determining the optimal location. • In addition, BH Resolve also provides customer service via telephone and the Internet, which may have resulted in some users switching away from in-person services. • When all service modalities are taken into consideration (i.e., in person, phone, Internet), on average there were 171,171 services per month rendered through BH Resolve in 2004, which constitutes an 11 percent decrease with respect to 2011. KPI 9 – 97.13 percent of users rate the services rendered as good or excellent at physical BH Resolve units during 2014 (target exceeded by 8 percent) • The rate of satisfied users of physical BH Resolve (evaluation of services rendered as good or excellent) oscillated between 97-98 percent throughout 2014. • The decrease in service provision under BH Resolve—particularly in view of the high ratings of the system given by its users—may reflect a decrease in demand, which, in turn, may reflect more efficient service delivery on the part on BH (for example, fewer billing errors, shorter connection times, fewer interruptions in service provision). A more in-depth analysis of the reasons behind the fall in the demand for services seems appropriate. PDO 2 – Support green and sustainable practices. Efficacy: Substantial d) Improve capacity in mitigation of climate change and green development: Substantial PBH has been at the forefront in the adoption of innovative municipal practices in the area of climate change mitigation, including the establishment of the Municipal Committee on Climate Change and Eco-efficiency (CMMCE) in 2006, composed of government and civil society representatives, with 16 the aim of linking public policies and private initiatives, reducing greenhouse gas emissions, and raising population awareness of environmental issues. Specific achievements under the operation included: Enhanced regulatory system for climate change mitigation • The PBH strengthened its legal and institutional framework for climate change mitigation by promulgating Law No. 10.175/11 in May 2011 instituting a “Municipal Policy on Mitigating the Effects of Climate Change.” KPI 10 – Municipal Climate Change Action Plan that integrates and benchmarks existing sector- specific initiatives in solid waste, water, energy and urban forestry sectors with the goal of promoting efficiencies and sustainability. • PBH has operationalized its climate change policy through the elaboration of a Municipal Climate Change Plan. (Target achieved.) • The Municipal Climate Change Plan has been adopted and is being implemented. Its implementation is monitored by the CMMCE • Belo Horizonte is one of the three Brazilian capitals to have a climate change plan and the second to have a reduction plan. The first plan was made by Rio de Janeiro but PBH’s is the most complete because it is the only one with an inventory of emissions based on a historical series of 10 years. Thus, it is being a model to other cities in Brazil. • PBH’s strategic planning includes the goal of reducing the municipality’s emissions by 20 percent by 2030. Other actions in climate change mitigation • PBH introduced the Environmental Sustainability Certification Program, which seeks to promote technologies that contribute to the reduction of greenhouse gas emissions in the city. • As the venue for the 2014 World Cup, PBH also assumed the compromise to achieve the targets set by FIFA’s Sustainable Cup Program, which was also instituted for the World Cup events held in Germany and South Africa. • With the Bank’s support, PBH was the first Latin American city to conduct a Rapid Municipal Energy Assessment (Avaliação Rápida de Energia na Cidade – TRACE) to evaluate BH energy efficiency potential. TRACE served to compare PBH energy consumption with that of 60 cities of the same size using 28 key performance indicators; thus, allowing municipal authorities to identify areas of improvement. TRACE results were a critical input in the crafting of the Energy axis within the PBH Climate Change Action Plan. • In January 2011, PBH began producing electricity from biogas derived from a neighborhood (Jardim Filadélfia), thus, transforming a major source of pollution and global warming into a source of revenue and energy. e. Improve capacity in adaptation to climate change – Substantial • The PBH established a disaster management strategy. It has also put into operation a monitoring and alert system for high rainfall events in critical areas of its territory. This was carried out through the establishment of the Strategic Plan of the Civil Defense, the creation of a Contingency Plan for an early alert system, and ongoing activity reports from the system. Annual contingency plans have continued to be prepared under the guidance of an overall sectorial strategy. • In addition, PBH has undertaken a series of civil defense activities targeting persons who live or work in areas identified as being flood prone, such as posting educational and warning signs providing guidance and information on flood risks and training the Rain Alert Units (Núcleos de Alerta de Chuvas – NACs), composed of resident or worker representatives in flood prone areas, who act as voluntary civil defense agents in the event of flood-related risks. • Working in partnership with the state and federal governments, PBH has implemented a significant number of works aimed at enhancing safety conditions for the population and mitigating disaster risk, with over R$600 million being channeled toward the construction of retention basins, the installation of drainage systems, the treatment and cleaning of streams, the establishment of new rainwater networks, and the upgrading of roads and avenues. KPI 11 – Consolidated database of: (i) hydrological and climate-related parameters; and (ii) disaster events and damages. • A hydro-climatological network was also instituted for purposes of flood alerts and hydrological monitoring. The hydro-climatological network is composed largely of stations to monitor the water levels of streams, stations to measure rainwater, and climatological stations that, in addition to measuring rainfall, measure the humidity relative to the air, wind, solar radiation, and atmospheric pressure. • However, although the hydrological database was up and running between 2012 and 2013, it has not functioned between March and December 2014, when the contracts with the service provider for maintenance and data transmission had expired and were not renewed. The contracts have since been renewed and the database is once again operational. (Sensu strictu, target (i) was achieved, as the reference year was 2013.) • As a result of contract negotiations, the one-year gap in data collection will be reconstructed under the newly-signed service contract utilizing data that have been recorded at each station. KPI 12 – Number of monthly performance reports of the early warning system issued. 17 •The early alert and monitoring system was not impaired by the interruption of the contract. Monthly reports (12 per year) on the early warning system are issued, despite data collection stations for precipitation and water level being offline. Information from cameras, radar and satellites supplements the system. (Target achieved.) PDO 3 – Enable socially and fiscally sustainable urban governance. Efficacy: Negligible to Moderate f) Strengthen urban governance through results-based management and participatory urban planning – Modest Belo Horizonte has a strong tradition of sound governance, as illustrated by its ranking as the second top Brazilian in terms of governance. 12 With the operation’s support, efforts to further enhance PBH governance, most notably in the following two areas: Results-based management • The PBH has promoted long-term sustainable municipal management and governance by establishing an innovative results-based management model (BH Metas e Resultados). • Established in 2009, BH Metas e Resultados constitutes a modern management tool aimed at the permanent evaluation of the results of public policies, programs and projects included in the multi-year government action plan. • Law No. 10.101 of January 14, 2011 established the Executive Coordination of the BH Metas e Resultados Program, which is responsible for the integrated coordination its implementation and M&E. This constitutes a significant qualitative improvement with respect the previous M&E modality, which was done at the departmental level. • The first phase corresponded to the 2009-2012 period, coinciding with the municipal mandate of one administration. The second phase covers the 2013-2016 period. • The general public has online access to BH Metas e Resultados, which promotes public control, transparency and accountability. KPI 13 – 68.5 percent of targets and results of the 2009-2012 phase were achieved. (98 percent achievement of target, which is considered achieved.) Participatory urban planning • The PBH has continued to strengthen its urban governance by further expanding participatory mechanisms by, among others, instituting “Shared Management” in 40 territorial units (Decree 14724/2011), and institutionalizing the Participatory Planning Committee (Decree 14607/2011). KPI 14 – 72 percent of the projects decided or proposed by the community were included in the city’s multi-year plan. (Target exceeded by 188 percent). • Participation activities carried out as part of the participatory regional process that ended in June 2012 resulted in 2,535 proposals from the territories. These projects were reviewed by the PBH sector departments and utilized as inputs in the budgetary planning. A total of 1818 of the proposed projects were incorporated into the city’s 2013-2016 multi-year plan. KPI 15 – Civil society participation fell 75 percent from 2011 to 2013. (Target not achieved.) • Civil society participation fell from 36,457 participants in 2011 to 8,900 in 2013. This is partly due to an uncharacteristically high baseline in 2011, when Participatory Regional Planning was first conducted. Other contributing factors include an over-optimistic estimation of participation at the time the indicator was established of the capacity of the PBH to promote public participation, as well as internal changes within the municipal administration in 2013, which may have lessened the emphasis on large-scale participation processes. • BH is exploring alternative forms of citizen involvement, such as online discussion forums and an education program toward to children. g. Strengthen long-term fiscal sustainability: Negligible • The operation supported PBH civil service pension reform with the aim of improving the long- term fiscal sustainability of the municipality. • The reform was embodied in Law 10.362/2011 and foresaw the division of the beneficiaries in two groups – the so-called “segregação de massas”. The first group formed by all civil servants who entered civil service before 2011 are paid by Financial Fund (FUFIN), which is a “pay as you go” type of fund. This fund is formed by the employee and employer contribution of these servants and the municipality agreed to fund the projected cash insufficiencies until the last benefit is paid. The second group is formed by all civil servants who entered civil service starting in 2012 and whose benefits will be paid by the newly instituted pension fund. This fund was established as a capitalization fund. • The reform can be expected to have improved the fiscal sustainability of the municipality because the new fund was established under more modern rules and legislation. Its capitalization characteristic ensures that benefits will not be paid in excess of its assets and foresees mechanisms for addressing actuarial imbalances sharing the burden between the 12 Ranking by Delta Economics & Finance (http://deltaefrankings.com/cidades/resultados/). 18 civil servants and the municipality. It has also introduced sound governance mechanisms such as a board of “shareholders” and a fiscal committee formed by the municipality and the plan participants, an investment committee and a formal investment policy. In addition, other regulatory issues were addressed, making the municipality fully compliant with the Federal Legislation governing the pension regime of civil servants. • It should also be noted that such reform was supported and aligned with the Federal Government policy for promoting fiscal sustainability in pension regimes for civil servants. Supporting such aligned policy is in accordance with the current Bank’s CPS, which states: “The Federal Government is also interested in the Bank‘s support to sub-national Governments as a way of enhancing the implementation of national policies, ranging from the fiscal responsibility framework to strategic social and infrastructure investment programs.” Since the Bank has been supporting the Federal Government in the areas of policy formulation and supervision of subnational civil servants pension regime through technical assistance loans (PARSEP I and PARSEP II). Therefore, by supporting such policy action through the DPL, the operation was further contributing to the effectiveness of another Bank operation. KPI 16 – The civil servant retirement plan actuarial deficit increased from R$6.933 billion in 2010 to R$13.762 billion between 2010 and 2014. (Target not achieved.) • Despite the merit of the policy action supported and the successful implementation of the reform, the target for the indicator was not achieved. The target (R$6.857 billion) foresaw a small improvement from the baseline situation (R$6.933 billion in 2010), but the actual figure (R$ 13.762 billion) missed the target by a sizeable margin. • Together with the municipality, the Bank team investigated possible reasons for the observed disparity, including differences in the methodology used to calculate the debt, data sources and actuarial parameters. • The target was jointly discussed and agreed upon with the municipality counterparts, including BH Deputy for Pensions, during the last preparation mission. • It should also be noted that the indicator is measuring the actuarial deficit of both funds (FUFIN and BHPREV). In order do that, the FUFIN is treated as a capitalization fund. The municipality had expressed some reservations in calling this an actuarial deficit, which was acknowledged by the Bank since preparation, with the team deciding to maintain the indicator because it believed that it was the most comprehensive measure of the fiscal situation of the pension regime. • There are some differences in the characteristics of each fund: the real interest rate (6% in 2010 and 4.5% in 2014 for BHPREV and 0% for FUFIN in 2010); assumptions regarding the hiring of new employees and the family composition of pension plan participants; and the base value of the contributions paid by the municipality. The “mass segregation” carried out by the municipality changes the way that the calculations are carried out and reported. The client was asked to carry out the 2014 deficit calculation using the same methodology as in 2010, However, given the distinct characteristics of the two funds, it is not possible to assert that the 2010 and 2014 figures are directly comparable. 3.4Justification of Overall Outcome Rating Rating: Moderately Unsatisfactory The operation’s objectives were highly relevant to the PBH’s policy priorities. They were also in line with federal programs, particularly those focusing on land use, low-income housing, and provision of social services. The operation’s objectives were also fully aligned with those of the Bank’s CPS, effectively translating them to the municipal level. The operation’s overall design was considered to have only modest relevance, as it was overly ambitious in its support of an exceedingly broad set of reforms, some of which had a level of complexity incongruent with an integrated multi-sector operation. In terms of efficacy, achievement was uneven among the various policy actions, with two policy areas performing at a Substantial level of efficacy, three at the threshold between Modest and Substantial, one at Modest, and one of them (i.e., reform of the pension system) at Negligible level. Specifically: • PDO 1 - Promote inclusive urban development through innovative policies that focus on poor and vulnerable citizens exhibited substantial efficacy based on the relative performance of the three policy actions that underlined it and the important achievements in these areas. 19 • POD 2 - Support green and sustainable practices exhibited substantial efficacy based on the relative performance of the two policy actions that underlined it. • PDO 3 - Enable socially and fiscally sustainable urban governance exhibited negligible to modest efficacy based on the relative performance of the corresponding two policy actions. As a whole, the operation is rated Moderately Unsatisfactory. Although the operation exhibited important achievements, there were also significant shortcomings, particularly in relation to relevance of design and efficacy of PDO 3. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development The policy reforms supported by this operation addressed key issues and needs related to the city’s historical social and spatial segregation. These policies and reforms address the main social vulnerabilities of Belo Horizonte, which are linked to access to services, land and economic opportunities, social and spatial inequality, dense urbanization, and settlement in environmentally sensitive and at risk areas. As such, they are expected to have had significant positive social and economic impacts on the most vulnerable population, in particular, the poor living in substandard housing and informal and at-risk settlements (vilas and favelas). During the project preparation phase, the Bank undertook a poverty and social impact analysis to explore the disaggregated social impacts on different stakeholder groups. (b) Institutional Change/Strengthening The operation has supported innovative policies and practices in housing development, resettlement, social programs, climate change adaptation and mitigation and results-based management, contributing to their formal adoption and institutionalization into long-term governance. Particular examples are the best practices in the area of resettlement policy that, although already in existence in PBH for years, were not mandatory. As part of its support, the Bank helped PBH build a resettlement program out of its resettlement practices, standardizing practices and creating a manual. The Bank has also reviewed the content of the manual to ensure harmonization with federal standards in this area. In this way, informal and undocumented practices became legally codified, contributing to their sustainability and national applicability. On the green agenda, the operation supported the municipality in taking a more strategic, integrated approach to managing local environmental priorities within a framework that also takes global climate change impacts into account. In addition, the operation helped strengthen the work that was already being done by the municipality by consolidating and coordinating the various initiatives, which were previously currently dispersed and that are not coordinated. The operation was also critical in formalizing and operationalizing the climate change mitigation agenda, and integrating the disaster risk management agenda. (c) Other Unintended Outcomes and Impacts (positive or negative, if any) • The Bank and the municipality also conducted a TRACE assessment to evaluate BH energy efficiency potential, making Belo Horizonte the first pilot city in Latin America to showcase this new policy approach to environmentally sustainable development. PBH’s TRACE assessment was presented at the Local Governments for Sustainability World Congress, which was hosted by BH in June 2012. 20 • As reported by PBH authorities during the ICR mission, the need to closely monitor outcome indicators under the operation enabled the identification of causes and trends, allowing more substantial analysis and more effective implementation. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops Not Applicable. 4. Assessment of Risk to Development Outcome Rating: Moderate The risks to the sustainability of the operation’s outcomes are deemed to be Moderate, with several factors contributing toward their sustainability. Specifically, the policy actions supported under this operation are being implemented by PBH sector departments and, thus, have been fully mainstreamed. They are also regularly monitored under BH Metas e Resultados. They also have wide public support as they reflect the outcomes of broad participation activities. The full alignment of PBH policies with those of the federal government, as well as solid financial support under federally funded programs, most notably the MCMV Program, also contributes to the sustainability of policy outcomes. BH’s social program focusing on vulnerable families is currently undergoing a significant revamping to enhance targeting, including the redefinition of selection criteria and the improvement of household data as a result of ongoing efforts to update federal-level databases and field visits conducted by BH health agents. Approximately 2,000 families are expected to participate in the program during 2015, which will receive a battery of services tailored to their specific needs as defined under individualized household action plans. There are, however, some areas of concern including the fragile sustainability of the DRM outcomes, as illustrated by the hydrological database not being functional for a year due to contracting delays. Likewise, deeper understanding is needed in the area of pension reform to ensure that the new legislation and the manner in which it is applied will indeed eliminate a future liability that can pose a threat to fiscal sustainability in the long term. Finally, it will be important for PBH to adequately respond to changing trends in the areas of service provision under the BH Resolve model as well as public participation, especially in light of Brazil’s young population and its utilization of new technologies, particularly mobile phones, tablets and computers. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Ranking: Moderately Unsatisfactory Overall, the operation was well-conceived and responded effectively to the priorities of both municipal and federal authorities. The objectives and policy areas were clear and highly relevant to the Government’s reform strategy and the Bank’s CPS. Good dialogue between PBH and the Bank task team during the preparation is critical to operation’s strong relevance. The operation’s design incorporated lessons from previous operations with various state governments, as well as a similar operation with the Municipality of Rio. 21 At the same time, two aspects of the operation’s preparation could have been strengthened. First, a more thorough due diligence in the area of pension reform seems to have been required in view of the sizable increase in the actuarial deficit over the past two years and the lack of a satisfying technical explanation. Leaving the definition of the KPI target for the last preparation mission may have prevented a more in-depth assessment of its adequacy. Second, in view of the delayed loan approval, KPI baselines should have been updated to reflect more current data availability and assess the feasibility of achieving the anticipated targets, particularly those in the areas of public participation and housing rehabilitation. Regarding Bank performance during preparation, it is worth noting that the Borrower disagrees with the Moderately Unsatisfactory rating, expressing both during the ICR mission and in its own ICR that the Bank team did an excellent job in preparing a sound operation despite the complexity of the various policy areas and the time constraints. The client also considers that the indicator focusing on the pension reform was the only one that exhibited weaknesses in an otherwise robust Results Framework. (b) Quality of Supervision Ranking: Satisfactory The project was well-supervised, with a total of three field missions having been conducted during the operation’s lifetime. Sector and CMU managers followed project implementation closely. The operation also benefited from technical assistance provided through various sources, including the Bank’s field office, particularly in the area of environmental management and DRM. In retrospect, it is now clear that an earlier, more aggressive downgrading of the operation’s rating would have been appropriate to flag implementation weaknesses to both managers as well as PBH authorities, particularly in the area of pension reform. (c) Justification of Rating for Overall Bank Performance Ranking: Moderately Satisfactory Overall, the Bank’s performance is considered moderately satisfactory to reflect the moderately unsatisfactory rating for quality at entry, the satisfactory rating for supervision and the Overall Outcome rating of moderately satisfactory. 5.2 Borrower Performance (a) Government Performance Ranking: Moderately Satisfactory There were substantial delays in declaring the operation effective as a result of delays at both the municipal and federal level in the internal approval process due to financial recordkeeping and budgetary approval issues between the municipality and the federal government. The municipal government exhibited strong political leadership and a high level of commitment during preparation and implementation. (b) Implementing Agency or Agencies Performance Ranking: Satisfactory Performance of the implementing agency was Satisfactory. The delay at the start of the project was largely out of the control of the implementing agency. The Secretariat of Finance had overall responsibility for overall coordination and reporting. A Project 22 Implementation Committee comprised of officials from participating sector departments was in charge of program M&E. Officials and agencies overseeing the implementation demonstrated commitment, as well as the technical and institutional capacity to manage the complex and demanding program, exhibiting outstanding achievements in several areas, regularization of land tenure and low-income housing in particular. Communication with Bank staff was excellent. The Borrower’s ICR was submitted early in the evaluation process and was of excellent quality. Had it not been for the Borrower’s ability to flag problems in the area of pension reform, its performance would have been fully satisfactory. (c) Justification of Rating for Overall Borrower Performance Ranking: Moderately Satisfactory Overall, the Borrowers’ performance is deemed moderately satisfactory to reflect the moderately satisfactory rating for the Government’s performance and the satisfactory rating for implementing agencies’ performance, respectively. 23 6. Lessons Learned In the context of multi-sector operations, it is important to ensure the coherence of the various PDOs. In the case of this DPL, PDO 3 was less connected than the other two PDOs and of a level of technical and political complexity that was incompatible with that of an integrated multi-sector operation. When there are substantial delays between approval and effectiveness, reappraisal may be warranted. In the case of this operation, almost two years elapsed between approval and effectiveness. By then, the baselines and many of the targets within the Results Framework were obsolete. Sub-national operations offer great potential for cross-fertilization and economies of scale. As illustrated by this operation, successful innovations supported under sub- national operations can be easily replicated in other states and municipalities. Likewise, there is potential for vertical economies of scale and homogenization by interacting with municipal, state and federal actors simultaneously. When working at the sub-national level, it is critical to maintain close coordination with the federal government to ensure the seamless integration of federally funded programs with subnational policies. PBH’s collaboration with the federal government in the implementation of federal programs, such as Minha Casa Minha Vida, was critical to the operation’s success. The successful collaboration between the municipal and federal level was a critical factor in the operation’s success in this area. On the negative side, it is important to check whether the sub-national entity has any outstanding obligations to the federal level which may impede domestic project approval (as was the case with Belo Horizonte). Policy actions included in a DPL’s Policy Matrix should be on the same scale as the intended results of the operation. In this DPL, a modest target such as the rehabilitation of 250 housing units cannot not be expected to significantly contribute to the more ambitious policy area of improving living conditions and inclusion of vulnerable and poor citizens in order to have an impact at the municipal level. Significant reforms such as that of the civil servants’ pension system require a proportional level of effort at preparation. In the case of PBH, the relative lack of analysis on the institutional capacity for pension reform presented in the Project Document, as well as the sizable difference in terms of the target and actual outcomes, suggest that greater effort should have been done to ensure its feasibility from the technical, economic, institutional, and political economy perspectives. Ongoing changes in patterns in public participation and service delivery may deserve a more in-depth exploration. This operation points to an ongoing shift away from traditional in-person forms of communication (i.e., committees, assemblies, community meetings, in-person customer service) to emerging forms of online communication (i.e., on-line discussion boards and blogs, interest groups, online customer service). This presents a good opportunity for the Bank to review participatory and service provision strategies under the new citizen engagement framework that has just been set. 24 Given the short lifespan of one-tranche DPLs, alternative approaches should be explored to flag potential problem areas early during implementation. Often, data under the Results Framework are available only on an annual basis, which does not allow sufficient time to implement corrective measures when problems arise. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/Implementing agencies See Annex 4. (b) Co-financiers Not Applicable. (c) Other partners and stakeholders Not Applicable. 25 Annex 1. Bank Lending and Implementation Support/Supervision Processes Responsibility/ Names Title Unit Specialty Lending Alessandra Campanaro Senior Urban Specialist LCSDU Task Team Leader Thadeu Abicalil Sr Water & Sanitation Spec. LCSUW Co-Task Team Leader Rafael Chelles Barroso Economist LCSPE Co-Task Team Leader Senior Disaster Risk Management Ana Campo LCSDU Specialist Yaye Seynabou Sakho Economic Adviser LCSPE Economic Adviser Monica McDonough Junior Professional Associate LCSDU Alexandra Panman Junior Professional Associate LCSDU Valerie Santos Senior Urban Specialist LCSDU Patricia Acevedo Program Assistant LCSDU Alberto Costa (LCSSO) Senior Social Development Specialist LCSSO Catarina Portelo Senior Counsel LCSSO Senior Counsel Social Development Flavia Carbonari Consultant LCSSO Analyst Jessica Gallegos Junior Professional Associate LCSSO Alejandro Alcala Gerez Senior Council LCSSO Augusto Mendonça Consultant LCSEN Catalina Marulanda Lead Urban Specialist LCSEN Joseph Mubiru Kizito Lead Financial Management Specialist LCSEN Georges Darido Senior Transport Specialist LCSFM Miguel Santiago Oliveira CTRLN Deborah L. Wetzel Country Director, Brazil BSBWB Boris Utria Country Operations Officer, Brazil BSBWB Tania Lettieri Operations Officer BSBWB Ede Jorge Ijjasz-Vasquez Senior Director LCSSD Paul Kriss Program Leader LCSSD Wambui G. Gichuri Practice Manager LCSWS Senior Social Fabio Pittaluga Senior Social Development Spec LCSSO Development Spec. Supervision Alberto Coelho Gomes Costa Senior Social Development Specialist GSURR Alessandra Campanaro Senior Urban Specialist GSURR Task Team Leader 1 Catalina Marulanda Lead Urban Specialist GSURR David Nathan Sobel Consultant GSURR Fabio Pittaluga Senior Social Development Specialist GSURR Lead Disaster Risk Management Josef L. Leitmann Specialist GSURR Task Team Leader 2 Thadeu Abicalil Sr Water & Sanitation Spec. GWADR Pedzisayi Makumbe Energy Specialist GEEES Rafael Chelles Barroso Economist GMFDR Katia Lemos Costa Consultant ICR Preparation Cecilia Zanetta Consultant ICR Preparation 26 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage USD ‘000 No. of staff weeks (incl. travel and consultant costs) Lending FY2011 14 79,343 FY2012 36 211,497 FY2013 8 53,983 FY2014 - - Total: 58 344,823 Supervision / ICR FY2013 - - FY2014 9 71,407 FY2015 8 56,529 Total: 17 126,936 27 Annex 2. Beneficiary Survey Results Not Applicable. 28 Annex 3. Stakeholder Workshop Report and Results Not Applicable. 29 Annex 4. Summary of Borrower's ICR and/or Comments on Draft ICR Relatório de Conclusão 13 Programa de Política de Desenvolvimento Urbano Incluso de Belo Horizonte 1. Referência Operação de crédito para implementação de Política de Desenvolvimento Urbano Inclusivo do Município de Belo Horizonte – Relatório de Conclusão do Programa. 2. Introdução Em maio de 2011 iniciaram-se as negociações para o empréstimo destinado a implantação do Programa de Fortalecimento de Políticas focadas em ações de Governança, Desenvolvimento Urbano; Desenvolvimento Social e Habitação; e Políticas de Meio Ambiente e Desenvolvimento Sustentável, com a manutenção do equilíbrio fiscal. O Contrato de empréstimo foi assinado em 10 de dezembro de 2013. A colaboração do Banco Mundial foi fundamental para a melhoria do Setor Público, reforçando a estratégia do Governo para a excelência na Gestão Pública propiciando uma administração mais eficiente e incentivando o desenvolvimento do setor privado no Município. A fim de acompanhar e avaliar o sucesso das politicas adotadas foi estabelecido Indicadores de desempenho, que monitoraram as principais áreas de atuação do programa. As metas e os resultados esperados em cada uma das áreas compõem a Matriz de Políticas apoiadas pelo Banco Mundial. Diante do exposto, este relatório foi elaborado com o objetivo de mostrar o desempenho e o resultado das políticas implantadas no âmbito do Programa. 3. Auto Avaliação da Prefeitura de Belo Horizonte O desempenho de todos os órgãos envolvidos no cumprimento das políticas acordadas na matriz do empréstimo foi fundamental para o êxito do Programa. O objetivo do programa foi alcançado mediante a introdução de enfoques inovadores para abordar o planejamento urbano, desenvolvimento ambiental sustentável, inclusão e participação social e governança sustentável. Os impactos promovidos foram significativos para fortalecimento do sistema de proteção social, fortalecendo moradia acessível para grupos de baixa renda e 13 Prefeitura de Belo Horizonte (2015), Relatório de Conclusão - Programa de Política de Desenvolvimento Urbano Incluso de Belo Horizonte, Marcelo Piancastelli de Siqueira; Secretário Municipal de Finanças; Paulo Roberto de Araújo, , Coordenador Executivo do Programa, Janeiro 2015, Belo Horizonte. 30 melhorando as condições de vida de populações vulneráveis mediante apoio a programas municipais como o Pré e Pós Morar e o Família Cidadã, Cidade Solidária. Também viabilizou a agenda de crescimento verde apoiando o desenvolvimento de políticas municipais sobre mudança climática, ações e desenvolvimento ambiental sustentável. Finalmente, quanto ao sistema de previdência social dos funcionários públicos, a reforma implantada por meio da lei nº 10.362/2012, optou pela Segregação de Massas - separação dos segurados vinculados ao Regime Próprio de Previdência Social - RPPS em grupos distintos, que passaram a integrar o Plano Financeiro e o Plano Previdenciário, minimizando, portanto, o desequilíbrio financeiro. Em síntese foi criado o Fundo Financeiro – FUFIN, grupo fechado e de repartição simples cuja receita de contribuição é insuficiente para arcar integralmente com despesas de benefícios. Aquele fundo continuará a receber mensalmente aportes do Tesouro Municipal. O segundo - Fundo Previdenciário possui natureza de capitalização e foi criado para garantir futuras aposentadorias e pensões não necessitando de aporte do Tesouro Municipal, o que torna autossustentável. O Programa foi coordenado pelo Sr. Paulo Roberto de Araújo e pela equipe da PBH integrantes dos seguintes órgãos: Secretaria Municipal de Finanças, Secretaria Municipal Adjunta do Tesouro, Secretaria Municipal Adjunta da Arrecadação, Contadoria Geral do Município, Secretaria Municipal de Planejamento, Orçamento e Informação, Secretaria Municipal Adjunta de Orçamento, Secretaria Municipal Adjunta de Gestão Previdenciária, Secretaria Municipal de Obras e Infraestrutura, Companhia Urbanizadora e de Habitação de Belo Horizonte – URBEL, Secretaria Municipal do Meio Ambiente, Secretaria Municipal de Governo, Secretaria Municipal Adjunta de Gestão Compartilhada, Secretaria Municipal Adjunta de Modernização, Coordenação Executiva do Programa BH Metas de Resultados, Secretaria Municipal de Serviços Urbanos, Secretaria Municipal Adjunta de Regulação Urbana e Secretaria Municipal de Segurança Urbana e Patrimonial. 4. Avalição do desempenho do Banco Mundial O Programa da Política de Desenvolvimento Urbano Inclusivo de Belo Horizonte foi preparado em conjunto com os técnicos da PBH – Prefeitura de Belo Horizonte e por uma equipe do BIRD – Banco Internacional para Reconstrução e Desenvolvimento. A competência da equipe liderada pela Sra. Alessandra Campanaro e pelos Co-Líderes Srs. Thadeu Abicalil e Rafael Barroso na formulação e na implementação das políticas públicas em parceria com a vasta equipe técnica da Prefeitura de Belo Horizonte na elaboração e concepção da exitosa política alavancou o desenvolvimento urbano integrado e sustentável e reduziu a vulnerabilidade social do município. O programa foi totalmente congruente e estreitamente vinculado com os objetivos da estratégia de parceria com o país. O programa auxiliou o município a ampliar investimentos e trouxe um impacto significativo no fortalecimento dos sistemas de proteção social mediante a oferta de habitações acessíveis e melhores condições de vida para as populações mais vulneráveis. 31 5. Lições aprendidas O Empréstimo concedido pelo Banco Mundial para o Programa de Desenvolvimento Urbano de Belo Horizonte aproveitou a experiência do Banco no Brasil no âmbito federal, estadual e municipal. O desenho dessa operação inseriu lições específicas aprendidas na realização de empréstimos e operações anteriores apoiadas pelo Banco no Brasil e em outros Países da América Latina e do Caribe. 5.1. Seis lições principais resultantes da experiência do Banco I. Lição 1: O conteúdo de políticas da operação deve pertencer e refletir as prioridades do cliente e o processo de formulação de políticas deve envolver ampla consulta pública. O comprometimento de Belo Horizonte com uma consulta pública mais ampla é uma marca registrada de seu processo de formulação de políticas. II. Lição 2: Importância de um bom diálogo durante a preparação da operação. O Banco trabalhou de perto com a administração de Belo Horizonte para definir as reformas a serem apoiadas pelo DPL - Empréstimo para política de desenvolvimento e estabelecer acordos para ajudar a implementação no médio prazo. Também foram reconhecidas áreas para um potencial acompanhamento da assistência técnica, como políticas de uso do solo, moradia e reassentamento e monitoramento e avaliação do desenvolvimento social. III. Lição 3: Trabalho em coordenação estreita com o Governo Federal. A experiência com DPL subnacionais apresentou a importância da coordenação com o Governo Federal. A operação foi iniciada com a concordância do Tesouro Nacional. Belo Horizonte também colaborou com o Governo Federal na implementação de programas importantes para o sucesso deste DPL, como o Minha Casa Minha Vida. IV. Lição 4: Manter a continuidade do apoio à reforma multissetorial. A operação baseou num enfoque multissetorial inovador. O município de BH colocou em prática uma agenda bastante progressista com relação ao desenvolvimento urbano, onde questões de uso e regularização do solo, prestação de serviços básicos, inclusão, participação, redução da vulnerabilidade e gestão do risco de desastres foram integrados em termos de formulação e implementação da política. A determinação de objetivos e reformas de médio e longo prazo também aperfeiçoou a capacidade de medir resultados. V. Lição 5: As ações prévias foram essenciais na implantação de importantes reformas de políticas e arranjos institucionais. VI. Lição 6: O financiamento obtido e a necessidade de manter o monitoramento dos indicadores para o cumprimento das metas, viabilizou a identificação de causas e tendências, permitindo análises mais substanciais e ações mais efetivas para a implantação do Programa. 6. Sustentabilidade dos resultados das políticas 6.1. Contextualização Com o objetivo de apoiar o desenvolvimento urbano integrado e sustentável e reduzir a vulnerabilidade social em Belo Horizonte, foi viabilizado o empréstimo de US$ 200 milhões de dólares americanos junto ao BIRD por meio da Secretaria Municipal 32 de Finanças, ajudando o município a aumentar os investimentos e fortalecendo políticas de inclusão e participação social, de desenvolvimento ambiental e de governança urbana sustentável. Foram estabelecidas três áreas de Política, para as quais foram definidas: estratégias, ações prévias, resultados e indicadores de monitoramento dos resultados (Quadro - Matriz do Empréstimo de Política de Desenvolvimento Urbano Inclusivo). Síntese dos Indicadores Indicadores de resultado Resultados Alcançados 1) Número de famílias beneficiadas pela 1) Meta superada em 34,45% com a regularização regularização fundiária entre 2009 e 2013. Base 2011 fundiária para 16.342 famílias. = 8.768; Meta 2013: 12.155. 2) Número de novas unidades habitacionais de baixa 2) Meta superada em 156% com a construção de 13.575 renda. Base 2011 = 1.470; Meta 2013 = 5.302. unidades habitacionais. 3) Número de terrenos transferidos pela Caixa. Base 2011 = 0; Meta 2013 = 1.470. 3) Meta superada em 58,84% com a transferência de 2.335 terrenos. 4) Número de pessoas que continuam nos conjuntos 4) Meta superada em 1%. habitacionais após dois anos Base 2011 = 75%; Meta 2013 = > 85%. 5) Número de famílias com um plano de ação 5) 750 famílias (meta não alcançada) implementado. Base janeiro de 2011 = 750; Meta Entretanto, houve avanços qualitativos, como, por dezembro 2013 = 1.500. exemplo, a revisão da metodologia para a inclusão de famílias com base em indicadores objetivos, disponível no sistema federal, como no caso dos dados do CAD (Cadastro Único do Governo Federal) e a utilização da base do IDF (Índice de Desenvolvimento da Família). 6) Percentagem de famílias chefiadas por mulheres 6) Meta alcançada: 68%. 510 das 750 famílias com um com plano de ação dedicado. Base 2011 = 0%. Meta plano de ação implementado são famílias chefiadas por 2013 = 60%. mulheres. 7) Número de casas reformadas em resultado do 7) 24 (meta não alcançada). Não houve êxito no programa. Base dezembro 2011 = 0; Meta dezembro atingimento dessa meta relacionada com o projeto- 2013 = 250. piloto de reabilitação. Somente 24 das 250 propriedades foram reformadas, sendo que 10 famílias já foram atendidas e outras 14 reformas estão em andamento e devem terminar até o final do projeto. Os fatores que contribuíram para a baixa efetividade desse indicador incluem a falta de segurança na posse de terra e dificuldades em conseguir provedores de serviços, que não têm muito interesse nessas obras, devido ao baixo custo do empreendimento e a dispersão das obras pela cidade, ao invés de serem concentradas em uma região específica. 8) Número de serviços prestados em unidades da BH 8) Meta superada em 27,07% com atendimento de Resolve. Base 2011 = 94.678; Meta 2013 = 148.500. 188.700. 9) Percentagem de usuários que classificam os serviços prestados como bons ou excelentes nas unidades de 9) Meta superada em 4% com o nível de bons e BH Resolve. Base 2011 = 0%; Meta 2013 90%. excelentes serviços prestados de 94%. (média dos canais de atendimentos telefônico e presencial). 10) Plano de Ação Municipal para Mudança 10) Meta atingida Climática que integra e referencia iniciativas setoriais de resíduos sólidos, água, energia e silvicultura urbana com a meta de promover eficiência e sustentabilidade. Base 2011 = 0; Meta 2013= 1. 33 11) Base de dados consolidada de: (i) parâmetros 11) Meta atingida hidrológicos e climáticos; (ii) desastres e danos. Base 2011 = 0; Meta 2013 = 1. 12) Número de relatórios mensais de desempenho do 12) Meta atingida sistema de alerta precoce emitidos. Base 2011 = 0; Meta 2013 = 12. 13) Percentagem de resultados completados 13) De 2009 a 2013, o resultado representou 97,64% da anualmente segundo o cronograma. Base 2010 = meta. 33%; Meta 2013 = 70%. 14) Demanda efetiva de projetos decididos pela comunidade incluídos no plano plurianual da cidade. 14) Meta atingida, considerando que 72% das propostas Base 2011= 0%; Meta 2013 = 25%. apresentadas no PPR - Planejamento Participativo Regionalizado foram identificadas nas ações e sub ações do PPAG que será executado até 2017. 15) Aumento no número de participantes da sociedade civil nos processos (OP Digital, OP 15) Meta não alcançada. Diminuição da participação no Regional, PPR). Base 2011 = 10%; Meta 2013 = OP Digital e a realização do PPR será em 2015. 15%. 16) Déficit atuarial do plano de aposentadoria. Base 16) Equívoco na formulação da meta de 2010 e na 2010 = R$ 6,933 bilhões. Meta 2013 = R$ 6,857 estabelecida para 2013. bilhões. Com a implantação do Plano de Capitalização o impacto nas finanças do município foi minimizado, fortalecendo a sustentabilidade fiscal a longo prazo. 6.2. Metas (ações desenvolvidas) e Situação atual - resultados qualitativos e quantitativos. Promover o desenvolvimento urbano inclusivo mediante politicas inovadoras focadas nos cidadãos pobres e vulneráveis Política Habitacional A Política Municipal Habitacional de Belo Horizonte compreende em um conjunto integrado de ações no contexto das vilas e favelas e do movimento organizado pela moradia, a partir de duas linhas básicas: intervenções nos assentamentos existentes e produção de novos assentamentos. De modo geral, tais áreas de atuação perpassam quatro principais eixos (programáticos):  Ações de intervenções urbanístico-ambientais em assentamentos existentes (estruturais, pontuais, parciais ou em áreas remanescentes);  Ações de redução do déficit habitacional (construção e aquisição de unidades habitacionais);  Ações de natureza sócio-organizativa (acompanhamento social e desenvolvimento de comunidades);  Ações de regularização fundiária. Além disso, as iniciativas priorizam formas de atuação pautadas no fortalecimento da participação e da cidadania. Neste sentido, o acompanhamento social – sobretudo no que se refere ao acompanhamento Pré e Pós Morar – bem como o programa de Regularização Fundiária exercem fundamental importância. Como se pode verificar, o escopo da política relacionado com a produção de unidades habitacionais estabelece formas de atendimento tanto para suprir a demanda (sempre crescente) de novas unidades habitacionais como também para prover as necessidades decorrentes de reassentamento involuntário, em função de obras ou riscos (geológico, geotécnico, social). 34 Com base nos princípios desta política, nos últimos 02 anos foram aprovadas duas leis municipais de apoio à expansão da provisão habitacional para a população de baixa renda e, ambas, relacionadas com a delimitação e regulamentação urbanística de novas áreas destinadas à produção de habitação de interesse social – AEIS 1 (Áreas Especiais de Interesse Social 1); a lei 10.628 de 05/07/2013 (AEIS 1 públicas) e a lei 10.716 de 20/01/2014 (AEIS 1 privadas). As leis são importantes para a produção habitacional de baixa renda porque, entre outros aspectos, possibilitam:  A ampliação da oferta de terrenos destinados a empreendimentos habitacionais de interesse social;  Um melhor aproveitamento dos terrenos inseridos em AEIS 1, com a definição de novos parâmetros urbanísticos de parcelamento e ocupação;  O estímulo à produção habitacional de interesse social pelos proprietários de terrenos, pois faculta a reserva de parte dos terrenos para livre comercialização. Além disso, o Município, após a elaboração do PLHIS (Plano Local de Habitação de Interesse Social/2010) e dos Planos Regionais (finalizados em 2013) está incorporando, definitivamente, na legislação urbana a delimitação e regulamentação das AEIS-2 (Áreas Especiais de Interesse Social 2). Constituem as AEIS-2 os loteamentos passíveis de regularização fundiária e ocupados, predominantemente, por população de baixa renda. É, portanto, um importante instrumento urbanístico para reduzir a exclusão social no Município. O projeto de lei, em elaboração, resultado das discussões públicas na IV Conferência Municipal de Política Urbana, realizada no ano de 2014, incorporou a delimitação dessas áreas de interesse social e propôs diretrizes e instrumentos para sua regularização fundiária, entre outros:  Instituição do Plano de Regularização Urbanística para esses assentamentos;  Flexibilização de parâmetros para regularização do parcelamento;  Critérios para modificação da configuração urbanística;  Possibilidade de parcerias para urbanização, reconfiguração e resolução de conflitos extrajudiciais. Com relação aos indicadores sob a responsabilidade da URBEL propostos na Matriz do Empréstimo, cabem as seguintes considerações: Área de política 1: Promover desenvolvimento urbano inclusivo mediante políticas inovadoras que focalizam os cidadãos pobres e vulneráveis 1. Número de famílias beneficiadas pela regularização fundiária entre 2009 e 2013: 16.342 (meta alcançada) Base 2011 = 8.768; Meta 2013: 12.155 O resultado superou amplamente a meta estabelecida. Até dezembro de 2014 foram regularizados 5.766 lotes beneficiando 9.426 domicílios em vilas e favelas, e são esperadas mais 5.000 regularizações de domicílios até setembro de 2015. Há, ainda, outras 2.000 regularizações de domicílios em andamento. Além destas, foram regularizados 6.916 domicílios clandestinos. 35 Entre 2009 a 2013 foram regularizados o Conjunto Jardim Felicidade, o Conjunto Confisco, os Setores 3 e 8 do Conjunto Taquaril, a Vila Corumbiara, parte da Vila Alto Vera Cruz e o Conjunto Pedras Preciosas, foi edificado para o reassentamento de famílias removidas do Aglomerado Morro das Pedras. Nesse período, foram aprovados 5.312 lotes, emitidas 4.088 escrituras totalizando 8.824 domicílios beneficiados. Em 2014 foi concluída a Regularização Fundiária da Vila Senhor dos Passos onde foram aprovados 454 lotes, emitidas 183 escrituras, beneficiando 602 domicílios (Tabela anexa: Resultados da Regularização Fundiária de 2009 a 2013). Encontra em processo de regularização a Vila Califórnia, as Vilas Nossa Senhora de Fátima e Marçola no Aglomerado da Serra e os Conjuntos Jatobá I, II, III e IV. Cabe ressaltar o processo de regularização da Vila Corumbiara onde a Prefeitura de Belo Horizonte, de forma pioneira no Brasil, aplicou o instrumento da Demarcação Urbanística instituído pela Lei Federal 11.977 de 2009. Trata-se de um procedimento administrativo pelo qual o Poder Público, no âmbito da Regularização Fundiária de Interesse Social, demarca imóvel de propriedade pública ou privada, com a finalidade de identificar seus ocupantes e reconhecer as respectivas posses. Esse procedimento é considerado “usucapião administrativa” conduzida pela Administração Municipal e em parceria com os Cartórios de Registro de Imóveis, ou seja, sem a necessidade de ação judicial. 2. Número de novas unidades habitacionais de baixa renda: 13.575 (meta alcançada) Base 2011 = 1.470; Meta 2013 = 5.302. Este indicador foi considerado como “número de unidades habitacionais viabilizadas (contrato Caixa- empreiteira) pelo Programa Minha Casa Minha Vida - Faixa 01” (renda familiar até 03 salários mínimos). Até dezembro de 2014 foram contratadas 13.575 Unidades Habitacionais – UH’s junto à Caixa Econômica Federal - CEF, para famílias com renda familiar de 0 a 3 salários mínimos, das quais 2.194 se encontram em construção e 2.485 estão concluídas. Das unidades habitacionais concluídas, 2.335 já foram entregues aos beneficiários. Das 2.194 em construção, 1.938 serão entregues no 1º trimestre de 2015, 76 serão entregues no 2º trimestre de 2015 e 180 serão entregues no 1º trimestre de 2016. As 8.896 UH’s restantes se localizam no terreno denominado Granja Werneck. O contrato com a empreiteira que realizará as obras já foi assinado e o empreendimento encontra-se em fase de licenciamento. A meta final do projeto de contratação de 5.302 UH’s foi superada. 3. Número de terrenos transferidos pela Caixa: 2.335 (meta alcançada) Base 2011 = 0; Meta 2013 = 1.470 Este indicador foi considerado como “nº de unidades habitacionais com contrato assinado Mutuário - Caixa pelo Programa Minha Casa Minha Vida - Faixa 01” (renda familiar até 03 salários mínimos). Até dezembro de 2014 foram assinados 2.335 contratos junto à CEF, relativos a frações ideais de imóveis destinados a famílias com renda familiar de 0 a 03 salários mínimos. O resultado é bastante positivo, superando amplamente a meta final do projeto de transferência de 1.470 terrenos (frações ideais). 36 Ação de política 2: PBH aumenta a propriedade de moradores em seu programa de moradia de baixa renda desenvolvendo e implementando um modelo para inclusão social e subsistência sustentável. 4. Número de pessoas que continuam nos conjuntos habitacionais após dois anos: 86% (meta alcançada) Base 2011 = 75%; Meta 2013 = > 85% Em maio de 2014 foram atingidos 86%, superando a meta de 85%. Esclarecemos que não foi possível apurar o número atualizado, até dezembro/14, vez que o contrato voltado para o pós-morar dos conjuntos habitacionais foi rescindido. O trabalho é atualmente realizado com equipe interna, que deverá ser finalizado até final de 2015. A meta numérica se refere ao número de famílias que permanecem nos conjuntos habitacionais, após dois anos de entrega dessas unidades. Partiu-se do dado inicial de que em 2011 o percentual de famílias que permaneciam nos imóveis era de 75%. Uma análise, buscando as razões que implicam na não permanência dos beneficiários nestas unidades, leva a indicar os seguintes aspectos:  Não adaptação das famílias ao novo local de moradia;  Ausência de atendimento pelos serviços públicos na nova moradia;  Questões ligadas à violência urbana;  Faltam de laços de vizinhança, apoio social e solidariedade no novo contexto social;  Autonomia das famílias para a venda do imóvel e aquisição de outra moradia. Dos motivos acima elencados, vale destacar que a autonomia das famílias é um aspecto positivo e que a venda dessas unidades é inclusive autorizada na Política Municipal de Habitação, por meio de resoluções do Conselho Municipal de Habitação (Resoluções XIX, XX e XXII, do ano de 2011). Tais resoluções têm por objetivo garantir que as famílias adquirentes atendam aos critérios da Política Municipal e de Habitação e que, caso os conjuntos ainda não sejam titulados, venham a sê-lo futuramente. Essa questão é aqui destacada para indicar que, em nenhum momento, pode-se considerar adequado que não haja movimentação de famílias nestes residenciais. Para as outras questões que podem ser indicadas como causa para a saída das famílias, especialmente no âmbito do contrato de financiamento com o Banco Mundial, foi pensado em um arranjo institucional que pudesse concatenar a ação dos diversos órgãos da PBH, visando ampliar a rede de serviços sociais para melhor articulação no território onde se localizam tais conjuntos. Para isso, foi criado, por meio do Decreto Municipal 14.641/2011 o Programa de Pré e Pós Morar, com objetivo de implementar ações de acompanhamento sócio organizativo junto à população beneficiária da Política Municipal de Habitação, com vistas a favorecer a adaptação e apropriação da edificação e espaços comuns dos conjuntos habitacionais. As diretrizes desse programa são nos termos daquele decreto: I - articulação das políticas públicas, garantindo a inserção das famílias beneficiárias nos serviços existentes na área acolhedora; II - redução dos impactos provenientes da transferência para a nova moradia; 37 III - desenvolvimento de processos participativos e organizativos. Com o Decreto, as ações dos diversos órgãos partícipes passam a ser articuladas, conjugando esforços para o atendimento da população beneficiada daquele território. Após a promulgação do Decreto, foram apurados os dados em maio de 2014, tendo em vista o cumprimento da meta estabelecida no convênio, conforme a seguinte metodologia: 1 – Para o público dos conjuntos produzidos para reassentamento de famílias removidas em função das intervenções estruturantes, foi levantado o total de conjuntos que, nesta época, já haviam completado 02 anos de conclusão e mudança das famílias. Com estes dados, foram apurados os casos registrados de solicitações de interveniência e de ocupações irregulares, para se alcançar o percentual de famílias que ainda permaneciam no local. Os dados são apresentados na Tabela – Anexo I, onde se alcança o percentual de permanência de 95,21% das famílias originalmente reassentadas. 2 – Para os conjuntos que possuem, em sua maior parte, famílias originárias do movimento organizado por moradia (considerado o público “sem-casa”), foi considerada a última atualização cadastral realizada nestes conjuntos. Os dados são apresentados na Tabela – Anexo II onde se alcança o percentual de permanência de 76,8 % das famílias originalmente reassentadas. Fazendo-se a média entre estes dois públicos, chegamos ao percentual de 86% de permanência, alcançando, portanto, a meta definida para o ano de 2013. Cabe ponderar sobre a diferença no percentual apurado considerando estes dois públicos. O alto índice de permanência nos conjuntos habitacionais relativos às obras de urbanização, especialmente do Programa Vila Viva (intervenção estrutural), é justificado pelo extenso trabalho social implementado nos empreendimentos conforme diretrizes do Ministério das Cidades e da Caixa Econômica Federal, agentes financiadores do Programa em Belo Horizonte. Essas intervenções são acompanhadas da execução e implementação do PTTS – Plano de Trabalho Técnico Social que prevê, além do acompanhamento social de toda execução da obra, ações intensas de pré e pós morar. Entendemos que essa ação ajuda minimizar os efeitos da remoção, especialmente pela criação de vínculos sociais entre as famílias atendidas, pactuando regras de convivência e buscando a melhor adaptação às unidades habitacionais. Além disso, geralmente são famílias advindas de um mesmo território, e cujo reassentamento ocorre em área próxima à origem, estando, portanto os vínculos sociais mais facilmente mantidos. Quanto às famílias dos conjuntos habitacionais destinados ao atendimento do déficit habitacional (“sem casa”), os conjuntos são mais antigos e, em geral, não passaram por um trabalho de pré morar consistente. Tal fato pode ser minimizado nos próximos conjuntos habitacionais, especialmente aqueles construídos através do Programa Minha Casa Minha Vida, em que há previsão de recursos e de ações de pré morar mais efetivas, basicamente nos mesmos eixos do trabalho já realizado nos conjuntos habitacionais vinculados a obras de urbanização. Optamos por apresentar o dado separado pois, as distinções do trabalho social realizado com os dois públicos traz indicadores interessantes para perceber os níveis de 38 permanência em cada uma das situações. Assim, não vemos problema na agregação do dado para fins do relatório. Vale ainda mencionar que, com o financiamento e a necessidade de manter o monitoramento desses dados para cumprimento da meta, viabiliza-se a possibilidade de identificar causas e tendências, permitindo análises mais substanciais e ações mais efetivas para a real ampliação da apropriação destas unidades habitacionais pelas famílias. 39 Annex 5. Comments of Co-financiers and Other Partners/Stakeholders Not Applicable 41 Annex 6. Summary of Main Project Outcomes 14 Introduction This report is the summary of the complete report presented by the consultant on evaluation mission in December, 2-5 in Belo Horizonte, regarding outcomes and relevant background. The loan supported Belo Horizonte’s Municipal Government in the continuation of prior policy actions included in their work plan. Those policy actions were designed to reach a series of objectives in three broad policy areas and adopted specific strategies to reach them, with foreseen results as well as indicators of performance for each action, described in the loan matrix in the project document. Sixteen indicators were selected during the loan negotiation started in May 2011 and the situation of each indicator in that year was defined as the baseline evaluation, while goals were set for the year 2013. The loan agreement was signed only in December 2013, when a formal review of the indicators probably should have been done, adopting as new baseline the year 2013 and setting new goals for the end of the project (December 2014). The failure in revising the indicators to suit the actual contract dates caused many difficulties in the evaluation and it has not been possible to establish how much of the outcomes result from the loan’s support. This report presents overview of the outcomes in each indicator, except Indicator 16, which is being prepared by the representative of the World Bank who accompanied the development of the project since the start. Policy Area 1: Inclusive urban development Promote inclusive urban development through innovative policies that focus on poor and vulnerable citizens Objective A: Strengthen land management and planning The main achievements in this area include the development of a strong legal background which allows for the sustainability and continuity of the policy, also facilitated by the implementation of monitoring and evaluation procedures during this project; the involvement of other government sectors and the private sector; and the emphasis in community participation, which propitiates a healthy social control over the implementation of the housing policy. The existence of integrated municipal policies of social inclusion in the urban and housing area is essential to optimize financial and human resources, strengthening the government action in the most vulnerable territories. 14 This annex was prepared by Katia Lemos Costa, consultant. 42 In the opinion of the team, the loan helped focusing on results by investing resources and establishing performance indicators, allowing for the permanent evaluation of the programs, actions and projects in course and the identification of causes and tendencies. The monitoring helps with more substantial analysis to support actions that are more effective in assuring the definite appropriation of the housing and land by the families. Indicator 1: Land regularization Number of households benefiting from land regularization between 2009 and 2013: 16,342 (goal achieved) Baseline 2011 = 8,768; Goal 2013: 12,155. The indicator considered the property titles issued in villages and slums and the legalization of clandestine occupation plots. These data are for the period 2009–2014, while the indicator was originally defined for the period between 2009 and 2013. The outcome surpassed the goal established initially. From 2009 to December 2014, 9,426 titles were issued in villages and slums and 6,916 clandestine plots were legalized (5,355 were legalized until 2012; 1,049 in 2013; and 547 in 2014). Indicator 2: Low income housing Number of new housing starts of formally developed low-income housing units: 13,575 (goal achieved) Baseline 2011 = 1,470; Goal 2013 = 5,302 This indicator considered the number of low income (up to three minimal wages) housing units with a signed contract between the builders and the official bank CAIXA, manager of the Minha Casa Minha Vida (My House My Life) – MCMV program. As per December 2014, a total of 13,575 housing units were under contract, from which 2,485 have already been handled to their beneficiaries and 2,194 are being built. According to the government’s final report, 1,938 of these will be delivered in the first trimester of 2015 and 180 will be delivered in the first trimester of 2016. The remaining 8,896 are part of the Werneck Settlement, which is in the process of environmental licensing and for which the contract between CAIXA and the builders has been signed. Belo Horizonte made good progress in the area of housing even before the MCMV but this federal program certainly contributed to give a larger scale to the work of the municipal government. Indicator 3: Low income new plots Number of new plots transferred by CAIXA: 2,325 (goal achieved) Baseline 2011 = 0; Goal 2013 = 1,470 By December 2014, 2,335 contracts were signed between CAIXA and the beneficiaries so the result is very positive, surpassing by far the initial goal. This indicator considered the number of housing units with a signed contract between beneficiary and CAIXA in the program MCMV – Class 1 (family income up to three minimal wages). 43 Apart from the social component of the MCMV program, Belo Horizonte has a social work plan, called PTTS (Plano de Trabalho Técnico-Social) and its own program, the Vila Viva, also financed by the federal government. The PTTS consists in diagnostics, action plans and the implementation of social work to monitor the urban and housing interventions with the objectives of promoting social participation and improving the conditions of life, the effective social rights of the beneficiaries, and the sustainability of the urban and housing interventions. The municipal legislation assures the permanence of the original families in areas assigned for low income populations even in the event of income increase; this helps controlling land dealing and the expulsion of the families from social interest settlements, which remain classified in this category. The regulation about areas of special interest started in 1985. Objective B: Improve living conditions and inclusion of vulnerable and poor citizens To measure the progress towards this objective, four indicators were selected: permanence of families in new housing developments; action plans to improve the living conditions of vulnerable families; action plans to assist female-headed households; and house rehabilitation. Because of the specificities of the indicators, the relevant background is presented under each indicator, as follows. Indicator 4: Permanence in housing developments Number of people remaining in social housing developments after two years: 86% (goal achieved) Baseline 2011 = 75%; Goal 2013 = > 85%. This indicator considered the settlements with two or more years, corresponding to 6,534 housing units in villages and slums. The houses of the program MCMV are more recent than two years so they are not included. The percentage of permanence in housing developments reached 86% in 2013, surpassing the goal for this indicator but there is no updated information to understand the outcomes of the work done in 2014. An analysis made by URBEL showed five main reasons for the families to leave the new settlements, listed below. The social work was developed focusing on the need to overcome those main issues. • Lack of adaptation to the new suburb • Lack of public services provision in the new house • Issues of urban violence (mostly drug related) • Lack of neighborhood attachments and social support in the new social context • Freedom to move (although this is a desirable condition, supported by the Municipal Housing Policy through specific regulation to ensure this rights to the families, as long as the houses are sold to other low income families and the minimal period of permanence is finished) 44 It is important to note that the rate of permanence varies according to the profile of the public, being higher in the case of resettled families (95.21%) than in the case of homeless people (76.8%). This difference is due to the more intense social work with resettled families and also to the fact that these families came from the same original territory and the resettlement is generally made in a nearby area so the social relationships can be more easily maintained. Those findings point to the need to intensify the social work with the homeless public. The indicator of permanence in new houses was calculated considering the average between these two publics. The team from URBEL stated that this indicator has been very important for their work, as it helps identifying causes and tendencies, and will keep being monitored after the end of the project. Before the monitoring the information was dispersed, making it difficult to have an overview of the permanence but now it is possible to identify the settlements where the social work needs to be intensified. In order to foment the permanence of the families in social housing developments, the PBH worked to improve the social services network in those territories, having published a municipal decree in 2011 (14.631) launching the Pré and Pós Morar (PPM) programs with the objective of facilitating adaptation and improving the sense of ownership over the houses and communal spaces within new settlements. Some important lessons regarding this issue are: • Whenever there is an intensification of the social work in a new settlement, the rates of permanence increase. • The increase in the rate of permanence works in two directions: when more families remain in the community, the problems which cause them to leave are better controlled (e.g. violence and drug dealing) and the rules agreed upon are better respected. Changes in the communities disrupt their own collective construction. • An important aspect which helps to improve the permanence is giving the chance to the families to choose the region of the city where they want to live. The result of having a few options is very different than when there is only one option. The rule of the MCM is making a draw so the first families have more options to choose from. In the case of resettlements, the families are directed to areas as close as possible to their original region, working with the attachment to the land of origin, and the first ones to be removed choose first. Indicator 5: Family action plans Number of families with a dedicated action plan implemented: 750 (goal not achieved) Baseline January de 2011 = 750; Goal December 2013 = 1,500 While the number of families did not increase, progress was made in the methodology used to select families to participate in the program. It now incorporates objective indicators such as the CAD (Federal Registry Database) and the IDF (Índice de Desenvolvimento da Família – Family Development Index). 45 The progress in the program is more qualitative than quantitative. In 2014, the dialogue between the sectors involved directly and indirectly with the program increased. There is a strong committee composed of the head of the Secretariats and representatives of the nine administration regions. The committee can decide about social policy and one of the mandatory issues discussed in the monthly meetings is the program Família Cidadã, BH sem Miséria (Citizen Family, BH without Poverty), formerly called Familia Cidadã, Cidade Solidária (Citizen Family, City with Solidarity). Another important progress made is the development of an integrated database for the Secretariat of Social Policy, called SIGPS. The system is being developed over the last seven years and is now ready for the automatic migration of information of other databases. The long term goal for this indicator is to reach all the families that need social assistance in the municipality, estimated in 15,000 families. Currently, there are 3,300 families selected by the program. One hundred families have been selected in each one of the 33 low income territories. The team used 18 indicators to select the families in extreme poverty (3,300) and there was a second round of selection to obtain the 2,049 families to be attended in 2015. Reasons behind underachievement in this indicator include: • Overoptimistic goals due to the lack of knowledge about the difficulties that arose during the implementation of the policy. • The financial aspect of this program is an important constraint as the Secretariat of Social Policy does not have its own budget and depends on the other Secretariats for funding. An important lesson is that while the use of databases can help with objectivity, the methodology still needs to rely in field work and other means to reunite more reliable information about the families. For example, the information in the CAD is self-declared and, in Belo Horizonte, some 62,000 families have enrolled in the program but it is estimated that 30% to 40% of those families are not below the poverty line. Indicator 6: Female-headed household action plan Percentage of female-headed households with a dedicated action plan: 68% (goal achieved) Baseline 2011 = 0%; Goal 2013 = 60% There is a problem with the calculation of the percentage in this indicator: the number of families with a dedicated action plan was used to calculate the percentage of female-headed households with a dedicated plan, when in fact it should have been calculated over the number of actual female-headed households in Belo Horizonte. This number has not being mentioned in any of the materials. The correction will probably affect the result of the indicator and the achievement of the goal. It is needed to know how the 2011 baseline was calculated and the universe considered when setting the goal for 2013. 46 There is no information in the borrower’s report on the methodology they use to select the female-headed households or any other evidence of the work to allow for a proper evaluation of this indicator. During the next visit, it should be corrected and clarified. Indicator 7: House rehabilitation Number of rehabilitated homes as a result of the program: 24 (goal not achieved) Baseline 2011 = 0; Goal 2013 = 250 This pilot program for housing rehabilitation did not achieve the expected results, as only 24 houses out of the goal of 250 were rehabilitated. The Municipal Secretariat of Social Policy established a partnership with URBEL to work in this pilot action of house rehabilitation to try to reach 250 low income families. The action only reached 10 houses initially and 14 more houses have their project ready to implement. Those few houses were selected with the help of the social workers who have a good knowledge of the communities and the houses. This pilot project has been difficult to implement due to a series of challenges. Land tenure issues among the target population complicated the process, as did a lack of interest on the part of contractors to undertake small-scale and dispersed works and an increase in project costs. These challenges were further compounded by the fact that housing repair was not part of regular municipal services or programs, thus entailing the development, testing and implementation of a new set of operational and financial procedures. One of the reasons the goal was not achieved was insufficient financial resources, mainly because the rehabilitation resulted more expensive than it was foreseen, due to the low quality of the constructions in the low income communities. Structural problems most times cause the rehabilitation to be more expensive than building a new house. For this reason, the program works with the premise that the cost of rehabilitation cannot be superior to the price of the square meter in the constructions of the MCMV program. These unforeseen issues when planning the component of house rehabilitation and the lack of knowledge intrinsic to a new policy action may have led to set too ambitious a goal for the indicator (250 houses rehabilitated by the end of 2013). It may not be possible to take over this action the way it has been planned but the experience may help thinking of alternative ways and partnerships to assist the vulnerable families with improving their houses. Besides, for the issues exposed above, this action does not seem to be sustainable. Objective C: Strengthen service delivery to all citizens Indicator 8: BH Resolve number of services Number of services rendered at BH Resolve units: 92.064* per month (goal not achieved) Baseline 2011 = 94.678 per month; Goal 2013 = 148.500 per month *in October 2014 Belo Horizonte’s Municipal Secretariat of Modernization created the Integrated Service System in 2010 (Decree 14.136), updated in 2011 (Decree 14.600). The system provides 47 around 950 different services, which are available to the public in-person, by telephone and via the internet. The indicator target was established based on the planned opening of two additional in- person service centers; however, these centers are now not expected to open by mid-2017, according to the borrower’s ICR. Each new center will have 20 counters and is expected to assist 700 clients per day. The delay in delivering the new centers is mainly due to the long analysis to determine their ideal location but finally it has been decided for two of the biggest urban conglomerates, Barreiro and Venda Nova. There were also some issues in finding the two buildings but it has been decided for the use of two government buildings which will be renovated in order to install the two new in-person centers. The three channels are monitored regarding the number of services rendered and the citizen’s satisfaction. In the case of the internet service, the monitoring refers to the web chat service. The main results of the monitoring regarding the in-person services are shown in the following table. In-person services Citizen's Year (monthly average) satisfaction Sep-2010/Dec- 99,323 98,3% 2011 2012 103,186 97,9% 2013 88,664 98,0% Jan/Oct-2014 71,058 97,1% Despite the decrease in the number of services, the team considers there was technological improvement in the last three years. This includes the idea of optimizing the service using available technology to improve efficiency, as in the case of a new pilot project using computer terminals in the service centers where the citizens can be serviced by operators who are available in another center, in order to optimize the time of the attendants. The main lesson regarding this indicator is that the variables interfering with the indicator need to be better understood in the definition of goals regarding customer behavior. An increase in the number of services may not be needed and can be influenced by other service channels and the improvement in the quality of public services. Indicator 9: BH Resolve Citizen’s satisfaction Percentage of users rating the services rendered as good or excellent at BH Resolve units: 97.65% (goal achieved) Baseline 2011 = 0%; Goal 2013 = 90% The rate of satisfied users of BH Resolve (evaluation of services rendered as good or excellent) varied between 97-98% throughout 2014. 48 BH Resolve works with constant training, integration with all sectors of the government and continuous update of information, in order to improve and maintain the quality of the services provided. At the same time, the centralization of the services allows for the standardization of the government services and the possibility to work with statistical data. Policy Area 2: Support green and sustainable practices Objective D: Improve capacity in mitigation of climate change and green development Belo Horizonte is one of the three Brazilian capitals to have a climate change plan and the second to have a reduction plan. The first plan was made by Rio de Janeiro but Belo Horizonte’s is the most complete because it is the only one with an inventory of emissions based on a historical series of 10 years so it is being a model to other cities in Brazil. The plan has 39 monitoring themes. One of these is the reduction effect caused by interventions in the public transport system, such as the substitution of many conventional bus lines with the BRT. The results of the monitoring and all the other materials are available in the internet to facilitate transparency. Transport and sustainable land use (e.g. not allowing the installation of polluting industries) are two of the priorities decided by the Committee. There is a plan to create micro-regions of services in the city, in order to avoid travel, which is expected to have a significant effect on emissions. The vision is a city with minimal travel. A research of origin and destination showed that the reason for most travels could be avoided by providing services over the internet. This has a good potential as 75% of the citizens of the town have access to the internet. Another research showed Belo Horizonte as the first one in the ranking of best cities in Brazil regarding the quality of life. In the opinion of the climate change team, the loan contributed to speed the process of making and start implementing the plan, especially regarding the regulation involved, which gives the needed support to the plan, as it has to be followed by all the sectors of the government. Indicator 10: Climate change action plan Municipal Climate Change Action Plan that integrates and benchmarks existing sector- specific initiatives in solid waste, water, energy and urban forestry sectors with the goal of promoting efficiencies and sustainability: 1 (goal achieved) Baseline 2011 = 0; Goal 2013= 1 The Municipal Climate Change Action Plan has been developed and is being implemented. Its implementation is monitored by the Municipal Climate Change Committee comprised of the Secretary of Environment and the Vice-Mayor, among others. Objective E: Improve capacity in adaptation to climate change (Disaster Risk Management) 49 Indicator 11: Database on water, weather and disasters Consolidated database of: (i) hydrological and climate-related parameters; and (ii) disaster events and damages: Goal achieved Baseline 2011 = 0; Goal 2013 = 1 The hydrological database was up and running between 2012 and 2013, but has not functioned since March 2014 when the contracts with the service provider for maintenance and data transmission expired. It is expected that the contracts will be renewed and the database will be operational again by March 2015. However, the indicator was technically achieved as the system was operational through 2013. The disaster events database (CINDEC) is working as of December 2014. The objective of this database is to attend to internal demands of the civil defense so there is no regular publicity regarding its information. Indicator 12: Early warning system Number of monthly performance reports of the early warning system issued: 12 (goal achieved) Baseline 2011 = 0; Goal 2013 = 12 Monthly reports on the early warning system are issued, despite data collection stations for precipitation and water level being offline. Information from cameras, radar and satellites supplements the system. The early warning system is prior to the monitoring database and independent from the measurements of the volume of rain, which is not operational as the stations are not working. The system is based on weather forecasts; the issuing of a warning does not mean the disaster will occur. The civil defense works in partnership with the Catholic University and the Climatempo project to receive the weather forecasts and has its own center of monitoring and early warning. There is a contingency plan in place and whenever there is much rain the team goes to the critical areas and start the specific procedures in the case of a disaster. The Civil Defense also has a partnership with the COP (Centro de Operações da Prefeitura) which has access to the system of cameras located in the city. Apart from the information provided by the cameras, the early warning system uses all means of communication and networking such as email, text messages and social networks, as well as the TV. The system has some actions of urban drainage to avoid floods and those programs are run by URBEL and SUDECAP. A chart of floods was made in 2009 and is being updated. This mapping used the methodology of “mancha falada” (flood areas based on verbal information) in 2009 and 2010 using satellite images with the participation of the people living in the risk areas. There is also a map of geological risk which is being updated. 50 The main motivation to set up the system in Belo Horizonte was the occurrence of disasters due to excessive rain. There are training sessions for people in areas of risk for flooding situations. The second one was in November 2014 with 100 people. Policy Area 3: Enable socially and fiscally sustainable urban governance Objective F: Strengthen urban governance through results based management (RBM) and participatory urban planning Indicator 13: Results Based Management Percentage of results completed yearly according to schedule: 68.5% (Goal technically achieved). Baseline 2010 = 33%; Goal 2013 = 70% The program covered 170 proposals during the assessment period which are grouped into 40 sustaining projects and 12 areas of results, including social, infrastructure, health, housing, and drainage, among others. While the actual percentage is slightly below the end target, it is considered to have been achieved in 2013. As this year coincides with the signature of the loan agreement, there is no information for the loan period (December 10, 2013 to December 31, 2014). The BH Metas e Resultados program was created in 2009 (Decree 13.568), when the government started a Results Based Management with the objective to promote changes and improvements in the government, as well as improving its capacity of delivering, monitoring and communicating results. The monitoring is made by an Executive Secretariat exclusive for the Program. The Secretariat coordinates the actions of the various sectors of government involved in each area of result. Each project has quantitative goals which have been monitored monthly and regular accounts are made available to all citizens in the government’s website and annual reports are submitted to the municipal House of Representatives. Indicator 14: Community projects in the city’s plan Effective demand of projects decided by the community that are included in the city’s multi- year plan: 72% (goal achieved) Baseline 2011= 0%; Goal 2013 = 25% The participatory regional planning process considered some 2,535 proposals and incorporated 1,816 (71.6%) of them into the city’s 2013-2016 multi-year plan. This result shows the close relationship between the demands of the community and the work of the local government. Most of the proposals of the civil society in the government plan related to mobility, education and health. 51 Belo Horizonte promotes formal participation in the budget since 2011, when 40 territories of shared management were recognized (Decree 14724/2011) and the Committee Participatory Planning was created (Decree 14607/2011). The objective of such policy is to increase and improve the participation of the civil society in the management of the city. Today, there is an impressive number of 575 current instances of people’s participation in the city. Regarding budget, there are two opportunities for participation: the Participatory Regional Planning (PPR) and the participatory budget (Orçamento Participativo – OP), in the versions Regional and Digital. The PPR was made for the first time in 2011 and will happen again in 2015 but even before the PPR there were other participatory mechanisms such as committees, groups and forums of dialogue with the local government. The OP Regional, started in 1993, is made in person while the OP Digital is made on line since 2006. These processes aim at involving the population in the definition of the government’s available budget. Indicator 15: Participation Increase in the number of civil society participants in participatory processes (OP Digital, OP Regional, PPR): the number of participants was 75% below the target (goal not achieved) Baseline 2011 = 10%; Goal 2013 = 15% Civil society participation fell 75 percent from 36,457 in 2011 (34.446 in the PBH ICR) to 8,900 (digital only) in 2013. This is due to an over-optimistic estimation of participation at the time the indicator was established of the capacity of the PBH to promote public participation, as well as an uncharacteristically high baseline in 2011. The team does not know how the goal for this indicator was defined and think it was too ambitious, as their own goal, included in the BH Metas e Resultados program, is the participation of 6% of the population in the OP. The levels of participation since the creation of the program varied over time. For instance, in 2009, the 15th anniversary of the program, there was an effort to complete the delivery of 1,000 projects in time for celebratory events. This contributed to increase participation by 18%. From 2010, many priority infrastructure works took place in the city and, as a consequence, the smaller scale works from the OP were in second plan and the participation decreased. The number of participants in the budget by year is summarized in the following table: 52 Year PPR OP Digital OP Regional Total 2011 9.068 25.378 0 34.446 2012 0 0 25.880 25.880 2013 0 8.900 0 8.900 Total 9.068 34.278 25.880 69.226 Attending the demand of the December mission, the SGP produced a 26 page document with background information and analysis of the reasons why the participation in the PPR and OP processes is decreasing and reporting on the measures taken to improve participation, as follows: OP Regional: • Delays in the implementation or conclusion of the approved projects, mainly due to judicial issues (expropriation and distracts with contractors) and prices which do not reflect the market costs of the works (90% of the building projects are realized at a cost from 10% to 500% higher than budgeted in the project – Annex 5). • The fact that basic infrastructure is no longer part of the OP and those used to correspond to 70% of the approved projects. In part, this is due to the fact that in many suburbs with high participation had obtained the needed basic infrastructure. In the other hand, some of these and many other suburbs still need infrastructure, such as drainage, but because it is not possible to obtain those through the OP, the interest in participating is lost. OP Digital: • Lack of consultation to the public in the selection of projects to be voted in the OP digital in 2011 and 2013. • Insufficient advertisement: in 2013 the TV campaign focused in the action of the government in general, mentioning the OP Digital but not focusing on it. • Starting a new OP Digital without delivering the nine projects approved in 2011 and without finishing the building of the São Vicente square, approved in 2008, where 49.000 electors live (in order to participate in the OP Digital it is needed to be an elector). This interfered in the credibility of the program, which is not yet as well established because it had only two rounds, while the OP Regional had 16 rounds and 75% of project delivery. Actions taken to improve participation • Restructuring the secretariat of shared management (SMAGC Secretaria Municipal Adjunta de Gestão Compartilhada) (Decree 15.539/2014) • Restructuring the Comforça Regional Committee, which monitors and controls the works decided upon by the OP Regional. Circa 700 community leaders participate in the Comforça and since 2010 (Decree 13.319) they have access to the building sites related to the program. 53 • Creation of a Committee of Pending Projects with the executive bodies involved in the works of the OP. The Committee meets weekly to sort out the problems and facilitate the conclusion of these projects and works. • Creation of a Committee to revise the methodology of the OP Digital and increase participation in its next edition. • The creation of a mobile application to vote in the OP Digital. • Increase of 15% in the resources available for the OP 2015/16 in relation to 2013/14 (150 million Reais and 120 million Reais, respectively). • Application for a loan to be used in the pending projects with Banco do Brasil (Bank of Brazil) • Since July 2013 (Law 10.645) it has been authorized to take loans with national and international financial institutions up to 450 million dollars) to be used in the program of government and the participatory budget. • Innovations in the OP methodology starting in the next edition of the OP (2015/2016), based in the demands of the Comforça, technicians of the SMAGC, and other sectors of the government involved in the processes. • Implementation of the OPCA, a new modality for kids and teenagers to decide about projects to within their school, with the object of encouraging citizenship and participation in the-new generations. Sixteen schools and 10,849 students participate in the pilot program in 2014 and shared budget of R$320,000 (R$20,000 per school). The students are thought public budget, including legislation. They accompany all the steps of the development of the proposals to the final delivery of the chosen projects. • Strengthening of the communication, by improving the shared management portal in the internet to include geo-referenced information, press and internal information materials about law, meetings and updates of the OP, interactive maps and municipal events of interest. • Creation of the Secretaria de Comunicação da SMAGC • Customer service via BH Resolve, SacWeb and OP email, responding to 1,725 consultations in 2014. Objective G: Strengthen long-term fiscal sustainability Indicator 16: Decrease in the actuarial deficit Civil servants retirement plan actuarial deficit: 13,762 billion Brazilian Reais (goal not achieved) Baseline 2010 = R$ 6,933 billion; Goal 2013 = R$ 6,857 billion An analysis of the increase in the deficit was prepared by the World Bank staff member who participated in the development of the project from the start and is reflected in the main text of the ICR. 54 Annex 7. List of Supporting Documents Portelo, C. (2013), Official Documents- Loan Agreement for Loan 8169-BR (Closing Package). Washington, DC: World Bank. http://documents.worldbank.org/curated/en/2013/12/18663767/official-documents--loan-agreement-loan- 8169-br-closing-package Portelo, C. (2013), Official Documents- Guarantee Agreement for Loan 8169-BR (Closing Package). Washington, DC: World Bank. http://documents.worldbank.org/curated/en/2013/12/18663666/official-documents--guarantee-agreement- loan-8169-br-closing-package Prefeitura de Belo Horizonte (20xx), Planejamento Estratégico de Belo Horizonte 2030 - A Cidade que queremos - 2ª Versão, Belo Horizonte. World Bank (2014), Brazil - Country Partnership Strategy Progress Report. Washington, DC: World Bank Group. http://documents.worldbank.org/curated/en/2014/07/19962513/brazil-country-partnership-strategy-progress- report World Bank (2013-2014), Brazil - Belo Horizonte Urban Development Policy Loan: P126749 - Implementation Status Results Report: Sequence 01-4 Washington, DC: World Bank. World Bank (2013), Brazil - Belo Horizonte Inclusive Urban Development Policy Loan Program. Washington DC: World Bank. http://documents.worldbank.org/curated/en/2013/05/17769674/brazil-belo-horizonte-inclusive-urban- development-policy-loan-program World Bank (2011), Brazil - Country Partnership Strategy (CPS) for the period FY2012- 2015. Washington, DC: World Bank. http://documents.worldbank.org/curated/en/2011/09/15273914/brazil-country-partnership-strategy-cps- period-fy2012-2015 List of People Interviewed Elbe Oliveira Marino, Chefe de Gabinete da Secretaria Municipal de Finanças Paulo Roberto de Araújo, PBH Marcus Annibal, BH/CIDADANIA Ana Flávia Martins Machado, URBEL Maria Cristina Fonseca Magalhães, URBEL Gelson Leite, SMAGC Helcymara Oliveira Kutova, SMAGC Veronica Campos Sales, SMGC/OP Sônia Mara Miranda Knauer, SMMA Anna Maria Louzada, GVP Délio MAlheiros, Vice-Prefeito Márcio Dutra, SMAGP Arilda Alves R. Barbosa, Secretaria Municipal Adjunta de Gestão Previdenciária (SMAGP) Alexandre Fonseca Dias, SMAGP Ivan Sant’Ana Ernandes, Atest Consultoria / SMAGP Karoline Santos de Araújo, Atest Consultoria / SMAGP Isabela Golçalves, Coordenadoria Municipal de Defesa Civil (CONDEC) Dayan Diniz de Carvalho, CONDEC Juliano Ribeiro Pimenta, Secretaria Municipal Adjunta de Modernização Mariana Cordeiro Santos, Vice-Prefeitura 55 IBRD 38668 BRAZIL 44°00’ VESPA SIA NO 43°55’ BELO HORIZONTE To Tancredo Neves LUZ I A SA NTA L International MUNICIPALITY Riberão RI B E I R Ã O Airport MINAS GERAIS STATE das Neves D A S N EVES MAIN ROADS MAIN CORRIDORS SECONDARY ROADS METRO URBAN AREAS ENDA V END MUNICIPALITY CAPITALS N O VA NO STATE CAPITAL DISTRICT BOUNDARIES N O RT E NO MUNICIPALITY BOUNDARIES 19°50’ 19°50’ 50° 45° 40° GOIÁS BAHIA 15° F.D. Pampulha BRASÍLIA 15° Lagoa da Pampulha Airport o Rodoviári Av. A Goiâna Anel Av. ntonio MATO GROSSO Cristia MINAS GERAIS PA M P U L LHHA NO R D EST N O RD ESTE Carlo DO SUL no s Belo Horizonte ESPÍRITO Av. Metropolitan Municipality 20° (see main map for detail) area 20° AR Á SABAR Machado Vitória Ca rlo s SÃO PAULO To Vitória RIO DE JANEIRO A T LA NT IC São Paulo Rio de Andradas PARANÁ O CEA N . Av Janeiro Luz 50° 45° 40° Av. ro LESTE LES Dom Ped II 44°05’ To Brasília NO R O ES N O RO ESTE 19°55’ 19°55’ Belo Contagem Av . Amaz onas Horizonte Av. Av. B CENT C RO-S E N T RO SUUL mo C O N TA G E M Car . Hom Raja . Do em de Sta Gabe ESTE O EST Av. To São Paulo gna Melo NO VA LI MA os ari Min This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information os Via d shown on this map do not imply, on the part of The World Bank IBIR ITÉ Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 20°00’ 20°00’ IRO BARRE I RO R.B. DE GUYANA SURINAME VENEZUELA French Guiana (Fr.) COLOMBIA ATL A N TIC OCEAN Ibirité BRAZIL BRAZIL See Minas Gerais PERU inset, upper left To Rio de Janeiro BRASÍLIA BOLIVIA 0 1 2 3 4 5 Kilometers CHILE PARAGUAY PA C I F I C BRUMADINHO OCEAN NATIONAL CAPITAL 0 1 2 3 4 5 Miles ARGENTINA STATE BOUNDARIES URUGUAY INTERNATIONAL 44°05’ 44°00’ BOUNDARIES OCTOBER 2011