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: 4 | ARCHIVED on 12-May-2016 | ISR23110 | Implementing Agencies: 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)  Satisfactory  Moderately Unsatisfactory Overall Risk Rating  Moderate  Substantial Implementation Status and Key Decisions 5/12/2016 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 fourth 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, and is now benefitting from earthquake and tropical cyclone coverage from CCRIF for the 2015/2016 policy period. Policy renewal discussions between Nicaragua and CCRIF SPC will take place in May 2016, ahead of the 2016/2017 policy period which starts on June 1, 2016. The Financing Agreement with Honduras has not yet been signed due to fiscal constraints, and the decision to move forward has been on hold pending the availability of excess rainfall coverage, which is expected to be available for the 2016/2017 policy period. CCRIF and the World Bank will continue dialogue on CCRIF membership in May 2016. The World Bank team has been providing technical support to Honduras and Nicaragua to inform the decision-making process in relation to CCRIF participation and opportunities for technical assistance on disaster risk financing and insurance. 5/12/2016 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  --  Moderate  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  --  Low  Moderate 5/12/2016 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) Other  --  --  -- Overall  --  Moderate  Substantial Results 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 0.00 100.00 Date 01-Jun-2014 01-Oct-2015 29-Apr-2016 31-Jul-2021 Overall Comments Nicaragua became a member of CCRIF in July 2015 and is benefiting from catastrophe risk coverage. No covered (insured) events have occurred in Nicaragua since joining CCRIF. As of the date of this ISR, Honduras is not yet a member of CCRIF. 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 01-Oct-2015 29-Apr-2016 31-Jul-2021 Comments Baseline values for the first year of coverage: Nicaragua (for the 2015-2016 policy period): For a US$ 500,000 premium for earthquake coverage, the attachment point (insurance deductible) is $20,958,698. The exhaustion point is $286,748,494 and the coverage limit is $9,926,983. For a US$ 500,000 premium for tropical cyclone coverage, the attachment point (insurance deductible) is $607,577. The exhaustion point is $83,667,096 and the coverage limit is $8,091,944. 5/12/2016 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) 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 01-Oct-2015 29-Apr-2016 31-Jul-2021 Comments By modeled estimates, CCRIF premiums for Nicaragua remain lower than the simulated price for a comparable coverage purchased individually in the market. Information for this indicator will be updated after Nicaragua's policy renewal in May-June 2016. 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 1.43 6.37 18% 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 5/12/2016 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. 5/12/2016 Page 6 of 6 Public Disclosure Copy