Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) LATIN AMERICA AND CARIBBEAN | Central America | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 5 | ARCHIVED on 13-Dec-2016 | ISR23962 | Implementing Agencies: Ministry of Finance and Public Credit, Ministry of Finance Key Dates Key Project Dates Bank Approval Date:18-Jun-2014 Effectiveness Date:01-Jun-2015 Planned Mid Term Review Date:31-Jan-2017 Actual Mid-Term Review Date:-- Original Closing Date:31-Jul-2021 Revised Closing Date:31-Jul-2021 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to enable the access of Honduras and Nicaragua to efficient sovereign risk insuranceassociatedwith tropical cyclones, earthquakes, and/or excess rainfall. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Payment of the entrance fee to the CCRIF for Honduras and Nicaragua:(Cost $4.50 M) Component 2: Payment of annual insurance premium to the CCRIF for Honduras and Nicaragua:(Cost $19.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions 12/13/2016 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) This is the fifth ISR for the Honduras and Nicaragua Catastrophe Risk Insurance Project. The Project was approved by the Board on June 18, 2014. The Financing Agreement with Nicaragua was signed on July 11, 2014, and was declared effective on June 1, 2015. Nicaragua became the first Central American country to join CCRIF Segregated Portfolio Company (SPC), and it has benefited from earthquake and tropical cyclone coverage from CCRIF SPC for the 2015/2016 and the 2016/2017 policy period. The Government of Nicaragua is currently evaluating the possibility of adding excess rainfall coverage. Regarding the IDA credit with Honduras, and given that the 18-month deadline for signing of the Financing Agreement was December 18, 2015 and an extension has not been requested, the Bank will proceed to withdraw the offer of the IDA credit. The World Bank team will continue providing technical support to Honduras and Nicaragua to inform the decision-making process in relation to CCRIF SPC participation and opportunities for technical assistance on disaster risk financing and insurance. 12/13/2016 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Results 12/13/2016 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) Project Development Objective Indicators PHINDPDOTBL  Honduras and Nicaragua as members of CCRIF are eligible for catastrophe risk coverage and have received payment within a month of the occurrence of a covered (insured) event (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 100.00 Date 01-Jun-2014 29-Apr-2016 06-Dec-2016 31-Jul-2021 Overall Comments A payout in an amount of US$500,000 was made by CCRIF SPC to the Government of Nicaragua for the magnitude 6.1 earthquake that occurred on 9 June, 114 km (71 mi) NW of Managua. The payout was made by CCRIF SPC on June 23, 2016, within 14 days of the occurrence of the event. Intermediate Results Indicators PHINDIRITBL  Policies provide increasing insurance coverage and/or lower attachment point (insurance deductible) for a given premium amount (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jun-2014 29-Apr-2016 06-Dec-2016 31-Jul-2021 Comments Nicaragua purchased earthquake coverage for the policy year 2015/16 (baseline) and for policy year 2016/17, selecting similar parameters. Compared to the baseline values, the 2016/17 policy provides an increase in insurance coverage of 0.39%. Nicaragua purchased tropical cyclone coverage for the policy year 2015/16 (baseline) and for policy year 2016/17. Compared to the baseline values, the 2016/17 policy provides an increase in insurance coverage of 12.9%. PHINDIRITBL  CCRIF premiums for Honduras and Nicaragua are lower than the simulated price for a comparable coverage purchased individually in the market (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Y Y Y Y Date 01-Jun-2014 29-Apr-2016 06-Dec-2016 31-Jul-2021 Comments By current modeled estimates, CCRIF premiums for Honduras and Nicaragua remain lower than the simulated price for a comparable coverage purchased individually in the market. 12/13/2016 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed Not P149895 IDA-55300 XDR 7.80 7.80 0.00 0.00 7.80 0% Effective P149895 IDA-55310 Effective XDR 7.80 7.80 0.00 2.50 5.30 32% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P149895 IDA-55300 18-Jun-2014 -- -- 31-Jul-2021 31-Jul-2021 Effective P149895 IDA-55310 Effective 18-Jun-2014 11-Jul-2014 01-Jun-2015 30-Jun-2019 30-Jun-2019 Cumulative Disbursements 12/13/2016 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Honduras and Nicaragua Catastrophe Risk Insurance Project (P149895) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/13/2016 Page 6 of 6 Public Disclosure Copy