Document of The World Bank

FOR OFFICIAL USE ONLY

Report No. 98404--NI

INTERNATIONAL DEVELOPMENT ASSOCIATION

AND

INTERNATIONAL FINANCE CORPORATION

PERFORMANCE AND LEARNING REVIEW

OF THE COUNTRY PARTNERSHIP STRATEGY

FOR

THE REPUBLIC OF NICARAGUA

FOR THE PERIOD FY2013-2017

October 14, 2015 Central American Country Management Unit The International Finance Corporation Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization.

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The date of the last Country Partnership Strategy was November 13, 2012 (Report No. 69231).

FISCAL YEAR January 1 – December 31

CURRENCY EQUIVALENTS

(Exchange rate effective as of April 6, 2015) Currency Unit = Nicaragua Cordobas (NIO)

US$1 = NIO 26.7

ABBREVIATIONS AND ACRONYMS

CPS Country Partnership Strategy EU European Union FY Fiscal Year GDP Gross Domestic Product GNI Gross National Income IADB Inter-American Development Bank IDA International Development Association IFC International Finance Corporation IT Information Technology LAC Latin America and the Caribbean MIGA Multilateral Investment Guarantee Agency MSME Micro Small and Medium Enterprises PPP Public Private Partnerships SDR Special Drawing Rights SME Small and Medium Enterprises US United States WBG World Bank Group WSS Water and Sanitation Services

IDA IFC Vice President: Director: Task Team Leader:

Jorge Familiar J. Humberto Lopez Jovana Stojanovic

Nena Stoiljkovic Lizabeth Bronder Carolina Cardenas

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TABLE OF CONTENTS

I. INTRODUCTION................................................................................................................ 1

II. COUNTRY CONTEXT AND RECENT CHANGES ...................................................... 1

(i) Recent Economic Developments ...................................................................................... 1

(ii) Poverty and Shared Prosperity ........................................................................................ 2

(iii) Progress on the Government’s National Human Development Plan (2012-16) ............. 4

III. SUMMARY OF PROGRAM IMPLEMENTATION ...................................................... 5

Pillar I: Improve Access to Basic Services ................................................................................. 5

Pillar II: Improve Competitiveness and Productivity ................................................................. 8

IV. EMERGING LESSONS .................................................................................................... 10

V. ADJUSTMENTS TO THE CPS AND FUTURE WBG ENGAGEMENT ................... 11

VI. RISKS TO THE CPS PROGRAM ................................................................................... 13

 

 

Annex 1. Revised CPS Results Matrix ......................................................................................... 15 Annex 2: Original vs revised outcomes and indicators ................................................................ 22 Annex 3. Definitions ..................................................................................................................... 26 Annex 4: Portfolio Management ................................................................................................... 30 Annex 5: Gender Equality in Nicaragua ....................................................................................... 32 Annex 6: Projects Approved FY13-15 ......................................................................................... 35 Annex 7: Active Portfolio as of September2015 .......................................................................... 36 Annex 8: Advisory Services and Analytics FY13-17 ................................................................... 37 Annex 9: Active Trust Funds (as of September 2015) ................................................................. 38 Annex 10: Projects Closed in the FY13-15 .................................................................................. 40 Annex 11: IFC Committed Portfolio ............................................................................................ 41 

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I. INTRODUCTION 1. This Performance and Learning Review summarizes progress in the implementation of the FY13-17 joint International Development Association (IDA)-International Finance Corporation (IFC) Country Partnership Strategy (CPS) for the Republic of Nicaragua. The CPS, discussed by the Board of Executive Directors in November 2012, was designed to help foster growth and support the Government’s National Plan for Human Development (2012-2016) through two Pillars: (i) improving access to quality basic services; and ii) increasing competitiveness and productivity. Progress has been made in implementing the CPS, with eight of fourteen outcomes already achieved in the following areas: increasing access to health services for the poor and rural population, enhancing public financial management, improving rural infrastructure, expanding renewable energy generation, enhancing the business climate and competitiveness of Micro Small and Medium Enterprises (MSMEs), and increasing access to finance for Small and Medium Enterprises (SMEs). All other outcomes are on track and are expected to be achieved by the end of this CPS period. 2. Effective CPS implementation reflects the strong partnership between the World Bank Group (WBG) and Nicaragua. The WBG has been active in the country, leveraging funds beyond the original allocation of the IDA envelope by close to 40 percent. In addition, the portfolios of IFC and the Multilateral Investment Guarantee Agency (MIGA) have substantially grown, contributing to the success of the CPS program. The results achieved thus far are also due to strong country ownership and robust implementation, placing Nicaragua among the highest disbursing portfolios in Latin America and the Caribbean (LAC). 3. The CPS objectives remain relevant. Minor adjustments are being made to refine the Results Framework. The CPS is well-aligned with the five year election cycle, with the next elections slated for November 2016. Given the satisfactory pace of implementation, the priorities of the CPS remain relevant and are aligned to the Government’s priorities. Over its remaining period, the CPS will continue to leverage the full bundle of WBG products and services to complement IDA resources and help mobilize other development financing. In particular, it will focus on building scalable programs that can attract additional resources and closely coordinate IDA, IFC and MIGA interventions. The original Results Framework has been updated to include: (i) gender-disaggregated and climate change related data, where possible; (ii) revised outcomes; and (iii) additional IFC activities.

II. COUNTRY CONTEXT AND RECENT CHANGES

(i) Recent Economic Developments1 4. Economic growth has been strong since 2010 averaging 4.8 percent. In 2014, real Gross Domestic Product (GDP) increased by 4.7 percent (year-on-year). The same growth rate was about the same as that observed in 2013 and 2012 when real GDP grew 4.6 and 5.0 percent respectively. Looking ahead, growth is expected to slow slightly in 2015 to a still high 4.4 percent (well above the LAC average and among the highest in Central America), and remain around the same in 2016. A key engine of economic growth has been the manufacturing industry (mainly food

                                                            1 The source of data for this section is the World Economic Prospects, June 2015 (World Bank).

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products and textiles), although construction, mining, fisheries, and general commerce have all been expanding since 2010. The country’s external position has been improving (the current account balance deficit declined from 11.8 percent of GDP in 2011 to 7.1 percent in 2014, and is projected at 6.6 percent for 2015). This improvement is mainly due to a decline in oil prices, with oil imports declining from 12.7 percent of total imports in 2011 to 5.9 percent in the first half of 2015. The sizeable current account deficit is mainly financed by foreign direct investment and aid flows. 5. Prudent macroeconomic management has underpinned the country’s solid economic performance. Nicaragua follows a 5 percent crawling peg regime with the US dollar, a policy that has served well to manage inflation expectations, and in the context of falling food and fuel prices, has contributed to a decline in the inflation rate from an average of 7.2 percent since 2010 to 3 percent (year-on-year) in April 2015, the lowest level since 2010. On the fiscal front, Nicaragua’s fiscal deficit increased slightly in recent years (from 0.2 percent of GDP in 2012 to 1.5 percent in 2014) before improving in 2015 when it is projected at 1.2 percent of GDP. Indeed, in the first half of 2015, the fiscal balance reached a surplus of 0.2 percent of GDP. This improvement was driven by a significant increase in tax revenues (25.7 percent with respect to the same period in 2014, almost doubling the growth rate of a year earlier) and a moderate increase in expenditure. The mirror image of the fiscal stance is the evolution of public debt which decreased from over 60 percent of GDP in 2007 to 46.5 percent in the first half of 2015.2 According to the most recent Debt Sustainability Analysis (November 2013), Nicaragua’s debt stress is assessed to be moderate.  6. Reducing vulnerabilities and increasing productivity remain key challenges. On the macroeconomic front, the decline in oil prices has helped reduce the vulnerability related to the country’s dependence on oil imports, high external current account deficits, and high dependence on Petrocaribe-related aid flows. Nicaragua is also dependent on the concentration of its food exports to very few countries (mainly the United States and Venezuela) and consequently, it is exposed to economic developments in those countries. Recognizing this source of vulnerability, Nicaragua is building buffers in the form of increased international reserves (which reached 19 percent of GDP as of 2015) that may be used in case of negative external shocks. The drought affecting Central America is an additional source of vulnerability for Nicaragua given its dry corridor. Efforts are underway to adapt to climate change and less rainfall in the region, in particular for the agriculture production. On the growth front, given Nicaragua’s low levels of per capita income, higher growth rates are necessary to further reduce poverty and boost shared prosperity. However, aggregate productivity has been declining over the last ten years. This negative trend on the productivity front is constraining the ability of the country to move to a higher growth equilibrium, and calls for additional efforts that result in productivity gains.

(ii) Poverty and Shared Prosperity 7. While there is a lack of recent poverty data to assess current progress, existing indicators point toward a continuation in the downward trajectory of poverty indicators observed over the second half of the past decade. The second half of the 2000s brought a notable

                                                            2 Nicaragua benefited from the Heavily Indebted Poor Country initiative and Multilateral Debt Relieve Initiative which helped reduce the country’s public and external debt-to GDP ratio from roughly 400 percent in 1994 to 145 percent in 2007.

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reduction in poverty and inequality, concentrated mostly in rural areas. Between 2005 and 2009 (the last year with a Household Survey to construct poverty indicators), there was a significant reduction in the poverty headcount of nearly 6 percentage points, reaching a national poverty rate of 42.5 percent, while extreme poverty fell from 17.2 percent to 14.6 percent.3 During the same period, the income of the bottom 40 percent grew at 4.8 percent per year, almost five times as fast as income for the population as a whole (1.02 percent). This progress equals the average regional performance for LAC (4.9 percent) between 2003 and 2012.4 Inequality also decreased, with the Gini coefficient falling from 40.5 percent in 2005 to 37.1 percent in 2009 and was similar in both urban and rural parts of the country. Although the 2014 Living Standards Measurement Survey is still being processed (and will therefore be available to inform the preparation of the new Systematic Country Diagnostic and the Country Partnership Framework to be prepared in 2016/17), WBG projections suggest that poverty has continued to decrease and that the incomes of the bottom 40 percent have continued to grow.5 8. Nicaragua has also made progress in improving health and education indicators,

especially for women. Data from the 2012 Demographic and Health Survey show clear achievements in the reduction of mortality for children under five years of age from 35 to 21 per 1,000 live births (2006-07 to 2011/12) and in the reduction of maternal deaths from 190 per 100,000 live births in 1990 to 100 in 2009. Progress on maternal mortality is largely due to steady improvements in mitigating risk factors, such as the increased numbers of attended births and the percent of women receiving sufficient pre-natal checkups. However, adolescent pregnancy continues to be a critical challenge for the country due to its contribution to maternal mortality and neonatal deaths. While teenage pregnancy rates have decreased over the last decade (from 122 births per 1000 girls aged 15-19 in 2001 to 98.9 in 2013), Nicaragua has the highest adolescent fertility rate in LAC.6 Educational attainment is also improving, albeit at a slower pace. The primary school completion rate has increased from 64.2 percent in 2010 to 77.8 percent in 2014, while the secondary completion rate improved only slightly in the same period from 43.7 percent to 44.8 percent. The gender gap in education continues to favor girls at all levels (Annex 4).   

9. Rural-urban and ethnic disparities remain stark, especially in access to infrastructure services. By 2009, more than 63.3 percent of Nicaraguans in rural areas were officially classified as living below the poverty threshold, compared to 26.8 percent in urban areas. Challenges, thus, remain in terms of reducing poverty and increasing shared prosperity given that most of the poor live in rural areas, and many in remote communities where access to basic services is still constrained by very limited infrastructure. Social and basic service indicators in the rural Atlantic coast regions are significantly lower than in the rest of the country, disproportionately impacting indigenous and Afro-descendant populations. Poverty is also exacerbated by the country’s vulnerability to natural disasters, extreme climate events, and epidemics which all disproportionately affect the poor.

                                                            3 The World Bank Equity Lab. 4 SEDLAC (CEDLAS and the World Bank) and World Development Indicators. 5 World Bank estimations based on SEDLAC (2015). 6 The LAC average is 67 births per 1000 live births for girls ages 15 to 19.

 

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(iii) Progress on the Government’s National Human Development Plan (2012-16) 10. The current Administration took office in January 2012 with an explicit focus on expanding social programs and promoting inclusive economic growth. The current Administration renewed its pro-poor stance and set a clear agenda to increase access to basic services and improve the country’s competitiveness. To further reduce poverty and increase shared prosperity, the Government focused on expanding social programs such as Programa Amor,7 Zero Hunger, and the School Feeding program, among others. To support social programs, the Ministry of the Family rolled out the Family and Community Based Social Welfare Model, which uses inter-sectoral coordination at the local level to better address the multi-dimensional nature of poverty, and employs different poverty exit strategies adapted to family and local conditions. In 2014, the Government approved a law for the prevention of violence against women, which formalized the role of the Ministry of the Family to promote, protect, and restitute rights for women, children and adolescents. It also regulated the creation of family counseling (Consejería Familiar) and family educational workshops (Educación en Valores). As part of the Administration’s municipalization strategy to provide family counseling services and address the needs of the poor, the Ministry continued to roll out its Family and Community Based Social Welfare Model and strengthen its operational capacity, particularly in rural areas, through the creation of offices in each of the 153 municipalities of the country and the 7 districts of the Managua Department. 11. In addition to progress on improving human development outcomes, the Government made progress in laying the foundation for enhancing competitiveness. The Government focused on improving infrastructure, in particular the road network, given its vital role in boosting economic development due to lack of other transport modes. The Government launched a large rural road rehabilitation program, introduced a sustainable road maintenance program, and completed certain key transit routes. These efforts are yet to translate into results. Serious challenges persist, with only 15 percent of the total road network paved and 25 percent of the roads in good or fair condition. Similarly, the Government focused on improving the business environment and reducing red tape. The almost 100 year-old Commercial Code has been revised and is now pending Congressional approval. These changes are expected to strengthen the legal security of companies and their property rights, and generally improve the country’s image vis-à-vis foreign investors.8 Nicaragua also made important strides in reducing red tape, for example, starting a business was made easier by merging the procedures for registering with the revenue authority and with the municipality, while access to credit information was improved by introducing provision of credit scores to banks and financial institutions. Nicaragua also made paying taxes easier for companies by promoting electronic filing and payment of major taxes, an option now used by the majority of taxpayers. These steps are reflected in improvements in the Global Competitiveness Index; however, Nicaragua continues to rank low at 99th out of 144 countries, and is among the lowest in Central America and LAC.

                                                            7 Programa Amor promotes, defends and ensures the restoration of the rights of children, the elderly and the family in socially at-risk situations and brings them education, health, security, sports, culture, and recreation. 8 Amendments to the Commercial Code include, among other, introduction of sole proprietorship as a form of business entity; inclusion of a new company law; update of the regulations for commercial contracts; and strengthening of the MSME special regime.

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12. Planned large investment projects have the potential to boost growth. Changes in Government policies and the regulatory framework since 2010 have helped attract private investments in wind, geothermal, hydro, and biomass electricity generation, somewhat reducing blackouts and improving the system’s stability. Potential new energy projects are expected to further increase electricity production and enhance the country’s competitiveness. In addition, the Government concession to a foreign private investor (HKND Group) for an interoceanic canal has the potential to positively contribute to Nicaragua’s growth rate.

 

III. SUMMARY OF PROGRAM IMPLEMENTATION Pillar I: Improve Access to Quality Basic Services 13. This Pillar seeks to improve educational attainment and the overall health of the population, expand the Government’s water and sanitation programs, and design and implement a results-based public financial management system. Based on the revised Results Framework, of seven outcomes measuring the success of this Pillar, four have already been achieved, and the remaining three are on track and are expected to be achieved before the end of the CPS period. Progress on enrollment in preschool, one of the Pillar’s outcomes, is slower than anticipated due to weak capacity in rural areas given this is a first time engagement in this area. The WBG was too ambitious in expecting to see results under this CPS, and this outcome has been adjusted and replaced with an appropriate milestone to ensure that the necessary steps are taken for results to be achieved under the next strategy period. The WBG continues to support early childhood development, including increasing enrollment in preschool and building capacity in rural areas. The Results Framework has been updated to include revised targets and milestones (Annex 2). 14. Progress has been made in increasing completion rates for primary and lower secondary education and important steps have been made in improving early childhood development. The WBG, together with the European Union (EU) and the Global Partnership for Education Fund, has been supporting the Government’s Education Strategy (2011-15) to increase access to and improve quality of preschool, primary and lower secondary education through the Education Sector Strategy Support Project (P133557) and the Second Education Sector Strategy Project (P126357). Results have been achieved in 40 selected municipalities that had the worst primary education efficiency rates (low retention, high dropout and high repetition rates) and highest poverty levels in the country in 2010 where completion rates for primary (1st to 6th grade) and lower secondary school (7th to 9th grade) respectively increased between 2010 and 2014 from 56.7 to 67.5 percent and from 44.5 to 53 percent. To improve completion rates for primary school, Nicaragua piloted an accelerated primary education program which was rolled out in 15 classrooms, certified over 750 teachers in the multi-grade program, distributed over 1.3 million textbooks and equipped close to 83 percent of schools with desks and whiteboards. To improve the completion rates for lower secondary education, the country focused on the most pressing issues, namely lack of adequate infrastructure and formally trained teachers. To date, nine schools have improved conditions and now have two new or rehabilitated classrooms, learning materials (libraries and information communication technology), and improved water and sanitation services. A university-based certification program for lower-secondary teachers has also been piloted and, 917 teacher-students are enrolled thus far. Although enrollment rates for preschool

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have not improved, the early childhood development program was rolled out nationwide, a unified preschool curriculum was developed, more than 8,000 preschools received learning materials, and more than 4,000 pre-school teachers were certified.  

15. The Family and Community-based Social Welfare Model is showing promising results in improving primary school retention. The Model relies on community-based education workshops, which among other, serve to ensure families are aware of all pertinent social assistance programs and basic services available to them, promote family values and avoidance of risky behavior, and provide professional one-on-one counseling to families at-risk. To date, 17,000 of the 20,000 poorest families have received grants (US$20 per month) for attending the community workshops and agreeing to their Family Improvement Plans. As of October 2014, more than 6,000 families (32 percent of all families) had children attending school, and retention rates increased from 85 percent (2010) to 95 percent (2015). The WBG has been supporting the Family and Community Social Welfare Model through the Social Protection Project (P121779). 16. Access to health services has increased in rural and indigenous territories.9 The WBG program focused on expanding the Community and Family Health Model and, in particular, on outcomes that lead to improvements in maternal mortality. As a result, between 2012 and 2015: (i) institutional deliveries increased from 72 percent to 87 percent; (ii) the number of pregnant women receiving four prenatal checkups increased from 50 percent to 73 percent; and (iii) the number of post-partum women receiving care within 10 days of delivery increased from 32 percent to 58 percent. To help achieve these results, a robust nationwide monitoring system for maternal mortality was put in place to track every pregnant woman and report on post-partum status. Capitation payments were also used to link financing to results of the Community and Family Health Model based on the population of responsibility declared by the Ministry of Health in each municipality and the attainment of performance goals for the respective year (such as institutional deliveries, pre-natal and post-partum care). The WBG also supported the drafting and adoption of the National Adolescent Sexual Reproductive Health Strategy (2014), and more than 6,000 health staff and 3,000 teachers have been trained on adolescent health. In addition, the WBG has been supporting the National Immunization Program by expanding coverage of the population to be immunized, and the percentage of children under one immunized with the Pentavalent vaccine increased from 88 percent in 2010 to 96 percent in 2014. Lastly, 8 hospitals and 32 facilities in the national Health Network were rehabilitated. 17. IFC is supporting the hospital Metropolitano to increase access to high quality medical care. Metropolitano is the only quality-accredited hospital in Nicaragua, and one of the few in Central America.10 In FY15, IFC provided a US$4.35 million loan to support the expansion of the hospital, including the development of the first pediatric hospitalization unit, and the construction of specialized clinics for neuroscience, diabetes, and hemodialysis. The hospital will also expand its Preventive Health Care programs through the construction of an auditorium for seminars and organization of events on various relevant health topics for the benefit of the local community. The expansion of the hospital’s operations will have a strong developmental impact by increasing access to high quality health care, including for low-income segments of the

                                                            9 32 out of 153 municipalities with the lowest health indicators. 10 The accreditation was carried out by the international arm of the United States’ Joint Commission on Accreditation of Health Care Organizations. 

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population by providing discounted services to public sector patients, and acting as a center of excellence for the country and the region with established benchmarks of clinical and patient care.

18. WBG support has been critical in increasing access to sustainable water and sanitation services (WSS) in rural and indigenous areas. The WBG has been focusing on building WSS infrastructure and improving the WSS sustainability chain through supporting institutional strengthening at the central, municipal and community levels. As a result, in rural and indigenous territories, over 68,000 additional people and 44,000 additional people, respectively, now have access to WSS services. Also, by 2015, 48 percent (compared to 25 percent in 2008) of local Water and Sanitation Committees are operating sustainably and have 70 percent of women in decision-making positions, an increase from 39 percent in 2008. The installation of meters in all of the communities, together with capacity building sessions on how to charge volume-based tariffs, were key to enhancing the overall sustainability of the system. The WBG also supported the development of an innovative platform to monitor the performance of rural WSS. More than 7,000 communities have been registered in the Rural WSS Information System, which provides a variety of actors in the WSS sector, ranging from municipal staff to national decision-makers, access to regularly updated and comprehensive information on the quality, coverage and sustainability of rural WSS services. The Rural WSS Information System not only tracks the physical condition of water systems, but is itself a tool for monitoring coverage in rural communities, identifying capacity gaps of rural water service providers and measuring both the quality of water and sanitation services and the effectiveness of available technical assistance. This platform is expected to improve resource allocation in the rural WSS sector by identifying needs and targeting future investments more effectively.11 19. MIGA is also supporting accessible and affordable sanitation, which is critical to the health and well-being of the population. MIGA provided a guarantee of US$11 million, covering an equity investment in Industria Cerámica Centroamericana S.A., as well as a trademark license. The investment is contributing to greater availability of high quality toilets and sinks that have been adapted to the country context, in particular for rural areas.

20. Progress has been made in designing and implementing a results-based public financial management system. The WBG has been supporting the modernization of the public financial management information system by developing and updating the Integrated Administrative and Financial Management System, which will consolidate and integrate all core financial management and administrative processes of the Central Government. To date, the functional and institutional components of the new Integrated Administrative and Financial Management System have been designed. The new system will be a significant improvement for public financial management functions, enabling the Government to improve the formulation of its public policies and programs and increase the efficiency and effectiveness of their implementation through the adoption of monitoring indicators and results-based management. Recognizing the role that reliable data plays in a results-oriented public financial management system, the Government has requested support to modernize and strengthen the capacity of the National Statistical Agency. Specifically, the WBG support will include the design and

                                                            11 The data collection system is adapted for Android cell phones and tablets. Through the data collected by the Rural WSS Information System, it is possible to quantitatively assess the state of water systems, sanitation practices and facilities, coverage, and capacity gaps in rural WSS providers.

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implementation of a digital Multi-Purpose Cartography, the development of the National Statistical Agency’s capacity to edit and update the cartography periodically, and the acquisition of technological infrastructure needed for statistical surveys, such as a national census. Pillar II: Increase Competitiveness and Productivity 21. This Pillar seeks to support the expansion of rural infrastructure, increase renewable energy production and agricultural productivity, and improve the investment climate and access to finance. Of the seven outcomes in the revised Results Framework measuring the success of this Pillar, four have already been achieved in increasing access to telephone and internet services, expanding renewable energy sources, improving farmer productivity and increasing MSME sales. The remaining three outcomes are on track and are expected to be achieved before the end of the CPS period. An outcome related to improving productivity and producer income in one key export crop was replaced by a more realistic outcome related to increasing productivity levels of farmers, given that the planned IFC-World Bank Agriculture Competitiveness Project did not materialize and focus remained on implementing the Second Agricultural Technology Project (P087046). The Results Framework has been updated to: (i) include two new outcomes to reflect the achievements of projects that closed under this CPS and that were omitted from the original matrix; (ii) drop one outcome; and (iii) revise targets and milestones as needed (Annex 2). 22. During this CPS period, access to rural roads, telephone and internet services increased significantly in targeted areas. The WBG has continued implementing the successful and scalable model for investment and maintenance of rural roads through the Community Modules for Adoquines,12 which has proven to be an effective instrument to generate jobs for vulnerable communities, including women. To date, 410 km of rural roads have been constructed, more than 280 Community Modules for Adoquines created, and more than 900 people currently have short-term employment, of which 34 percent are women. Over 9,000 short-term jobs were created, providing people with skills and the ability to look for employment elsewhere. In addition, 52 micro-enterprises were established to carry out routine maintenance of 3,200 km of rural roads. Similarly access to telephone and internet services increased. The WBG supported the installation of 67 telecom towers and satellite stations in rural areas and the Caribbean coast. As a result, in the period from 2008 to 2015, access to telephone services increased from 37 to 117 fixed and cellular phones per 100 people, access to internet increased from 2.8 to 16.5 subscribers per 100 people, and the retail price of internet service decreased from US$18 to US$11.99 (per Mbit per month).13 23. The CPS program supported the Government’s strategy to increase private investments in renewable energy. IFC continued its US$50.5 million investment in the San Jacinto geothermal power plant that was initiated under the previous CPS. The power plant has been operational since February 2013 and has a renewable energy generation capacity of about 60 megawatts. MIGA provided guarantees in the amount of US$16.3 million for the Eolo wind farm, which has been operational since December 2012 and has about 44 megawatts of renewable energy generation capacity.

                                                            12 Modules for Adoquines are cobblestones, concrete-like paving blocks that are precast in an offsite factory location, with raw materials such as cement, fine aggregates, coarse aggregates, filler, and water. 13 Data is for 108 municipalities.

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24. Productivity levels of farmers increased by enhancing agricultural technology innovation and adoption. More than 33,000 producers participating in agricultural and forestry extension services adopted at least two new production and/or processing technologies; more than 3,000 producers were trained in food processing, business administration and marketing; and more than 1,400 producers of 30 cooperatives produced certified seed of basic grains. Overall, in the period from 2005 to 2013, productivity indices of participating farmers, of which about 25 percent were women, increased on average by 16 percent. Also, in the same period, crop production significantly increased from 1,800 to 4,728 metric tons. To strengthen public sector service provision in agriculture, Nicaragua established a National System of Agricultural Innovation that includes a National Genetic Seed Center, three Food Safety Laboratories, and a credit line (US$3 million) for Seed Producers.

25. IFC and MIGA have also been contributing to increasing agricultural productivity. With an investment of US$15 million, IFC is supporting Montelimar to increase its annual production of sugar from 33kton to 67kton and improve irrigation and other infrastructure in the field, among other activities. IFC and the Global Agricultural and Food Security Program, together with the Inter-American Development Bank (IADB), Ecom, Exportadora Atlantic, and Starbucks provided a US$30 million package of financing to farmers for the renovation of over 5,000 hectares of coffee plantations affected by the coffee rust disease in Nicaragua. The investment is expected to help mitigate climate change by deploying a scalable model of climate-smart renovation that could be replicated by other countries and coffee traders. MIGA provided guarantees in the amount of US$49 million to Ecoplanet Bamboo, a market leader in developing commercial-scale bamboo plantations, to supply a sustainable alternative for Fortune-500 and other timber-dependent companies that currently rely on the harvesting of natural forests. The company is expected to expand by purchasing degraded land and converting it into fully functioning ecosystems that support sustainable plantations. 26. Progress has been made in improving the business climate, increasing competitiveness and access to financial services of MSMEs. In particular, the time needed to start a business decreased from 39 days in 2009 to 13 days in 2015, thanks to streamlined procedures at the one-stop Investment Promotion Agency and the Commercial Registry. The processing time for issuing health and food permits decreased respectively from six months to 2.5 months and from 15 days to 10 days, thanks to newly acquired equipment for more efficient safety testing of consumable products. Moreover, new equipment for the National Metrology Lab is expected to improve its standardization services and allow Nicaraguan firms to trade and export consumable products more easily. The WBG also focused on addressing internal constraints preventing Nicaraguan MSMEs from being competitive, such as their lack of technical skills and access to finance. To that end, matching grants amounting to US$5.5 million were provided to MSMEs in five strategic productive sectors: food agribusiness, wooden furniture, clothing textiles, leather goods, and artisan products. The grants were put towards both small equipment and technical assistance to improve skills and quality of products. As a result, more than 600 MSMEs increased sales by an average of 150 percent. Improvements to the business climate will be further advanced by the recent revision of the almost 100 year-old Commercial Code.

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27. Improvements were also made in strengthening cadastral services, land regularization, and property registration. The integrated cadaster registry information system is operational in Chinandega and will be rolled out in Managua in 2016. To date, more than 34,000 families have received legal property documents and more than 20,000 titles have been issued, of which 50 percent to women or couples jointly. 28. IFC has continued committing resources for the financial sector. Between 2012 and 2015, IFC committed US$207.6 million in the financial sector across five clients to increase credit lines in the trade and housing sectors, and expand lending to SMEs and agri-business. To date, the number of SMEs reached with financial services increased from 1,152 to 1,450. Portfolio Performance 29. Progress on CPS outcomes has been accompanied by high disbursements and satisfactory implementation. The current active portfolio in Nicaragua consists of 12 projects (including a regional project and two trust-funded activities) totaling US$430.49 million in net commitments, of which US$270.72 remain undisbursed (as of September 1, 2015). This is complemented by US$12 million in trust funds (Annex 7). The average fiscal year disbursement ratio increased from an already high 28 percent in 2013 to 36 percent in 2015, well above regional averages. In terms of volume, results are also significant. Disbursed funds nearly doubled in the same period, from US$45.7 million in 2013 to US$81.9 million in 2015, reaching a total of US$202 million, well above any other Central America country.14 The overall quality of the portfolio is satisfactory or moderately satisfactory, and no commitments are presently at risk or in problem status. These results are mainly due to concerted efforts and close supervision by the Ministry of Finance and the WBG, and an approach which promotes early identification of, and response to, implementation problems. This vigilant supervision has led to good results and rapid disbursements (Annex 4). 30. IFC’s and MIGA’s portfolio have grown significantly under this CPS. In the last three years, IFC invested US$207.6 million in the financial sector across five clients, US$27 million in four agribusiness projects in coffee, sugar and forestry (two advisory services and two investment projects), US$7 million in micro financing to rural and agribusiness sector, U$5 million committed in equity in the mining sector, and US$50.6 million (out of the total of US$160.3 million) in a geothermal plant.15 IFC’s investments in Nicaragua (on an original commitment basis) have grown from 11 projects totaling US$166.9 million in 2012 to approximately US$237.1 million gross investment (US$141.6 million for IFC’s own account). IFC’s committed portfolio as of September 1, 2015 is US$124.9 million, of which US$94.1 million is outstanding. MIGA’s gross exposure more than doubled in the same period, from US$34.9 million to US$76 million.

IV. EMERGING LESSONS 31. Relevant lessons learned continue to shape and inform the WBG’s engagement in Nicaragua. The following key lessons have emerged from the CPS implementation to date.

                                                            14 Excluding Development Policy Operations. 15 Part of the financing for the geothermal plant was committed under the previous CPS, however the investment was fully disbursed under this CPS.

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Leveraging additional resources to finance well designed programs may foster better

results with modest resources. Given the limited IDA allocation, joining forces with other donors is critical to achieving long-term results. For example, the Rural Roads program leveraged more than US$300 million of financing. The WBG, especially in countries where the sector relies on donor financing, can catalyze transformational change when it maintains sector best practices as top priorities, laying the groundwork for positive institutional change and additional donor financing.

Developing monitoring and evaluation systems is critical for achieving results. Lack of good quality data hampers effective decision-making and efficient resource allocation, thus limiting results. A recent example of creating a robust maternal mortality monitoring system demonstrates that, coupled with adequate and appropriate measures, monitoring and evaluation can contribute to battling critical issues such as maternal mortality.

Promoting women’s participation may have a transformative impact in eradicating extreme poverty and increasing shared prosperity. For example, the WBG supported the participation of women in the community-run adoquines paving tasks, as Community Modules for Adoquines’s presidents, works supervisors, treasurers, traffic controllers, and pavement joint fillers. Besides the short-term employment opportunities that were created for women (employment for women rose by 15 percent), WBG-financed interventions contributed to increased income, technology transfer, skills building and their agency enhancement to make effective choices and transform those choices into desired outcomes. Women participants reported increased self-esteem, self-confidence, decision-making capacity, leadership and assertiveness as a result of acquiring new skills and know-how and participating in public spheres of community engagement. 16

Building institutional capacity at the regional and territorial level will be critical in ensuring smooth implementation and achievement of development objectives in rural areas and the Caribbean coast. Although Nicaragua has an excellent track record in implementing WBG projects, in some instances, in particular in the Caribbean coast, significant implementation delays occur due to low institutional capacity and availability of suppliers. Going forward, it will be important to target and train early on relevant staff supporting WBG projects, and adapt project designs and procurement methods to the capacity and availability of suppliers.

 

V. ADJUSTMENTS TO THE CPS AND FUTURE WBG ENGAGEMENT 32. The overall CPS strategic framework remains valid and relevant, and the CPS will continue to take full advantage of leveraging and bundling WBG instruments, and scaling-up resource mobilization. In light of the satisfactory performance and strong partnership that was built under this CPS, the objectives of the WBG strategy remain relevant and unchanged. Only a few outcomes (highlighted above under each Pillar) and indicators have been modified to better reflect the focus and implementation pace of WBG. To date, a total of US$335 million was approved in new lending, including US$90 million in trust-funded operations (Annex 4). This volume of lending was made possible by leveraging the IDA allocation with additional resources

                                                            16 Based on the Impact Evaluation of Rural Roads Project in Nicaragua. Impacts on Welfare and Education, September 2013 and a qualitative study focused on effects of women’s participation in roads works on their agency (Casabonne, et al 2015).

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(equivalent to about 40 percent of the IDA allocation). With these lending volumes, commitments have been maintained at a level similar to those in 2013, something that in turn facilitated continued strategic engagement in critical sectors (such as education and food security), and the scale-up of well performing programs (such as the rural roads program and the regional catastrophe risk insurance facility program). The lending program for the remainder of the CPS period will depend on the availability of resources. The WBG will continue with the implementation of the existing portfolio and scale up the well-performing Second Education Sector Strategy Project (P126357) to further support pre-school, primary and lower-secondary education, and consolidate results achieved to date. IDA and IFC will also jointly support Nicaragua in its effort to unlock geothermal potential by mitigating risks associated with the exploration phase and helping to leverage financing for geothermal development through Public Private Partnerships.  

33. IFC expects to expand its current engagement to additional sectors while MIGA will seek opportunities in the financial sector. IFC will continue its program of credit lines in the trade sector, agribusiness-finance and SME lending, while looking for opportunities in other sectors, such as higher education, where IFC could complement IDA work. MIGA will also be open to opportunities to support foreign investments in the financial sector.

34. Climate adaptation and disaster risk mitigation are central to the CPS with several initiatives already underway or under preparation. The WBG is formulating a multi-sectoral development approach to climate adaptation that is aligned with IDA17 commitments. A draft report is expected to be presented at the IDA17 mid-term review in November 2015. Following a regional disaster risk assessment of water system, the Government is now mainstreaming climate change in rural water supply sector development frameworks, policies, and investment tools. This will be particularly important for the poor, women and children, as they tend to be the most vulnerable to climate variability and the effects of climate change on water supplies. Further, the WBG will promote climate information and early warning systems to support climate-resilient development, particularly in the dry corridor, and expand demarcation of protected areas. Lastly, the first climate-resilient rural water supply systems will be piloted under this CPS, providing important lessons and tools to scale up or expand similar projects and activities.

35. The WBG will also employ its analytical expertise to complement the CPS program. Responding to the Government’s need to increase efficiency and effectiveness of social expenditures, the WBG is undertaking a Social Expenditure and Institutional Review to: (i) analyze resource allocation to safety nets, pensions, labor market policies, health, education, and subsidies; and (ii) assess the institutional environment for policy formulation in these sectors. This work will provide concrete policy recommendations to maximize the poverty reduction impact of social interventions. The WBG will also carry out a number of technical assistance activities to identify constraints and opportunities in the agriculture sector and strengthen rural WSS services. Nicaragua will also benefit from other regional Programmatic Approaches, including School Drop-outs Causes and Consequences, Enhancing Disaster Risk Management, Central America Energy Assessment, Trade Facilitation and PPPs (Annex 6). 36. Implementation of the CPS will benefit from an efficient division of labor among key development partners, as well as more coordinated programs among donors. Key WBG partnerships in Nicaragua include: (i) in the education sector, the EU and Global Program for

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Education; (ii) in public financial management, the IADB and EU; (iii) in the WSS sector, Switzerland and Spain; (iv) in roads and transport sector, Japan; and (v) in agriculture, the Global Agricultural and Food Security Program.

VI. RISKS TO THE CPS PROGRAM  

37. The overall risk to the achievement of the development objectives remains moderate. The risks to the CPS Program are summarized in Table 1. The partnership between the Government and the WBG is strong, and is based on a fluid dialogue that emphasizes: (i) WBG interventions in areas with strong Government commitment; and (ii) concerted efforts from both sides to address implementation bottlenecks. The following areas are assessed as the key risks for the achievement of the CPS development objectives:

Table 1: Risks to the Nicaragua CPS Program Risk Categories Rating

1. Political and governance Moderate 2. Macroeconomic Moderate 3. Sector strategies and policies Moderate 4. Technical design of project or program Moderate 5. Institutional capacity for implementation and sustainability Substantial 6. Fiduciary Substantial 7. Environment and social Moderate 8. Stakeholders Moderate 9. Other Not applicable Overall Moderate

The two key risks to successful implementation of the CPS program relate to capacity

constraints, particularly in rural and remote areas, and the fiduciary environment. For example, objectives pertaining to increasing primary and secondary completion rates may be affected given that the majority of targeted municipalities are in underserved areas where capacity is weak. To mitigate this risk, the WBG program has been designed to engage in areas where there is strong commitment for reforms, such as the education sector, given the Government’s ongoing pledge to ensure education for all children. Also, risks are mitigated by integrating institutional strengthening components into new operations, particularly at local levels. Although procurement risk is considered substantial, rigorous attention to fiduciary management, including annual training on procurement, financial management and disbursement procedures for Government staff, proved effective and will continue to be the main tools for mitigating this risk. The WBG will also focus on strengthening control systems in project operational manuals, and utilizing external audit arrangements.

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During this CPS period, Nicaragua has been spared from natural hazards. However this risk remains valid given the country’s vulnerability to the adverse effects of earthquakes, hurricanes and other major hydro-meteorological events, such as excessive rainfall. The occurrence of such natural hazards may reverse the gains already achieved and threaten the achievement of remaining development objectives under this CPS. The WBG continues to support disaster risk management efforts through trust funds and analytical work. In addition, the new IDA mechanism, Immediate Response Mechanism, has been built into all new operations in the portfolio to provide fast disbursing funds in the event of a natural hazard. Nicaragua has also joined the Catastrophe Risk Insurance Facility and now has sovereign risk insurance associated with tropical cyclones and earthquakes, while insurance for excessive rainfall is expected to become available in 2016.

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Annex 1. Revised CPS Results Matrix

 

Country Dev Goals

CPS Outcomes Milestones Program instruments

Pillar I. Improve Access to Quality Basic Services Access to basic services, including education, health, and water and sanitation is critical for improving human development outcomes of the population and especially the poor. Nicaragua remains one of the poorest countries in LAC and ranks 132 out of 187 countries on the United Nations Development Program Human Development Index. Although Nicaragua has made improvements in social indicators, considerable challenges remain, especially in rural areas. Additional efforts will be required to address the low levels of educational attainment, poor quality of services and limited infrastructure in education, health, water and sanitation, further impacted by extreme weather and climate events. WBG support is focused on addressing these critical challenges as well as helping Nicaragua improve the formulation of its public policies and programs and increase the efficiency and effectiveness of implementation through the adoption of monitoring indicators and results-based management. More educated population.

1. Increase in the completion rate of primary education (1st to 6th grade) in targeted municipalities:

Baseline (2010): Combined: 56.7% Girls: 58% Boys: 54%

Target (2017): Combined: 75% Girls: 77% Boys: 74%

Current (2014): Combined: 67.5% Girls: 69% Boys: 66%

ON TRACK

2. Increase in Grade 9 (last year of lower

secondary education) completion rate in targeted municipalities:

Baseline (2010): Combined: 44.5% Girls: 45%

1. Early Childhood Development Program rolled out nationwide. Achieved (2013)

2. System to evaluate Early Childhood Development outcomes in place and Operational. (2016)

Underway. The evaluation system has been designed and is expected to be piloted in the first quarter of 2016.

3. Textbooks and workbooks for primary school students distributed:  

Baseline (2010): 0 Target (2015): 1.3 million Actual: 1.3 million

Achieved (2014)

4. Primary schools in targeted municipalities equipped with furniture:

Baseline (2010): 63% Target (2016): 83% Current (2014): 73%

Underway. The last batch of furniture is expected to be distributed by April 2016, following the bidding process which was recently completed in September 2015.

Financing Ongoing: Second Education

Sector Strategy Project (P126357)

Education Sector Strategy Support Project (P133557)

Social Protection Project (P121779)

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Boys: 43% Target (2017):

Combined: 57% Girls target: 57% Boys Target: 57%

Current (2014): Combined: 53% Girls current:54% Boys current:52%

ON TRACK

5. Core schools (1st to 9th grade) with facilities for lower

secondary education improved in targeted areas: Baseline (2010): 0 Target (2017): 30 Current (2015): 11

Underway. 24 core schools are under rehabilitation and completion is expected in the first quarter of 2016.

6. Certified teachers for preschool, primary and secondary

education increased: Baseline (2010): 0 Target (2016):

Preschool: 1,600 Primary: 1,000 Secondary: 700

Current (2014): Preschool: 1,260 Primary: 750 Secondary: 0  

Underway. The second cohort of preschool and primary teachers have been selected and enrolled in the certification program. Also, 917 teachers are enrolled in the certification program for lower-secondary education. All certification is expected to be completed by September 2016.

7. 20,000 families receive grants (US$20 per month) based on

compliance with attending the community workshops and agreeing to their individual Family Improvement Plans. (2016) On track: as of July 2015, 17,000 families received grants.

Healthier population

3. Increase in percentage of institutional deliveries in targeted municipal health networks:

Baseline (2011): 72% Target (2015): 86% Current (2015): 87%

8. Capitation payments linked to results of Community and Family Health Model.

Achieved (2013): Capitation payments are based on the population of responsibility declared by the Ministry of Health in each municipality and the attainment of performance goals for the respective year (institutional deliveries, pre-natal and post-partum care).

Financing Ongoing: Improving

Community and Family Health Care Services Project (P106870)

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ACHIEVED 4. Increase in percentage of post-partum

women receiving postnatal care: Baseline (2011): 32% Target (2015): 55% Current (2015): 58%

ACHIEVED

5. Increase in percentage of children less than

one year old immunized with the Pentavalent vaccine in targeted municipal health networks:

Baseline (2011): 88% Target (2014): 98% Current (2015): 98%

ACHIEVED 6. Increase in sustainable access to water

supply and sanitation services in rural, indigenous:

Baseline (2008): Water: 0 Sanitation: 0

Target (2017): Water: 45,000 Sanitation: 47,000

Current (2015): Water: 37,000 Sanitation: 40,000

ON TRACK

9. Robust monitoring system for maternal mortality in place.

Achieved (2013): A robust nationwide monitoring system for maternal mortality is in place which tracks every pregnant woman and reports on post-partum status.

10. National Adolescent Sexual Reproductive Health Strategy

adopted for reducing teen pregnancy and risk behaviors. Achieved (2014)

11. Health staff and teachers trained on adolescent health:

Baseline (2013): 0 Target (2016):

Health staff: 6,700 Teachers: 3,200

Current (2015): Health staff: 6,600 Teachers: 3,000

On track. 12. Health personnel trained on quality of care increased in 66

targeted municipalities: Baseline (2015): 0 Target (2017): 250 Current (2015): 0

Underway. First training in quality of care slated for November 2015 and the second in May 2016.

13. Schools participating in the children fluoridation program

increased: Baseline (2015): 0 Target (2017): 2,500 Current (2015): 0

Underway. All fluoridation program activities were initiated in June 2015, and the first cohort of 2,500 schools is expected to take part in the children fluoridation program by September 2016.

Sustainable Rural Water Supply and Sanitation Sector (P147006)

Adaptation of Water Supplies to Climate Change Global Environment Facility (P127088)

Financing closed: Greater Managua

Water and Sanitation Project (P110092)

Rural Water Supply and Sanitation (P106283)

Knowledge: Vital Statistics

(Trust Fund) South-South on

Results Based Financing Nicaragua-Argentina exchange

Strengthening Rural WSS Sector Institutional Policy and Planning Capacity Technical Assistance (P132171)

Monitoring Country Progress in Rural Water and Sanitation

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14. Rural WSS Strategy approved.

Achieved (2013). 15. Rural Water and Sanitation Information System established

and used to monitor WSS quality and sustainability. Achieved. The System was established in 2011 and has since been used to monitor the sustainability of the Municipal Water and Sanitation Units in more than 7,000 communities.

16. Pilot climate-resilient rural water supply systems designed. (2016) Underway. The technical study for climate-resilient rural water supply was completed and the contract for design was awarded in June 2015. The design is expected to be completed in the first quarter of 2016.

More evidence-based spending decisions

7. Multi-year sectoral strategy informs the budget, as measured by an improvement in the Public Expenditure and Financial Accountability Indicator # 12:

Baseline (2010): C Target (2017): B+ Current (2015): B+

ACHIEVED.

17. The application of the multi-annual perspective Medium-Term Budget Framework (Marco Presupuestal de Mediano Plazo) is mandatory for all Government entities at the Central Government level. Achieved (2013).

18. Education Strategy for 2012-2015 fully costed. Achieved (2015).

Financing Ongoing: Public Financial

Management Modernization Project (P111795)

Knowledge: Social Expenditure

and Institutional Review (P146907)

Public Expenditure and Financial Accountability review (P146093)

Pillar II. Increase Competitiveness and Productivity To complement its human development strategy, Nicaragua needs to accelerate economic growth and improve incomes. Despite relatively high levels of investment and gradual improvements in educational attainment, Nicaragua’s growth remains moderate and productivity levels low, constraining the country to move to a higher growth equilibrium necessary to reduce poverty and boost shared prosperity. Nicaragua’s moderate growth and low productivity are largely attributed to the still large infrastructure needs (for example, low quality of road infrastructure, low telephone and penetration rates, high energy prices), low agricultural productivity, and weaknesses in the investment climate, including low access to credit, red tape, and weak land tenure, among other.

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Improve infrastructure

8. Increase in the number of rural people with access to an all-season road:

Baseline (2011): 945,000 Target (2017): 1,019,000 Current (2015): 989,162

ON TRACK

9. Increase in access to telephone services

(fixed line and cellular phones per 100 people) and to internet services (subscribers per 100 people) in rural areas:

Baseline (2008): Telephone: 37.83 Internet 2.8

Target (2015): Telephone: 117 Internet: 16.5

Current (2015): Telephone: 117 Internet: 16.5

ACHIEVED

19. Rural roads constructed: Baseline (2011): 0 Target (2017): 510km Current (2015): 420km

On track 20. National rural roads program designed with transparent road

selection mechanisms. (2016) Underway. The contract for the design of the program was signed in May 2015 and is expected to be completed by May 2016.

21. Short-term employment created for the Modules for Adoquines (number of jobs):

Baseline combined and female (2010): 0 Target (2017):

Combined: 1,200 Female: 400

Current (2015) Combined: 929 Female: 300

On track 22. Telecom towers and satellite stations installed in rural and

indigenous areas: Baseline (2012): 0 Target (2015): 67 Current (2015): 67

Achieved

Financing Ongoing: Rural Roads

Infrastructure Improvement Project (P123447)

IFC Investment in San Jacinto plant

MIGA Guarantee in Eolo Wind Farm

Financing Closed: Fourth Roads

Rehabilitation and Maintenance Project (P083952)

Rural Telecom Project (P089989)

Hurricane Felix Emergency Recovery project (P108974)

Knowledge: Nicaraguan Water

and Sewerage Enterprise Modernization Strategy

Advancing Gender Agency in LAC: Experiences from the Transport Sector

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10. Additional 100MW of renewable energy in the system: Geothermal: San Jacinto plant operating since December 2012 with capacity of 59MW Wind power: EOLO plant operating since February 2013 with capacity of 44 MW

ACHIEVED

Increase agricultural productivity

11. Increase in crop production by farmers benefitting from technical assistance programs of the Nicaraguan Institute of Agricultural Technology:

Baseline (2005): 1,800 metric ton Target (2014): 4,000 metric ton Current (2014):4,728 metric ton

ACHIEVED

23. Producers adopting at least two new production and /or processing technology:

Baseline (2005): 0 Target (2013): 33,000 Current (2013): 33,000

Achieved

24. Producers in certified seed production increased: Baseline (2005): 0 Target (2013): 1,435 Current (2013): 1,435

Of which 185 are women and 118 are indigenous Achieved

25. Certified seed availability increased: Baseline (2005): 200 metric tons Target (2013): 369 metric tons Current (2013): 369 metric tons

Achieved

26. Producers trained in food processing and/or business administration and marketing:

Baseline (2005): 0 Target (2013): 3,200 Current (2013): 3,200

Achieved

Financing closed: Second Agricultural

Technology Project (P087046)

Knowledge: Agriculture Price

Risk Reduction (P144462)

Agriculture Public Expenditure Review (P152101)

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Improve investment climate and access to finance

12. Increase in MSME sales by 150%: Baseline (2009): 0 Target (2017): 600 Current (2015): 600

ACHIEVED

13. Increase in the number of people, microenterprises, and SMEs reached with financial services:

Baseline (2012): 62,152 Target (2017): 85,200 Current (2015): 81,815

ON TRACK

14. Reduction in the number of days to a

register a new business: Baseline (2012): 39 days Target (2017): 10 days Current (2015): 13 days

ON TRACK

27. National metrology laboratory improved with new equipment, capacity and methods to conduct tests and standardize measurements in the productive sector. Achieved (2013)

28. US$5.5 million in matching grants and technical assistance provided to MSMEs. Achieved (2013)

29. Commercial code updated. Achieved (2014), although pending Congressional approval.

30. New regulatory institution for microfinance established and operating with adequate regulatory framework. Achieved (2014)

31. Land titles issued:

Baseline (2012): 0 Target (2017): 30,000

Target women or couples jointly: 15,000 Current (2015): 21,390

Current women or couples jointly: 11,000 On track

32. Volume of MSME loans outstanding increased:

Baseline (2012): US$71.3 million Target (2017): US$160 million Current (2015): US$147.4 million

On track

Financing Ongoing: Second Land

Administration Project (P121152)

IFC Credit Lines – trade, microfinance, housing, small supplier finance

Financing Closed: Micro, Small and

Medium Enterprise Development Project (P109691)

Knowledge: Country Economic

Memorandum (P123253)

Investment & Export Promotion Technical Assistance Institutional Development Fund (P131210)

IFC-World Bank Doing Business Technical Assistance

Consumer Protection Technical Assistance (P126916)

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Annex 2: Original vs revised outcomes and indicators

Original outcome and indicator Revised outcomes and indicator Description

PILLAR I: IMPROVE ACCESSES TO QUALITY BASIC SERVICES Increase in the coverage of preschool

education (ages 3-5): Gross enrollment rate in preschool (ages 3-5) increase from 55% in 2011 to 65% in 2017.

Increase in the completion rate of

primary education: Baseline (2010): Girls: 81% Boys: 69% Combined: 75% Target (2017): Girls: 87% Boys: 83% Target: 85%

Quality of Education in primary and lower secondary improved as measured by national standardized tests: Increase in the percentage of Grade 9 students achieving advanced or above proficiency levels standardized evaluations from 4.4% to 9% in Math and from 37.4% to 44% in Spanish in 2010 and 2017, respectively.

Replaced with a milestone.

Revised to read as follows: Increase in the completion rate of primary education (1st to 6th grade) in targeted municipalities: Baseline (2010): Combined: 56.7% Girls: 58% Boys: 54% Target (2017): Combined: 75% Girls target: 77% Boys target: 74% Revised and moved to milestones.

The WBG was too ambitious in expecting to see results under this CPS, and this outcome has been adjusted and replaced with an appropriate milestone, as follows: System to evaluate Early Childhood Development outcomes in place and Operational by 2016. The target values have been revised downwards given that the baseline values have also been corrected and revised downwards due to new available data. The outcome was moved to milestones and revised to reflect the relevant WBG program related to improving quality of education, as follows: Certified teachers for preschool, primary and secondary education increased: Baseline (2010): 0 Target (2016): Preschool: 1,600 Primary: 1,000 Secondary: 700

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Added: Increase in Grade 9 (last year of lower secondary education) completion rate: Baseline (2010): Combined: 44.5% Girls (2010): 45% Boys: 43% Target (2017): Combined: 57% Girls: 57% Boys: 57%

Added as the core outcome to measure relevant WBG support.

Percentage of institutional deliveries in targeted municipal health networks Baseline (2011): 72 Target (2014): 86

Percentage of children less than one year old immunized with the Pentavalent vaccine in targeted municipal health networks Baseline (2011): 88 Target (2014): 98

Once the adolescence strategy is completed agreed Target Outcomes will be added to the Results Matrix for the Progress Report.

No change. No change. Revised and moved to milestones. Added: Increase in percentage of post-partum women receiving postnatal care within 10 days of delivery in targeted municipal health network Baseline (2011): 32%

No change No change. The milestone reads as follows: Health staff and teachers trained on adolescent health. Baseline health staff and teachers (2013): 0 Target (2017): Health: 6,700 Teachers: 3,200 Added to measure the relevant support of the WBG program.

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Increase in rural access to water and sanitation improved by 4.5pp and 1.pp by 2014.

Target (2014): 55% Revised to read as follows: Increase in sustainable access to water supply and sanitation services in rural, indigenous: Baseline (2008): Water: 0 Sanitation: 0 Target (2017): Water: 45,000 Sanitation: 47,000

Revised to reflect the WBG program. Instead of measuring access at the national level, the PLR revised the baselines and targets to reflect the 108 municipalities that are supported by the WBG.

Fiscal and budgetary projections are analyzed under a multi-annual perspective and are linked to budget and expenditure policies through the implementation of the MTBF and results-budgeting methodologies

Revised: Multi-year sectoral strategies inform the budget as measured by an improvement in PEFA Indicator # 12: Baseline (2010): C Target (2017): B+

Revised to simplify the language.

PILLAR II: INCREASE COMPETITIVENESS AND PRODUCTIVITY Roads in good and fair condition as a share of total classified roads Baseline (2011): 29% of the total classified network of 23,647 km Target (2017): 35%

Moved to milestones and added a new outcome. Added: Number of rural people with access to an all-season road Baseline (2011): 945,000 Target (2017): 1,019,000 Added: Access to telephone services (fixed line and cellular phones per 100 people) and to internet services (subscribers per 100 people) increased in rural areas Baseline (2008): Telephone: 37.83 Internet: 2.8 Target (2015): Telephone: 117 Internet: 16.5

Added a new outcome and put the original outcome as a milestone. Added to reflect the WBG support under this CPS that was omitted from the original given the uncertainty in implementation.

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Increased 100 MW in renewable energy (IFC, MIGA) (2012-2017)  

Revised to read as follows: Additional 100MW of renewable energy in the system

Revised the outcome to ensure clarity.

Improve productivity, production and producers incomes in one key export crop (detailed indicators to be added at Progress Report)

Revised. Added. Increase in crop production by farmers benefitting from technical assistance programs of the Nicaraguan Institute of Agricultural Technology: Baseline (2005): 1,800 metric ton Target (2014): 4,000 metric ton

Revised the original outcome as the WB-IFC Agriculture Competitiveness Project did not materialize due to Government priorities and the WBG continued with the implementation of the Second Land Administration Project.

Number of days to a register a new business reduced

Baseline (2012): 39 days Target (2017): 10 days

No change. Added: MSMEs increase sales by 150% Baseline (2009): 0 Target (2017): 600

No change. Added to reflect WBG support which was initially omitted due to slow implementation at the time.

Stock outstanding of IFC credit lines increases. Baseline (2012): US$23.8 million New regulatory institution for microfinance, CONAMI established and operating with adequate regulatory framework Improved legal framework and registry functions for secured transactions

Moved to milestones and update values. Added. No. of people, microenterprises, and SMEs reached with financial services increased Baseline (2012): US$1,152 Target (2017): US$1,800 Moved to milestones. Moved to milestones and revised.

Added to reflect IFC activities. Revised to read as follows: New regulatory institution for microfinance established and operating with adequate regulatory framework.

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Annex 3. Definitions  

1. Increase in the completion rate of primary education (1st to 6th grade)

Total number of students completing the final year of primary education, regardless of age, expressed as a percentage of the population of the official primary or secondary graduation age in 66 municipalities. Baseline (2010): Combined: 56.7% ; Girls: 58%; Boys: 54% Target (2017): Combined: 75%; Girls: 77%; Boys: 74% Source of data: Directorate of Statistics

2. Increase in Grade 9 (last year of lower secondary education) completion rate

Total number of students completing the final year of secondary education, regardless of age, expressed as a percentage of the population of the official primary or secondary graduation age in 66 municipalities. Baseline (2010): Combined: 44.5%; Girls: 45%; Boys: 43% Target (2017): Combined: 57%; Girls: 57%; Boys: 57% Source of data: Directorate of Statistics

3. Percentage of institutional deliveries in targeted municipal health networks

Number of women delivering in an institution divided by the total number of deliveries, multiplied by 100, in 32 municipalities. Baseline (2011): 72% Target (2015): 86% Source of data: Ministry of Health, General Division of Planning and Development

4. Increase in percentage of post-partum women receiving postnatal care

Number of post-partum women receiving postnatal care within 2 to 10 days of delivery in 32 targeted municipalities divided by the total estimated number of post-partum women, multiplied by 100. Baseline (2011): 32% Target (2014): 55% Source of data: Ministry of Health, General Division of Planning and Development

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5. Percentage of children less than one year old immunized with the Pentavalent vaccine in targeted municipal health networks

Number of children under one year of age receiving the third dose of pentavalent vaccine divided by the estimated number of children under 1 year (based on official estimates), multiplied by 100. Baseline (2011): 88% Target (2014): 98% Source of data: Ministry of Health, General Division of Planning and Development

6. Increase in sustainable access to water supply and sanitation services in rural, indigenous areas

Additional people with access to sustainable water supply and sanitation services in 108 municipalities. Sustainable water services includes: (i) provision of potable water at least 16h/day; (ii) an effective water management model in place (such as a Water Supply and Sanitation Committee); and (iii) collections of tariffs from community households sufficient to cover at least the administration, operation and maintenance costs of water infrastructure. Sustainable sanitation services are defined as regular usage of improved sanitation solutions by household members, with improved sanitation solutions being those that hygienically separate human excreta from human contact. Baseline (2008) Water: 0; Sanitation: 0 Target (2017): Water: 45,000; Sanitation: 47,000 Source of data: Emergency Social Investment Fund

7. Multi-year sectoral strategies inform the budget

Multi-year sectoral strategies inform the budget as measured by an improvement in Public Expenditure and Financial Accountability Indicator # 12 across four dimensions: (i) Preparation of multi-year fiscal forecasts and functional allocations; (ii) Coverage and content of sector strategies; (iii) Reconciliation of top-down and bottom-up approaches in the medium-term financial framework; and (iv) Links between medium-term framework and annual budgets. Each dimension is assessed according to the minimum requirements as described in the Public Expenditure and Financial Accountability Performance Measurement Framework (as of January 2011) and assigned a score from A (being the highest) to D (being the lowest). The four individual scores are then converted into one overall score based on the scoring table guidelines of the Framework. Baseline (2010): C Target (2017): B+ Source of data: Public Expenditure Financial Accountability Assessment

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8. Number of rural people with access to an all-season road

Number of people that are living within 2 km of an all season road. Baseline (2011): 945,000 Target (2017): 1,019,000 Source of data: Ministry of Transport and Infrastructure

9. Access to telephone services and to internet services increased in rural areas

Telephone: Number of fixed lines and cellular phones per 100 people Internet services: Number of subscribers per 100 people. Baseline (2008): Telephone: 37.83; Internet 2.8 Target (2015): Telephone: 117; Internet: 16.5 Source of data: Nicaraguan Institute for Telecommunications and Mail

10. Additional 100MW of renewable energy in the system

Additional renewable energy created in the system from San Jacinto and Eolo plant. Geothermal source: San Jacinto plant operating since December 2012 with capacity of 59MW. Wind power source: Eolo plant operating since February 2013 with capacity of 44 MW. Source of data: Development Outcome Tracking System, SME Reach survey and MIGA

11. Increase in crop production by farmers benefitting from technical assistance programs of the Nicaraguan Institute of Agricultural Technology

Increase from season to season or year to year in the quantity of crops producedby 35,000 farmers benefitting from technical assistance of the Nicaraguan Institute of Agricultural Technology. Baseline (2005): 1,800 metric ton Target (2014): 4,000 metric ton Source of data: Impact Evaluation, 2013

12. MSMEs increase sales by 150%

MSMEs that have benefitted from matching grants to finance pre-investment and investment activities awarded competitively through a series of rounds, and that have increased sales by 150%. Baseline (2009): 0 Target (2017): 600 Source of data: Ministry of Development, Industry, and Commerce

13. No. of people, microenterprises, and SMEs reached

Number of people, microenterprises, and SMEs reached with financial services supported by WBG-financed operations. IFC counts a broad range of financial services with data disaggregated between MSMEs, including:

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with financial services increased

Individual/Micro Finance: This category includes deposit accounts, the number of outstanding micro, housing and retail loans, as well as clients reached with insurance and pensions. IFC counts the year-end number of outstanding loans, clients insured, and deposit accounts. Microfinance loan is defined as a commercial loan with amount at origination up to US$10,000. Retail loans include consumer credit cards, store cards, motor (auto) finance, personal loans (installment loans), consumer lines of credit, retail loans (retail installment loans).

SME Finance: SME finance includes SME loans, leasing, as well as enterprise insurance. An SME loan is defined as a commercial loan with amount at origination between US$10,000 to US$1,000,000. Enterprise insurance includes the number of non-life commercial lines and agribusiness.

Baseline (2012): 62,152 Target (2017): 85,200 Source of data: Development Outcome Tracking System, SME Reach survey

14. Number of days to a register a new business reduced

Number of days it takes to register a new business. Baseline (2012): 39 days Target (2017): 10 days Source of data: Doing Business Report

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Annex 4: Portfolio Management  

1. During the period FY13-15, the investment portfolio of the World Bank in Nicaragua demonstrated remarkable performance in terms of disbursements and achievements. Disbursements almost doubled in terms of volume between 2013 and 2015 (US$45.7 million in FY13; US$74 million in FY14; and US$81.9 million in FY15). Similarly, the disbursement ratio had an upward trend (28 percent in FY13, 32 percent in FY14, and 36 percent in FY15), placing Nicaragua among the highest disbursing countries in Central America and LAC (FY15: 22.6 and 20.4, respectively). These high disbursements have translated into visible development outcomes and results on the ground (Annex 1).

2. These accomplishments are a result of an organized approach to portfolio management. The Government of Nicaragua and the World Bank have established effective communication channels (Figure 1) that serve to recognize and address implementation issues in a timely manner. The Ministry of Finance and Public Credit and the Multilateral Development Liaison Office play a critical role. The Multilateral Development Liaison Office, which reports to the Minister of Finance and Public Credit, has an appointed coordinator to oversee the implementation of public investments, and an assigned liaison for the World Bank portfolio. In addition, the National Technical Committee oversees the implementation of the public investment portfolio to provide institutional support and ensure competent and timely implementation. The portfolio management (Figure 2) also benefits from biannual reviews which serve to continually monitor project performance, and resolve any issues. The participation in the biannual reviews includes the Minister of Finance and Public Credit, representatives of the MDB, the National Technical Committee, Executing Agencies, and the World Bank. At the biannual review, each project is discussed in detail, what it

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has achieved to date, what are the obstacles to faster disbursement and implementation going forward. These efforts are accompanied by yearly fiduciary and procurement trainings to ensure continuous capacity building.

Figure 2. Country Portfolio Active Management Process

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Annex 5: Gender Equality in Nicaragua  

1. Nicaragua has made progress on introducing legislation to further gender equality. Article 27 of the Constitution of the Republic of Nicaragua mandates full equality of people before the law, and prevents discrimination on the basis of sex. Specifically on gender equality, Law 648 (February 2008) on equality rights and opportunities mandates that the State play a direct role in promoting the equality between men and women. Furthermore and relatively recently, a new Article 82 was incorporated into the Constitution (May 15, 2012) which reforms the Electoral Law: Political parties and alliances are now required to present 50 percent female candidates on ballots. It also establishes proportional representation between women and men in decision‐making positions in public administration. Notably also, Nicaragua recently passed a new Law on Violence against Women - Law 779 (February 22, 2012) - that aims to prevent and eradicate violence against women and mandates punishment for different types of violence. This law also makes mediation inadmissible in cases of violence. Finally, the new family code (effective since April 6, 2015) gives women and men equal rights to be head of the family and to choose the marital home; makes separation of property the default regime and repeals the provision that gave judges the decision-making power about ownership of assets in case of disagreement between spouses and raises the minimum age for marriage to 16 years for both girls and boys.

2. However, the comprehensive legal framework still lacks implementation at the local level given the lack of resources and municipal capacity to implement laws on gender equality. Furthermore, in terms of reproductive and sexual rights, the 2006 law which bans abortion in all cases (including in cases of rape, incest or life‐threatening pregnancies)17 has earned strong criticism by women’s and human rights activists18. Legalizing abortion can save women’s lives by reducing the health risks of unsafe abortions19.

Gender outcomes in endowments, economic opportunities and agency20 3. The World Development Report 2012 framework identifies three key dimensions of gender equality: the accumulation of endowments in the form of education, health and physical assets; economic opportunities, and agency21.

4. Applying this framework, one can observe that for Nicaragua gender outcomes are somewhat mixed when observing the different dimensions: On the one hand, Nicaragua shows clear progress in terms of women’s education, health and political participation but significant

                                                            17 The penal code mandates imprisonment for any person who is involved and/or assists women in an abortion, penalizing a woman seeking an abortion with up to two years in jail. 18 A 2007 report by Human Rights Watch (‘Over Their Dead Bodies’) suggests that this law intentionally denies women access to health services essential to saving their lives, and is thus inconsistent with Nicaragua’s obligations under international human rights law to ensure women’s right to life. 19 Legal access to abortion consists in a broadening of women’s options in the case of an unintended pregnancy. As the Voice and Agency Report (World Bank 2014) shows: The legalization of abortion in Bangladesh, Romania, and South Africa led to measurable declines in abortion-related mortality (World Bank 2014). In South Africa, the annual number of abortion related deaths fell by 91 percent after liberalization of the abortion law (World Bank 2014, quoting Jewkes et al). 20 If not mentioned otherwise, the data for this section stems from World Development Indicators. 21 The World Development Report 2012 defines agency as “an individual’s (or group’s) ability to make effective choices and to transform those choices.

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challenges remain, concretely high levels of gender-based violence and teenage pregnancy, and low levels of female labor force participation.

5. Education. Women in Nicaragua have been outperforming men in education. Women have had higher completion rates for primary and secondary schooling since the 1990s – with a trend in increased completion rates for both boys and girls22. According to the latest data (2010), 87.4 percent of women completed primary school, compared to 77.4 percent of men and 67 percent of women completed secondary school, compared to 57.1 percent of men23.

6. Sexual and reproductive health. While there has been progress in reducing the high levels of maternal mortality, that rate is still above regional average (at 100 deaths per 100,000 live births compared to regional average of 85, 2013). Institutional advances have been broadening access to maternal health services, including the Government 2007 policy of free public healthcare, development of the family and community health services model, and public support for Nicaragua’s casas maternas24. The fraction of births attended by skilled health staff at 88 percent (2012) was below the regional average of 92.6 percent (2012).

7. Economic opportunities. The advantages in terms of education observed for women compared to men do not translate into labor market outcomes: Women’s labor force participation (for ages 15 and above, International Labour Organization estimate) was 47.4 percent in 2013 and thus showed only a slight increase from 2008 (45.4 percent). At the same time, male labor force participation was 80.3 in 2013. The gap is also very pronounced among youth: Women’s labor force participation (ages 15-24 years) is only 32.3 percent compared to 63.5 percent among males (International Labour Organization estimates, 2013). Unemployment is almost the same for females and males (7.5 percent versus 7.0 percent, 2013). The gender gap is much larger though when looking at younger population (13.5 percent among women ages 15-24 versus 8.8 percent among men ages 15-24).

8. The quality of women’s labor market participation shows another dimension of challenges: According to the United States Agency for International Development Gender Assessment, women primarily enter the labor force through informal markets, and 8 out of 10 women are employed in microenterprises (as employees, self‐employed or unpaid workers).

9. Women’s agency. Political participation of women is very high in Nicaragua: At the National Assembly, 42.4 percent of parliamentarians are women, compared to LAC average of 27.5 percent (2014). Today, Nicaragua has the highest number of women holding ministerial positions in its history (57 percent, 2014) and at the same time the country has the highest share of female Ministers in the region (United Nations Economic Commission for LAC). At the local level, women’s share among mayors is also highest in LAC at 40.1 percent (2013). The share of female city councilors is lower though at 24 percent (United Nations Economic Commission for LAC, 2011).

                                                            22 However, these indicators do not measure quality of education. 23 For tertiary education, the latest available data stem from 2003 according to which the female to male enrollment ratio is 1.09. 24 From these casa maternas, networks of community volunteers identify pregnant women in remote areas and bring them an array of services, including pre-natal checkups, birthing plans, and post-natal follow-up. Around the time of delivery, the women stay in the casas maternas, usually located near health units, and receive additional support, such as help with breast feeding, early parenting skills and family planning. 

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10. Gender-based violence is one of the starkest manifestations of the lack of agency and it continues to be a serious problem in Nicaragua. While there is no recent prevalence data on gender-based violence available, the latest data (RHS 2006/2007) shows that 29.3 percent of ever partnered women had been physically or sexually abused by their partner at least once, and 9.3 percent had been abused within the past 12 months. Emotional abuse was much higher with almost one in two ever partnered women having experienced such form of violence. It is interesting to note that after controlling for other factors, younger age at first union (age <15 or 15-19) was associated with significantly (p<0.001) greater odds of physical or sexual intimate partner violence (Pan American Health Organization 2012). Additionally, violence experience decreases with increased educational achievement with women with up to 3 years of education being about 1.5 times as likely to have ever suffered physical or sexual violence from a partner compared to women with 12 years of education (Pan American Health Organization 2012).

11. However, the Government has been taking concrete steps to address the issue of violence against women. following approval of the Law on Violence against Women in 2012, the Government has also taken a number of concrete steps to support implementation of the law, including: establishing the National Inter-institutional Commission to fight gender-based discrimination and violence, reinforcement and expansion of the Commission for Women and Children, launching the National Observatory for Gender-based Violence and Discrimination on January 29, 2014 under the responsibility of the Supreme Court and developing the Family and Community Based Social Welfare Model, which is an umbrella strategy to prevent, treat and protect from abuse against women, children and adolescents.

12. Gender norms. To some extent, the challenges faced by women are related to social norms which may be constraining women’s agency. The Reproductive Health Survey 2006/2007 reveals very high shares of women supporting statements that are not favoring gender equality. Traditional gender norms seem more prevalent in rural areas, here for instance more than half the interviewees think that wives need to obey their husband. While the shares of participants who agree with such statements are significantly lower in urban areas it shows that gender-inequitable norms are still extremely prevalent in the country. With regards to the prevalent problem of domestic violence, it is concerning to note that almost 1 out of 5 rural women think that wife-beating is justified for at least one reason.

13. Teenage Pregnancy. Teenage pregnancy is a key priority for the Nicaragua Government, and policy makers expect to address broader dimensions of gender inequality by targeting that specific issue. The teenage pregnancy rates have significantly decreased in Nicaragua over the last decade: It showed a reduction from 122 births per 1000 girls aged 15-19 (2001) to 98.9 (2013). At the same time, Nicaragua is now the Latin American country with the highest rate of teenage mothers. Also, the rate remains nearly double of the Lower Middle Income countries’ average of 59.7 and more than twice as high as the world average of 48. As observed in other contexts, the proportion of teenage pregnancies is higher among the rural population compared to urban (based on 2006/2007 Reproductive Health Survey data). Also, teenage pregnancy rates are highest for girls with the lowest level of education and from the poorest income groups. Comprehensive, multi-sectoral strategies addressing girls’ agency and opportunities are needed to effectively address this problem (Azevedo et al 2013).

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Annex 6: Projects Approved FY13-15  

FY Project name US$m F

Y13

Second Land Administration Project 40.0

Additional Financing for Rural Water Supply and Sanitation

6.0

Additional Financing for Hurricane Felix Emergency Recovery

5.0

Adaptation of Water Supplies to Climate Change GEF 6.0

Education Sector Strategy Support Project EU & Global Fund

50.1

FY

14

Additional Financing for Rural Roads Infrastructure Improvement

57.0

Additional Financing for Improving Community and Family Health Care Services

10.0

Sustainable Rural Water Supply and Sanitation Project 30.0

Catastrophe Risk Insurance Facility 12.0

FY

15

Additional Financing for Public Financial Management Modernization

25.0

Caribbean Coast Food Security GAFSP 33.9

Strengthening the Public Health Care System Project 60.0

Total: 335.0

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Annex 7: Active Portfolio as of September 2015

Proj ID Project Name TL Name Approval

Date Rev Closing Lst DO Lst IP

Net Comm Amt

(US$m)

Total Undisb

Bal (US$m)

P133557 Education Sector Strategy Support Juan Diego Alonso 04/19/2013 04/30/2016 MS MS 50.09 27.13

P126357 Second Support to the Education Sector

Patrick Philippe Ramanantoanina

01/17/2012 06/30/2016 MS MS 25.00 7.04

P121779 Social Protection Project Miriam Matilde

Montenegro Lazo 02/03/2011 3/31/2017 MS MS 19.50 6.48

P106870 Improving Community and Family Health Care Services

Amparo Elena Gordillo-Tobar

12/07/2010 1/29/2016 S S 31.00 10.78

P152136 Strengthening the Public Health Care System

Amparo Elena Gordillo-Tobar

06/04/2015 10/20/2020 N/A N/A 60.00 60.06

P111795 Public Financial Management Modernization

Alberto Leyton 12/07/2010 12/31/2017 S S 35.00 24.03

P123447 Rural Roads Infrastructure Improvement

Sevara Melibaeva 12/13/2011 11/30/2017 S S 92.00 44.22

P147006 Sustainable Rural Water Supply and Sanitation Sector

Lilian Pena Pereira Weiss

03/18/2014 07/31/2019 S S 30.00 28.45

P121152 Second Land Administration Project Enrique Pantoja 03/26/2013 12/31/2018 S S 36.00 14.94

P127088 Adaptation of Nicaragua’s Water Supplies to Climate Change GEF

Tuuli Bernardini 11/13/2012 06/30/2018 MS MS 6.00 4.18

P148809 Caribbean Coast Food Security Project

Augusto Garcia 3/27/2015 12/30/2019 S S 33.90 31.40

P149895 Nicaragua Catastrophe Risk Insurance Facility (regional w/HN)

Ana Campos 06/18/2014 7/31/2021 S S 12.00 12.00

12 430.49 270.72

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Annex 8: Advisory Services and Analytics FY13-17  

38

Annex 9: Active Trust Funds (as of September 2015)

Trust Fund #

Trust Fund Name Net Grant Amount

(in US$000)

Grant Sign Date

Grant Closing

Date Donor Exec. By

TF012322 Nicaragua Strengthening Investment &Export Promotion

240.00 9/5/2012 9/5/2015 IDF Recipient

TF013222 Supplement funds to Strengthening Government Capacity for Rural & Peri Urban SS-DPSP

300.00 9/17/2012 8/31/2016 MDTF Bank

TF013510 Water and Sanitation - Climate ChangeNicaragua

249.34 10/29/2012 12/31/2015 MDTF  Bank

TF013517 Water and Sanitation - SanitationNicaragua

31.17 10/26/2012 12/31/2015 MDTF  Bank

TF013992 Public Financial Management 100.00 11/30/2012 8/19/2015 MDTF  Bank

TF014059 Public Financial Management 2,659.00 3/14/2013 8/19/2015 MDTF  Recipient

TF014338 Reducing the Vulnerability of SmallFarmers to Price Risk

1,000.00 4/24/2013 3/31/2016 Japan Recipient

TF014561 Strengthening Institutional Capacity ofGRAAN

600.00 7/13/2013 7/13/2016 MDTF Recipient

TF015567 Advancing Gender Agency in LAC:Experiences from the Transport Sector

150.00 10/1/2013 9/30/2015 MDTF Bank

TF016023 Consolidation, Improvement and Expansion of the Rural Water and Sanitation Information System (SIASAR)

400.00 11/18/2013 6/30/2016 Spain Bank

TF016356 Strengthening Supervision of MicrofinanceInstitutions

200.91 1/6/2014 8/31/2015 MDTF  Bank

TF016813 Water and Sanitation Impact Evaluation 143.53 2/27/2014 12/31/2017 MDTF  Bank

TF017513 Nicaragua learns from Land Administration experience in Croatia and FYR Macedonia

49.00 6/8/2014 3/31/2015 MDTF  Bank

TF017639 FCPF - Nicaragua - Preparation 157.50 6/19/2014 6/30/2020 MDTF  Bank

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TF018089 ENACAL Master Plan for Operational Efficiency in Managua/Nicaragua

120.00 8/1/2014 3/31/2016 MDTF  Bank

TF018167

South-South Exchange to improve the Management of Health Technologies (medical equipment) in the Public Health System

26.00 9/22/2014 9/15/2015 MDTF  Bank

TF019054 Preparation of the Education Sector Plan 2016-2020

500.00 2/11/2015 7/15/2016 MDTF  Bank

TF056528 Precious Woods Project 1,261.01 3/28/2006 12/31/2018 MDTF  Recipient

TF099264 FCPF Readiness Preparation Proposal - Formulation Grant

3,800.00 8/31/2011 12/31/2017 MDTF  Recipient

TF0A0373 Promoting the cognitive and socio-emotional development of children

25.00 5/17/2015 12/31/2019 MDTF  Bank

Total: 12,014.6  

IDF: Institutional Development Fund MDTF: Multi-Donor Trust Fund

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Annex 10: Projects Closed FY13-15

FY13

P056018 Land Administration Project*

P077826 Broad-Based Access to Finance Services Project*

FY14

P087046 Second Agricultural Technology Project

FY15

P083952 Fourth Roads Rehabilitation and Maintenance Project

P106283 Rural Water Supply and Sanitation Project

P108974 Hurricane Felix Emergency Recovery Project

P109691 Micro, Small & Medium Enterprise Development Project

P110092 Greater Managua Water and Sanitation Project

P089989 Nicaragua Rural Telecom

*The achievements of this Project have been captured under the previous CPS.

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Annex 11: IFC Committed Portfolio (as of September 2015)

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87°W 86°W 85°W 84°W 83°W

86°W 85°W 84°W 83°W

NICARAGUA

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IBRD 33456R1

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N ICARAGUACITIES AND TOWNS

DEPARTMENT CAPITALS

NATIONAL CAPITAL

RIVERS

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RAILROADS

MUNICIPAL BOUNDARIES

DEPARTMENT BOUNDARIES

INTERNATIONAL BOUNDARIES

This map was produced by the Map Design Unit of The World Bank.The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

GSDPMMap Design Unit