Document of The World Bankdocuments.worldbank.org/curated/en/842821467999685243/pdf/ICR… · Ministerio de Ambiente y Desarrollo Sostenible (MADS) Instituto de Hidrología, Meteorología

Document of

The World Bank

Report No: ICR00003430

IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-73350 IBRD-81330)

ON A

LOAN

IN THE AMOUNT OF US$7.0 MILLION

AND

ADDITIONAL FINANCING

IN THE AMOUNT OF US$10.0 MILLION

TO

THE REPUBLIC OF COLOMBIA

FOR A

SUSTAINABLE DEVELOPMENT INVESTMENT PROJECT

March 31, 2016

Environment and Natural Resources Global Practice Latin America and the Caribbean Region

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CURRENCY EQUIVALENTS

(Exchange Rate Effective date – March 31, 2016)

Currency Unit = Colombian Peso (COP) COP 1= US$0.0003

US$1 = COP 2996.61

FISCAL YEAR January 1 – December 31

ABBREVIATIONS AND ACRONYMS

AF Additional Finance AAU Autoridad Ambiental Urbana (Urban Environmental Authority) AMVA Área Metropolitana del Valle de Aburrá (Metropolitan Area of

the Aburrá Valley) AQM Air Quality Monitoring CAR Corporación Autónoma Regional (Regional Autonomous

Corporation) CARDER Corporación Autónoma Regional de Risaralda (Regional

Autonomous Corporation of Risaralda) CDMB Corporación Autónoma Regional para la Defensa de la Mesta de

Bucaramanga (Regional Autonomous Corporation for the Defense of the Bucaramanga Plateau)

CEA Country Environmental Analysis CONPES Consejo Nacional de Política Económica y Social (National

Council of Economic and Social Policy) CRC Corporación Regional Autónoma del Cauca (Regional

Autonomous Corporation of Cauca) CY Calendar Year DAGMA Departamento Administrativo de Gestión del Medio Ambiente

(Administrative Department of Environmental Management) DAMAB Departamento Técnico Administrativo del Medo Ambiente

Barranquilla (Technical Administrative Department of Environment Barranquilla)

DNP Departamento Nacional de Planeación (National Planning Department)

DPL Development Policy Loan

ESMF Environmental and Social Management Framework

FM Financial Management FY Fiscal Year GDP Gross Domestic Product GoC Government of Colombia HWP Handwashing Program

HWPPP Handwashing Public-Private Partnership ICR Implementation Completion and Results Report IDB Inter-American Development Bank IDS Inversión de Desarrollo Sostenible (Sustainable Development

Investment) IDEAM Instituto de Hidrología, Meteorología y Estudios Ambientales

(Institute of Hydrology, Meteorology and Environmental Studies) ISR Implementation Status and Results Report IWRM Integrated Water Resources Management M&E Monitoring and Evaluation MADS Ministerio de Ambiente y Desarrollo Sostenible (Ministry of

Environment and Sustainable Development) MAVDT Ministerio de Ambiente, Vivienda y Desarrollo Territorial

(Ministry of Environment, Housing and Territorial Development) MDG Millennium Development Goal MPS Ministerio de Protección Social (Ministry of Social Protection) MTR Midterm Review MVCT Ministerio de Vivienda, Ciudad y Territorio (Ministry of Housing

Cities and Land) NDP National Development Plan PAD Project Appraisal Document PAT Plan de Acción Trienal (Triennial Action Plan) PDO Project Development Objective PGIR Plan de Gestión Integrado de Residuos Sólidos (Integrated Solid

Waste Management Plan) PM1.0 Particulate matter less than 1.0 micrometer in diameter PM2.5 Particulate matter less than 2.5 micrometers in diameter PM10 Particulate matter less than 10 micrometers in diameter PND Plan Nacional de Desarrollo (National Development Plan) POMCA Plan de Ordenamiento y Manejo de Cuencas (Watershed

Territorial Management Plan) OP Operational Policy RUA Registro Único Ambiental (Single Environmental Registry) SDA Secretaria Distrital de Ambiente (District Department of

Environment) SEA Strategic Environmental Assessment SFLAC Spanish Trust Fund for Latin America and the Caribbean SIAC Sistema de Información Ambiental de Colombia (Environmental

Information System for Colombia) SINA Sistema Nacional Ambiental (National Environmental System) SIRH Sistema de Información del Recurso Hídrico (Water Resources

Information System) SIUR Sistema de Información de Uso de Recursos (Information System

on Use of Natural Resources)

SISAIRE Sistema de Información sobre Calidad del Air (Information System on Air Quality)

SUISA Sistema Unificado de Información sobre Salud Ambiental (Unified Environmental Health Information System)

SusDevDPL Programmatic Development Policy Loan for Sustainable Development

UNICEF United Nations Children’s Emergency Fund VHC Vehicle Homologation Center

Senior Global Practice Director: Paula Caballero

Global Practice Director: Bilal H. Rahill

Practice Manager: Raúl Ivan Alfaro Pelico

Project Team Leaders: Marcelo Acerbi and Yewande Awe

ICR Team Leader: Yewande Awe

REPUBLIC OF COLOMBIA Sustainable Development Investment Project

CONTENTS

Data Sheet

A. Basic Information ........................................................................................................ i B. Key Dates .................................................................................................................... i C. Ratings Summary ........................................................................................................ i D. Sector and Theme Codes ........................................................................................... ii E. Bank Staff ................................................................................................................... ii F. Results Framework Analysis ..................................................................................... iii G. Ratings of Project Performance in ISRs ................................................................. xiii H. Restructuring (if any) .............................................................................................. xiv I. Disbursement Profile ................................................................................................. xv

1. Project Context, Development Objectives, and Design .............................................. 1

2. Key Factors Affecting Implementation and Outcomes .............................................. 8

3. Assessment of Outcomes .......................................................................................... 18

4. Assessment of Risk to Development Outcome ......................................................... 29

5. Assessment of Bank and Borrower Performance ..................................................... 31

6. Lessons Learned ........................................................................................................ 37

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ........... 39

Annex 1. Project Costs and Financing .............................................................................. 40

Annex 2. Outputs by Component...................................................................................... 42

Annex 3. Economic and Financial Analysis ..................................................................... 54

Annex 4. Bank Lending and Implementation Support/Supervision Processes ................. 55

Annex 5. Beneficiary Survey Results ............................................................................... 58

Annex 6. Stakeholder Workshop Report and Results ....................................................... 59

Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ......................... 60

Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ........................... 67

Annex 9. List of Supporting Documents .......................................................................... 68

MAP .................................................................................................................................. 70

i

A. Basic Information

Country: Colombia Project Name: CO Sustainable Development Investment Project

Project ID: P082520 L/C/TF Number(s): IBRD-73350,IBRD-81330

ICR Date: 03/31/2016 ICR Type: Core ICR

Lending Instrument: Specific Investment Loan

Borrower: GOVERNMENT OF COLOMBIA

Original Total Commitment:

US$7.00 million Disbursed Amount: US$13.76 million

Revised Amount: US$17.00 million

Environmental Category: C

Implementing Agencies: Former Ministerio de Ambiente, Vivienda y Desarrollo Territorial (MAVDT) Ministerio de Ambiente y Desarrollo Sostenible (MADS) Instituto de Hidrología, Meteorología y Estudios Ambientales de Colombia (IDEAM) Departamento Nacional de Planeación (DNP)

Cofinanciers and Other External Partners: B. Key Dates

Process Date Process Original Date Revised / Actual

Date(s)

Concept Review: 04/12/2004 Effectiveness: 01/03/2006 01/03/2006

Appraisal: 09/21/2005 Restructuring(s): n.a.

10/29/2008 11/25/2009 12/20/2010 10/25/2011

Approval: 10/27/2005 Midterm Review: 06/30/2007 11/06/2007

Closing: 12/31/2009 04/29/2015 C. Ratings Summary C.1 Performance Rating by ICR

Outcomes: Unsatisfactory

Risk to Development Outcome: Significant

Bank Performance: Unsatisfactory

Borrower Performance: Moderately Unsatisfactory

ii

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings

Quality at Entry: Moderately Unsatisfactory

Government: Moderately Unsatisfactory

Quality of Supervision: Unsatisfactory Implementing Agency/Agencies:

Moderately Unsatisfactory

Overall Bank Performance:

Unsatisfactory Overall Borrower Performance:


C.3 Quality at Entry and Implementation Performance Indicators

Implementation Performance

Indicators QAG Assessments

(if any) Rating

Potential Problem Project at any time (Yes/No):

No Quality at Entry (QEA):

None

Problem Project at any time (Yes/No):

Yes Quality of Supervision (QSA):

None

DO rating before Closing/Inactive status:


D. Sector and Theme Codes

Original Actual

Sector Code (as % of total Bank financing)

Central government administration 78 78

Sub-national government administration 5 5

Urban Transport 5 5

Wastewater Collection and Transportation 2 2

Water supply 10 10

Theme Code (as % of total Bank financing)

City-wide Infrastructure and Service Delivery 17 17

Environmental policies and institutions 33 33

Pollution management and environmental health 33 33

Water resource management 17 17 E. Bank Staff

Positions At ICR At Approval

Vice President: Jorge Familiar Pamela Cox

Country Director: Gerardo M. Corrochano Isabel M. Guerrero

Practice Manager: Raúl Ivan Alfaro Pelico Abel Mejia

iii

Project Team Leaders: Marcelo Hector Acerbi and Yewande Awe [from September 2014]

Angela Armstrong Irina Klytchnikova

ICR Team Leader: Yewande Awe

ICR Primary Author: Yewande Awe F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document)

The objective of the Sustainable Development Investment Project is to support the development and implementation of policy reforms and related investments in line with the Sustainable Development DPL Program framework, particularly those policies and investments that address environmental problems affecting the quality of life and wellbeing of the Colombian population. Revised Project Development Objectives (as approved by original approving authority) The project development objectives (PDOs) were not revised.

iv

(a) PDO Indicator(s)

Indicator Baseline Value

Original Target Values (from approval documents)

Formally Revised Target Values

Actual Value Achieved at Completion or Target Years

Indicator 1:

Improved functioning of the National Environmental System (Sistema Nacional Ambiental, SINA) to set priorities related to sustainable development and achieve key results for the second and third phases of the Programmatic Development Policy Loan for the Sustainable Development (SusDevDPL) Program

Value (Qualitative or Quantitative)

Not defined Significant improvement of monitoring of water and air quality, information systems, and capacity to implement environmental regulations and policies

– Not defined

Date achieved 09/21/2005 12/31/2009 – 04/29/2015

Comments (including % achievement)

Not achieved. Baseline value was not defined in approval documents of first and Additional Finance (AF) loans (IBRD-73350 and IBRD-81330, respectively). The target value was not defined in the Project Appraisal Document (PAD). The target value indicated above was defined in the Project Paper of the AF loan (IBRD-81330). The definitions of the PDO and target value do not lend themselves readily to the measurement of the extent of their achievement. The PDO indicator does not provide a suitable parameter for measurement of achievement of the PDO. The first and AF loans had the same PDO indicator.

Indicator 2: Project beneficiaries Value (Qualitative or Quantitative)

Not measured Not measured Not measured Not measured

Date achieved Comments (including % achievement)

Not measured. This core indicator was introduced in the Project Paper of the AF loan (IBRD-81330).

Indicator 3: Of which female (Beneficiaries) Value (Qualitative or Quantitative)

Not measured Not measured Not measured Not measured

Date achieved

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Not measured. This core indicator was introduced in the Project Paper of the AF loan (IBRD-81330).

(b) Intermediate Outcome Indicators (indicators in shaded cells were introduced at approval of the AF loan)

Indicator Baseline Value

Original Target Values (from approval documents)

Formally Revised Target Values

Actual Value Achieved at Completion or Target Years

Indicator 1: Reach and acceptance of handwashing with soap messages among the target population of the benefits of handwashing with soap, compared with the baseline


Not measured 9.6 million people reached

– 10,157,600 million people reached

Date achieved 12/31/2009 – 04/30/2008


Partially achieved. This indicator was included in the PAD of the first loan. The target was not defined in the PAD but obtained from a behavioral study initiated during project preparation. A handwashing program included a mass media communication campaign to target behavior change in population segments most affected by mortality and morbidity associated with inadequate water supply, sanitation, and hygiene. The campaign was launched in December 2007 and continued until March 2008. Although a baseline was not measured, project-related documents indicate that the monthly target reach was 9.6 million people. A total of 10,157,600 women and children were reached by campaign messages per month. Although the indicator comprises two elements, Reach and Acceptance, only Reach was monitored and measured. The AF loan did not support the subcomponent on promotion of improved hygiene practices, and there was no monitoring of this subcomponent during the implementation of the AF loan.

Indicator 2: Behavioral change (i.e., increase in handwashing at key times), compared with baseline


5% of target population observed handwashing with soap

10% of target population observed handwashing with soap

– Not measured

Date achieved 05/24/2006 12/31/2009 –


No evidence of achievement. The baseline and the target were not defined in the PAD but obtained from a behavioral study initiated during project preparation. No value at completion is indicated because behavior change was not evaluated at the end of the handwashing program, implemented from 2007 to 2010, under the first loan. A Monitoring and Evaluation Plan, including a behavior change impact evaluation study, was designed under the first loan and initially intended to be implemented and funded under the AF loan. However, the final design of the AF loan, as contained in the Project Paper, did not include

vi

any activities on promotion of improved hygiene practices. Consequently, the result of the handwashing program is not known.

Indicator 3: Networks in operation with data generated from network used to produce unified report on air quality


2 air quality monitoring networks in operation. None reporting to central repository and none measuring PM2.5

7 air quality monitoring networks in operation with data generated from network used to produce unified report on air quality

–

Equipment provided to 21 air quality monitoring networks. Data from 14 networks used to prepare air quality report

Date achieved 09/21/2005 12/31/2009 – 03/07/2012


Partially achieved. The project provided equipment to 21 monitoring networks, which are at varying levels of operation. The equipment included 33 semiautomatic samplers (19 for PM2.5 and 14 for PM10), 9 automatic PM10 monitors, 3 sequential samplers designed to collect both PM10 and PM2.5 filters, 18 precision balances, and 3 gas samplers. Of these, 1 semiautomatic PM10 sampler and 3 automatic PM10 monitors were not operational as of April 2015, including 1 automatic PM10 monitor that never worked properly from the day of its delivery. The Institute of Hydrology, Meteorology, and Environmental Studies (IDEAM) received the largest number of equipment (including 1 automatic PM10 monitor, 4 semiautomatic PM samplers, 1 gas sampler, and 1 microbalance). However, equipment provided to the IDEAM is out of operation due to budget constraints. Data from air quality monitoring networks were used by the IDEAM to prepare a report in 2008 (covering 2007) on air quality that presented data from 20 stations. That report referred to the Information System on Air Quality (Sistema de Información sobre Calidad del Aire, SISAIRE) as work in progress. Data from 14 air quality monitoring networks were used to prepare a second report produced in 2012 (covering 2007–2010). Both reports focused exclusively on PM10 and gaseous pollutants. The 2012 report presents data analysis from 14 networks, based on data obtained either through the SISAIRE or through requests to the environmental authorities. It is not clear which stations reported through the SISAIRE. No reports have been produced subsequently.

Indicator 4: Strengthening air quality monitoring and health information systems


Zero homologation center and Unified Environmental Health Information System (Sistema Unificado de Información sobre Salud Ambiental, SUISA)

One homologation center and one SUISA fully operational

– 0

Date achieved 02/08/2012 04/29/2015 – 04/29/2015


Not achieved. This indicator was introduced in the Project Paper of the AF loan. The Project Paper states that the indicator was a result of a change of an indicator from the first loan, referred to as Air quality monitoring network strengthened to measure most harmful pollutants (for example, PM2.5).

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However, this latter indicator does not exist in the PAD. Inspection of the PAD and Project Paper suggest that this indicator replaced the indicator Networks in operation with data generated from network used to produce unified report on air quality under the first loan. Operationalization of the homologation center was not achieved due to a combination of factors related to practicality of the design, budget, and time constraints, in addition to regulatory and institutional reasons cited by the implementing agency. A proposed design for the SUISA was developed.

Indicator 5: Technical assistance provided to 200 municipalities to support closure of open dumps


0 200 – 122 municipalities received technical assistance

Date achieved 09/21/2005 12/31/2009 – 03/07/2012


Partially achieved. This indicator was included in the design of the first loan. Technical assistance was provided to 122 municipalities covering 21 departments in the country. In addition, technical assistance was provided to 39 public service companies involved in waste disposal and 28 autonomous regional environmental corporations (Corporaciones Autonomas Regionales, CARs). The Implementation Status and Results Report (ISR) No. 7 reports that 286 dump sites were closed as of December 2008. However, it is not known how many of the 122 municipalities that received technical assistance actually closed their open dumps. The Sustainable Urban Development component was not supported or monitored under the AF loan. According to the government of Colombia (GoC), solid waste continued to be addressed under a separate solid waste loan.

Indicator 6: Regulations developed supporting Urban Development Law, in particular preventing human settlements in areas at risk


0 4 new regulations developed

– 2

Date achieved 09/21/2005 12/31/2009 – 06/29/2006


Partially achieved. This indicator was included in the design of the first loan. The Sustainable Urban Development component was dropped from the AF loan. The aide memoire for the midterm review (MTR) indicates that the project supported the preparation of Decrees 097, 564, and 2181 of 2006. Of the aforementioned decrees, only the latter two included references to human settlements in areas at risk. The only evidence found linking the project to the decrees is the mention in the aide-memoire for the MTR. Otherwise, no specific products funded by the project have been found linked to the decrees.

Indicator 7: Regulations developed to support implementation of Water Law


0 4 – 0

Date achieved 09/21/2005 12/31/2009 – 03/07/2012


Not achieved. This indicator was included in the design of the first loan. The project was specifically to support the development of the following regulations,also stated in the loan agreement: wastewater discharge standards and regulations for pollution fees. The GoC did not issue a Water Law as initially

viii

envisaged under the SusDevDPL Framework as a result of difficulties encountered during the approval process by Congress. The GoC instead prepared a document titled Política Nacional para la Gestión Integral del Recurso Hídrico (National Policy for Integrated Management of Water Resources), approved in March 2010, which included plans to regulate some of the components envisaged under the proposed Water Law. A loan amendment in October 2008 indicated that the project would support activities (knowledge and consultation) related to water resource management reforms (instead of a draft water law). The loan agreement, however, remained unchanged with respect to the development of the aforementioned specific regulations. Furthermore, the intermediate outcome indicator also remained unchanged. The ISR No. 5, completed following the MTR, indicates that the project supported the preparation and adoption of decrees related to (a) the creation of the Water Resources Information System (Sistema de Información del Recurso Hídrico, SIRH); (b) the creation of water user and use registry; and (c) prioritization of watersheds for the purpose of planning and management. No clear evidence linking products of the project to the aforementioned decrees has been found. The ISRs for the first loan do not refer to regulations for waste water discharge standards and regulations for pollution fees.

Indicator 8: Strengthening environmental norms and regulations and implementation capacity


0 Implementation of the norms and protocols supported by the project initiated

– 0

Date achieved 02/08/2012 04/29/2015 – 04/29/2015


Not achieved. This indicator is included in the design of the AF loan. The Project Paper states that this indicator was a result of a change of an indicator referred to as Regulations developed to improve water resources management. However, this latter indicator does not exist in the PAD, and no indication has been found in project documentation that it was introduced by amendment of the Loan Agreement. The Bank has not received evidence from the GoC, of achievement of this indicator that was included in the design of the AF.

Indicator 9: Five laboratories accredited to conduct water quality monitoring Value (Qualitative or Quantitative)

0 5 – 66

Date achieved 09/21/2005 12/31/2009 – 03/07/2012 Comments (including % achievement)

Fully achieved. This indicator was included in the design of the first loan CO-7335. The 66 laboratories were accredited in up to 19 procedures following the National Technical Norm NTC-ISO/IEC 17025.

Indicator 10: Strengthening of the water resources monitoring network and the implementation of a water resources information system (SIRH)


55 monitoring stations installed and 13 applications of the SIRH developed

14 hydrological monitoring equipment, 7 radar-type sensors, 10 satellite

– 3 SIRH applications developed

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transmission stations, 3 sediment monitors installed and operational; and three SIRH applications developed on: state of water resources, risks, and management

Date achieved 02/08/2012 04/29/2015 – 04/29/2015


Partially achieved. This indicator was introduced in the Project Paper of the AF. The Project Paper states that this indicator was to change an indicator from the first loan: Action plan implemented to improve laboratory accreditation. However, the PAD does not contain this latter indicator. Inspection of the PAD and Project Paper indicates that the relevant indicator from the first loan was Five laboratories accredited to conduct water quality monitoring. None of the water monitoring equipment was procured as a result of a combination of delays in the procurement process on the Bank’s part and administrative and budgetary restrictions on the GoC’s part. Three SIRH applications were developed covering supply or water resources availability, demand, water quality, risks, and water management.

Indicator 11: Strengthening water resources management through pilot projects on aquifer management legalization of water use management of climate risks


Zero pilots on water use legalization; 1 Aquifer Management Plan to be updated; and 1 pilot on climate risk management

At least 3 pilots implemented and 1 Aquifer Management Plan fully applied

– 1 pilot on legalization of water use in Guali river basin and 1 pilot on flood risk for Barrancabermeja developed.

Date achieved 02/08/2012 04/29/2015 – 04/29/2015


Partially achieved. This is a new indicator that was introduced in the design of the AF loan. The pilot for legalization of water use in the Chinchina river basin, envisaged in the Project Paper, was not achieved by the project. Although preliminary work on the aquifer for the Sabana de Bogotá was conducted (such as modeling and definition of critical areas), the update and full application of the Aquifer Management Plan was not achieved.

Indicator 12: Accomplishment of at least three of the six sustainable development objectives established in the Three-Year Action Plans (Decree 1200 of 2004)


0 3 – Not Available

Date achieved 09/21/2005 12/31/2009 – Comments (incl % achievement)

Not achieved. This indicator was included in the design of the first loan and not monitored fully during implementation of the AF loan. Decree 1200 of 2004 describes six groupings of sustainable development indicators as follows: (a) to

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strengthen actions aimed at the conservation of natural heritage; (b) to reduce the risk of water shortages; (c) to rationalize the consumption of renewable natural resources; (d) to generate jobs and income for sustainable use of biodiversity and sustainable production systems; (e) to reduce health effects associated with environmental problems; and (f) to reduce risks to populations associated with natural disasters. The ISR No. 7 indicates that a monitoring and evaluation system was established. However, achievement of this indicator was not tracked in the ISRs.

Indicator 13: Improved incorporation of national environmental priorities and environmental variables in sectoral policies, through increased use of the Strategic Environmental Assessment (SEA) and other instruments


0

2 policy-based SEAs on environmental health and fuel quality conducted

–

1 policy-based SEA on environmental health and 1 policy-based SEA on biofuels were conducted.

Date achieved 09/21/2005 12/31/2009 – 03/07/2008


Partially achieved. This indicator was included in the design of the first loan. Based on information provided by the GoC, the SEA for environmental health served as an input for the restructuring of guidelines for a national strategy on environmental health approved by the National Council of Economic and Social Policy (Consejo Nacional de Política Económica y Social, CONPES) document 3550 of 2008 and the restructuring of the policy for prevention and control of air pollution. The SEA on fuel quality was not conducted. Instead, an environmental assessment of policies, plans, and programs for biofuels in Colombia, with emphasis on biodiversity, was conducted, which was outside the scope of fuel quality. CONPES 3550 of 2008 called for formulation of an environmental health policy, a National Intersectoral Technical Committee for Health and Environment (created by Decree 2972 of 2010), and a SUISA, among others. Besides the creation of the National Committee, it is not clear that the other recommendations of CONPES 3550 of 2008 have been formally adopted as regulations or that the guidelines have been implemented.

Indicator 14: Monitoring and evaluation system established and operational, measuring progress on achievement of millennium development goal (MDG)-based indicators (Decree No 1200 of 2004)


Not available

Monitoring baseline established in the ten most populated CARs with respect to the six sustainable development indicators described in Decree 1200 of 2004

–

The National Planning Department (DNP) has generated a progress report on MDGs that includes some of the parameters included in Decree 1200 of 2004

Date achieved 09/21/2005 12/31/2009 – 03/07/2012

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Partially achieved. This indicator was included in the design of the first loan. The indicator includes monitoring of the following parameters: (a) consolidation of actions oriented at conservation of natural heritage—number of hectares of protected areas under special regimes, rate of deforestation, and increase in vegetation cover; (b) reduce the risk of water shortage—population in risk of water shortage; (c) rationalize and optimize consumption of renewable natural resources—energy intensity measured as the relationship between equivalent barrels of oil and millions of pesos of gross domestic product; (d) water consumption in productive sectors (industrial, commercial, agriculture, and fisheries) measured as consumption of water over production or hectares—solid wastes recovered over total generation of wastes and solid wastes adequately disposed as share of total waste generated; (e) generate jobs and incomes from sustainable use of biodiversity and systems of sustainable production—volume of sales of businesses dedicated to green markets; (f) reduce health effects associated with environmental problems—rate of mortality and morbidity due to acute respiratory infections, rate of mortality and morbidity due to acute diarrheal illness, rate of mortality and morbidity due to dengue, and rate of mortality and morbidity due to Malaria; and (g) reduce population at risk of natural phenomena—persons affected by natural phenomena per year and economic losses caused by natural phenomena per year. The ISR No. 7 of December 2008 reports that a monitoring and evaluation system was established and is in operation. However, in 2007, the GoC modified Decree 1200 of 2004 and established different parameters from those originally contemplated. In particular, the indicators related to reducing health effects associated with the environment, notably MDG 4 on child mortality, were not included or monitored. Although this indicator was replaced by indicator #15 under the AF loan, the focus on sustainable development indicators or MDG-based indicators was maintained, and the project was not otherwise restructured to obviate the focus on MDG 4. The project was not restructured under the first loan to incorporate these new developments. There is no evidence that the project supported the design or implementation of a system of monitoring and evaluation that covered all the aforementioned six groups of indicators.

Indicator 15: Strengthening of the MADS in the area of monitoring of environmental management and sustainable development indicators


Platform of monitoring indicators in the initial phase of development

Monitoring and Evaluation module on MDGs as part of the Environmental Information System for Colombia (Sistema de Información Ambiental de Colombia, SIAC) portal operational

– Environmental management indicators compiled in a report by the MADS and monitored on the SIAC. Sustainable development indicators not being monitored by the MADS


Partially achieved. The indicator was introduced in the Project Paper for the AF loan to change the indicator from the first loan: Monitoring and evaluation system established and operational, measuring progress on achievement of

xii

MDG-based indicators. The SIAC is the environmental information system for Colombia.

Indicator 16: Strengthening of the DNP in the area of environmental management


Not Available Implementation of environmental management strategies and technical instruments, including (a) 4 technical instruments to support the formulation of the disaster risk management strategies; (b) 1 strategy for management of environmental information, and (c) 2 institutional strategies for dissemination of Integrated Water Resources Management (IWRM) information

– The DNP has prepared two documents produced on methodologies for structuring Colombia’s environmental information at sectoral and regional levels.

Date achieved 02/08/2012 04/29/2015 – 04/29/2015


Not achieved. This is a new indicator that was introduced under the AF loan. There is no evidence of the development of an environmental information management strategy for decision making in the areas of water resources and air quality management or evidence on the implementation of environmental management strategies and technical instruments, including (a) four technical instruments to support the formulation of the disaster risk management strategies; (b) one strategy for management of environmental information; and (c) two institutional strategies for dissemination of IWRM information.

Indicator 17: Strengthening of CARs in the implementation of the Single Information System on National Resource Use (Sistema de Información de Uso de Recursos, SIUR) for the manufacturing sector


Not Available

10 CARs with information strategies implemented, data processed and indicators of natural resources use developed and analyzed

–

The SIUR being piloted in 8 environmental authorities: 4 CARs and 4 urban environmental authorities (autoridades

xiii

ambientales urbanas, AAUs)


Partially achieved. This is a new indicator that was introduced in the Project Paper of the AF loan. The SIUR is being piloted in 8 environmental authorities (that is, 4 CARs and 4 AAUs) out of the 10 targeted.

Indicator 18: Communication of project results to civil society


Not Available – – Project information is not available on the webpage for the MADS

Date achieved – 12/31/2009 – 04/29/2015


Not achieved. This indicator was not monitored during implementation of the first loan and was not revised or replaced at the time of approval of the AF. Hence, the indicated achievement date is subsequent to the approval date of the AF. A search of the MADS website does not yield information about the project that can be viewed by the general public/civil society. Project reports produced by the GoC do not provide information with respect to communication of project results to civil society.

G. Ratings of Project Performance in ISRs

No. Date ISR Archived

DO IP Actual

Disbursements (USD millions)

1 12/28/2005 Satisfactory Satisfactory 0.00 2 06/28/2006 Satisfactory Satisfactory 0.40 3 12/27/2006 Satisfactory Satisfactory 2.67 4 06/13/2007 Satisfactory Satisfactory 2.67 5 12/12/2007 Satisfactory Satisfactory 2.67 6 06/06/2008 Satisfactory Satisfactory 5.69 7 12/12/2008 Satisfactory Satisfactory 6.19 8 06/16/2009 Satisfactory Satisfactory 6.19 9 11/29/2009 Satisfactory Satisfactory 6.46

10 06/20/2010 Satisfactory Satisfactory 6.70 11 02/18/2011 Satisfactory Satisfactory 6.70 12 08/10/2011 Satisfactory Satisfactory 6.74 13 03/21/2012 Satisfactory Satisfactory 6.81 14 11/05/2012 Satisfactory Satisfactory 7.00 15 06/18/2013 Satisfactory Satisfactory 8.85 16 01/04/2014 Satisfactory Satisfactory 10.51 17 10/21/2014 Satisfactory Moderately Satisfactory 12.90

18 04/29/2015 Moderately

Unsatisfactory Moderately

Unsatisfactory 14.04

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H. Restructuring (if any)

Restructuring Date(s)

Board Approved

PDO Change

ISR Ratings at Restructuring

Amount Disbursed at

Restructuring in USD millions

Reason for Restructuring & Key Changes Made

DO IP

10/29/2008 n.a. S S 5.69

Based on a request from the GoC, the Loan Agreement was amended to incorporate two changes: (a) to include the Selection of Individual Consultants as a method of procurement and (b) to change the description of Part C1 of the IWRM component to indicate that project activities to promote regional knowledge and consultations will be focused on water resource management reforms instead of a draft Water Law.

11/25/2009 n.a. S S 6.46

Extension of the closing date from December 31, 2009, to December 31, 2010. Extension was requested to allow implementation of actions under environmental health, IWRM, and planning and oversight of environmental management components; and disbursement of outstanding balance.

12/20/2010 n.a. S S 6.70

Extension of the closing date from December 31, 2010, to October 31, 2011 and reallocation of loan proceeds among project disbursement categories. Extension was requested due to unforeseen delays in implementation of outstanding balance and processing of the AF loan, resulting from the change of administration.

10/25/2011 n.a. S S 6.74

Extension of closing date from October 31, 2011, to April 30, 2012. Extension was requested to enable the project to achieve

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Restructuring Date(s)

Board Approved

PDO Change

ISR Ratings at Restructuring

Amount Disbursed at

Restructuring in USD millions

Reason for Restructuring & Key Changes Made

DO IP

PDO and to enable processing of the AF request.

I. Disbursement Profile

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1. Project Context, Development Objectives, and Design

1.1 Context at Appraisal

1. Country and sector background. At the time of appraisal of the first loan to support the Colombia Sustainable Development Investment Project, Colombia had taken numerous policy initiatives and built up its institutional capacity to protect and manage its natural resources.

2. Notwithstanding progress made on the environment and natural resources fronts, Colombia continued to face challenges with regard to degradation of its land, air, and water resources, which undermined the health and productivity of its citizenry, imposed a significant economic burden associated with health damage, and compromised the country’s potential for sustainable economic growth. An analysis of the cost of environmental degradation conducted by the Bank as part of a Country Environmental Analysis (CEA) showed that the cost of environmental degradation was equivalent to 3.7 percent of gross domestic product (GDP) or COP$7 trillion (US$3 billion).1 Health damage attributable to inadequate water supply sanitation and hygiene, urban air pollution, and indoor air pollution jointly cost about 2 percent of GDP as a result of increased mortality, morbidity, and decreased productivity. Based on the CEA, the following paragraphs describe Colombia’s priority environmental challenges and the institutional aspects related to their management at project appraisal.

3. Inadequate water supply, sanitation, and hygiene. With about 9 percent of the population without access to an improved water source, and lack of sewerage in 20 percent of urban centers, the costs associated with diarrheal morbidity from contaminated water and poor hygiene in both children and adults remained high, with the poorest groups often lacking adequate sanitation and water supply services. These results were found to be primarily attributable to the absence of explicit cross-sectoral policies to reduce waterborne diseases.

4. Urban and indoor air pollution. Air pollution, notably particulate matter pollution (PM2.5), is one of the most widespread and serious problems in Colombia’s cities and rural areas. Air pollution in Colombia’s cities, which are home to 72 percent of its population, and in industrial corridors, results in significant health damage to urban dwellers, including cardiopulmonary diseases and lung cancers in adults and acute respiratory illnesses mainly in children, and death from related diseases such as pneumonia. About 6,000 premature deaths per year occurred due to outdoor air pollution, while an estimated 1,100 fatalities were related to exposure to indoor air pollution, associated with the burning of solid fuels for cooking. The analysis highlighted the need to update regulations and issue standards and economic instruments that minimize the concentration of fine particulate matter in the air, including implementing an air quality monitoring (AQM) program to monitor particulate matter in priority urban areas. Possible options for reduction of indoor air

1 Sánchez-Triana, E., K. Ahmed, and Y. Awe, eds. 2007. Environmental Priorities and Poverty Reduction. A Country Environmental Analysis for Colombia. Washington, DC: World Bank.

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pollution included the use of cleaner fuels, improved cooking stoves, and policies that promote improved housing design.

5. Natural disasters. Colombia is vulnerable to natural disasters such as floods, droughts, volcanic eruptions, and earthquakes, averaging 2.97 natural disasters per year, the third highest rate in the Latin American region. At the time of appraisal the country had experienced six major earthquakes, three volcanic eruptions, three landslides, and three avalanches, in the preceding quarter century, at a significant cost to human and physical capital to the country. It was estimated that over 4 million Colombians were affected by natural disasters between 1993 and 2000 at an annual cost of US$453 million. The poorest and most vulnerable have paid the highest costs for these disasters with regard to damages, deaths, and lost assets.

6. Urban environmental problems. Inadequate planning and rapid urban growth contributed to increased risks to the welfare of the Colombian population, particularly the poor who are most vulnerable. Urban environmental issues associated with housing and urban planning and with waste management are primary contributors to such risks. More than 700 open air waste dumps and inadequate waste disposal sites were located in municipalities throughout Colombia where public waste collection and disposal services were deficient, threatening surrounding surface and ground water sources. Deficiencies in design and enforcement of environmental regulations and weak institutional mechanisms for ensuring closure of open waste dumps and construction of adequate waste disposal sites have resulted in pervasive poor municipal waste disposal practices. Underscoring these challenges was the increase in informal housing and shanty towns in areas most susceptible to natural disaster risks.

7. Water resources management. Colombia has made significant progress in watershed management, wetlands recovery at national and local levels, and investments in wastewater treatment plants in cities such as Medellin, Bucaramanga, and municipalities in the upper Bogota River watershed in the Bogota Savanna. As a result of water abundance, water allocation regulations had not been modified since 1978 and did not facilitate access to water by small water users or vulnerable groups such as indigenous peoples and Afro-Colombian communities. Although hazardous substances, including toxins and pathogens, are an important source of water pollution, water pollution control regulations and the effluent charge system addressed only organic matter and suspended solids discharged from point sources to surface waters, pointing to the need to broaden them.

8. Institutional context for environmental management. The National Environmental System (Sistema Nacional Ambiental, (SINA), created by Law 99 of 1993, provides for a strong structure of multiple stakeholder involvement—including a central-level ministry responsible for overall policy formulation and coordination, regional environmental authorities (Corporaciones Autónomas Regionales, CARs) and urban environmental authorities (Autoridades Ambientales Urbanas, AAU) responsible for environmental enforcement and water resources development, and research centers responsible for collecting and disseminating environmental data—decentralized management, and financial independence. Coordinating the decentralized system poses significant challenges with respect to technical capacity, efficient regulations, enforcement,

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sufficient data, and mechanisms for participation. The development of a system to identify environmental priorities and a mechanism to increase accountability of the CARs were deemed to be key steps for improving the effectiveness and efficiency of the SINA.

9. In 2003, the government merged most functions of the Ministry of Economic Development (housing, water, sanitation, and zoning) with the Ministry of Environment to create the Ministry of Environment, Housing, and Territorial Development (Ministerio de Ambiente, Vivienda y Desarrollo Territorial, MAVDT). As noted in the CEA, the merger weakened the government of Colombia’s (GoC’s) ability to design and implement efficient and effective environmental policies as most of the institutional capacity of the former Ministry of Environment was reassigned to housing and water supply topics. Budgetary and human resources for environmental topics were directed primarily to biodiversity conservation issues. In addition, the government dismantled the environment unit in the National Planning Department (Departamento Nacional de Planeación, DNP), which was a key factor in the design and implementation of the environmental policy in Colombia, further weakening the country’s institutional capacity for environmental management and sustainable development.

10. Rationale for Bank Assistance:

(a) Support the design and implementation of policy and institutional reforms under the Bank-supported Programmatic Development Policy Loan for Sustainable Development (SusDevDPL) Program. To support broad-based environmental reforms, the GoC requested Bank support on a program of three development policy loans (DPLs) for sustainable development (SusDevDPL Program), the first of which was approved in June 2005 (see box 1). The Colombia Sustainable Development Investment loan approved in October 2005 would assist the GoC in designing and implementing the policy and institutional reforms supported by the SusDevDPL Program and support the government’s program to move toward achievement of millennium development goals (MDGs) 7 and 4.

(b) Consistency with the Bank’s 2003 Country Assistance Strategy and Colombia’s 2002–2006 National Development Plan (NDP). Through its focus on supporting the GoC’s move toward achievement of the MDGs, notably MDG 7, the first loan for the Colombia Sustainable Development Investment Project was in line with the Bank’s 2003 Country Assistance Strategy, which proposed continued support on environmental management issues and a focus on achieving sustainable growth and building efficient, accountable, and transparent governance, and was consistent with the GoC’s environmental reform agenda to mainstream environment in sectoral agenda as outlined in Colombia’s 2002–2006 NDP.

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1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved)

11. The objective of the Sustainable Development Investment Project is to support the development and implementation of policy reforms and related investments in line with the SusDevDPL Program Framework, particularly those policies and investments that address environmental problems affecting the quality of life and wellbeing of the Colombian population.

12. The PDO indicator identified in the Project Appraisal Document (PAD) was improved functioning of the SINA to set priorities related to sustainable development and achieve key results for the second and third phases of the SusDevDPL Program.

1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification

13. Neither the PDO nor the PDO indicator was revised. Two core indicators were added at the time of approval of the Additional Finance (AF) loan in 2012: (a) project beneficiaries and (b) female beneficiaries, following the launch of mandatory core sector indicators by the Bank in July 2009.

1.4 Main Beneficiaries

14. The main project beneficiaries were the Colombian population as a whole, particularly the most vulnerable segments of the population, notably including children, whose quality of life and well-being were affected by the adverse effects of environmental degradation. Categories of beneficiaries, for example, include the vast number of Colombians living in the highly populated cities and rural areas and exposed to poor outdoor and indoor air quality and those who lack access to adequate water supply, sanitation, and hygiene.

1.5 Original Components (as approved)

Box 1. The Colombia SusDevDPL Program

The DPL Program for Sustainable Development comprised three operations from 2005 to 2008 whose goal was to support the GoC’s efforts to move toward achievement of the MDGs, particularly MDG 7 which seeks to ensure environmental sustainability, Target 9 that aims to integrate the principles of sustainable development into country policies and programs, Target 10 that aims to reduce the proportion of people without sustainable access to safe drinking water and basic sanitation, and Target 11 that aims to achieve a significant improvement in the lives of the urban poor. By addressing urban environmental issues affecting the most vulnerable populations (for example, air pollution, untreated drinking water), the program sought to support achievement of MDG 4 that seeks to reduce child mortality through addressing principal threats to children under five (for example, morbidity and mortality related to respiratory illnesses and diarrheal diseases). Specifically, the program had the following objectives: (a) improving the effectiveness and efficiency of the SINA and (b) integrating principles of sustainable development into key sectors, with a particular emphasis on protecting the most vulnerable groups.

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15. The first loan had four main components as summarized below.

16. Component 1: Environmental Health (US$3.92 million or 56 percent of first loan). This component was to support the GoC in the definition and implementation of policies, programs, and instruments to prevent environment-related illnesses (for example, respiratory illnesses caused by air pollution and diarrheal diseases caused by poor water quality and inadequate hygiene), through the financing of goods, consultants’ services and training, and operating costs. The subcomponents included (a) an air quality management program to support the development of a national Air Pollution Control Policy and (b) promotion of improved hygiene practices and prevention of hygiene-related diseases among the most vulnerable segments of the population in selected areas.

17. Component 2: Sustainable Urban Development (US$1.28 million or 18 percent of first loan). This component was to support the implementation of strategies outlined in the government’s Urban Development Policy (National Council of Economic and Social Policy (Consejo Nacional de Política Económica y Social [CONPES]) Document No. 3305 of August 23, 2004), which aimed to improve planning for urban redensification and renewal, improve conditions of precarious settlements, improve mobility, and prevent and mitigate urban environmental risks. The subcomponents were to support (a) improvements in the quality of urban living; (b) improvements in urban development management; and (c) implementation of the recently issued Decree on Final Disposal of Solid Waste.

18. Component 3: Integrated Water Resources Management (US$0.50 million or 7 percent of first loan). This component aimed to support the government in updating its legal framework for water resources management. The subcomponents included (a) development of wastewater discharge standards and regulations for pollution fees and consultations on a draft Water Law at national and regional levels; (b) strengthening of water quality laboratory accreditation processes; and (c) improvement of knowledge on water resources at the regional level.

19. Component 4: Planning and Oversight of Environmental Management (US$2.35 million or 34 percent of first loan). This component sought to improve the effectiveness and efficiency of the SINA through the following subcomponent to support (a) development of planning, monitoring, and oversight instruments to facilitate policy implementation and monitor indicators established in the Three-year Action Plans of the CARs as set out in Decree No. 1200 of 2004; (b) institutional strengthening of the DNP in the identification of environmental priorities; strengthening the MAVDT and DNP in developing information and regulatory instruments to improve their capacity to design and implement policies that address environmental priorities and to enhance coordination with key SINA actors; and supporting the MAVDT to disseminate environmental data more broadly to the public; (c) design and implementation of two strategic environmental assessments on environmental health and fuel quality and development of guidelines for an environmental health policy; and (d) technical support to the MAVDT to support project implementation and oversight, including conducting consultation and dissemination workshops and other public outreach activities.

1.6 Revised Components

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20. An AF loan, approved in February 2012, resulted in changes to the scope of some project components. The AF loan retained three of the four components of the first loan, namely, Environmental Health; Integrated Water Resources Management; and Planning and Oversight of Environmental Management with the aim of scaling up the project through implementing additional activities that build on the project’s achievements under those components. The component on Sustainable Urban Development was not supported by the AF loan. These aforementioned changes are described below.

21. The AF scaled up the following three components of the first loan as follows. The largest share of the budgetary resources under the AF was allocated to the Integrated Water Resources Management (IWRM) component, which accounted for 65 percent of the AF proceeds (or US$6.5 million). The Environmental Health component accounted for US$1.5 million and the Planning and Oversight of Environmental Management component accounted for US$2.0 million. Among the factors cited in the rationale for the AF were several achievements of the project with respect to key intermediate outcome indicators and satisfactory progress on development impact and implementation record shown by the project.

22. Environmental Health (US$3.02 million or 3 percent of the AF). The AF supported the following subcomponents: (a) installation of an emissions testing laboratory (homologation center) for vehicles and motorcycles for accurate measurement of emissions in the specific conditions related to Colombia’s territory (for example, high altitude) and the characteristics of the vehicles and motorcycles and (b) development of a prototype Unified Environmental Health Information System (Sistema Unificado de Información sobre Salud Ambiental, SUISA); strengthening of the Air Quality Information System; and strengthening the capacity of CARs and AAUs to implement regulations on noise pollution and monitor air quality and technical norms on point source emissions.

23. Integrated Water Resources Management (US$6.5 million or 6.5 percent of the AF). The AF supported the following subcomponents to continue to strengthen Colombia’s institutional capacity for IWRM and the implementation of priority areas of the National Water Resources Policy: (a) strengthening of the capacity of the IWRM Directorate of the Ministry of Environment and Sustainable Development (Ministerio de Ambiente y Desarrollo Sostenible, MADS) to allow it to implement the National Water Resources Policy and the project and carrying out capacity-building activities and training programs for CARs in technical topics related to water resources management, including, among others, IWRM, the borrower’s integrated water resources system, and the water regulations introduced to implement the National Water Resources Policy; (b) integrated, participatory river basin/aquifer planning and management to implement the National Water Resources Policy through development of priority planning and technical instruments for IWRM and testing the application of integrated water management tools in selected pilot watersheds; (c) management of climate risks in the water resources sector by carrying out a pilot project, in coordination with the IDEAM, to provide technical support to CARs to generate information about flood risk areas, including through development of a methodology to identify flood risk areas and development and validation of a methodology to elaborate flood risk flood risk maps at regional and local levels; and (d) strengthening water resources monitoring and information through development of

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additional modules for the IDEAM’s information system for water resources management, including the modules describing the state of water resources, risks, and management indicators, and strengthening of the IDEAM’s national monitoring network through acquisition, assembly, and installation of about 14 hydrological stations and other necessary equipment, in areas to be selected by the GoC.

24. Planning and Oversight of Environmental Management (US$2 million or 2 percent of the AF). The AF supported the following subcomponents: (a) strengthening of the DNP’s capacity for intersectoral coordination to issue the environmental health policy; IWRM; development of the second phase of the program to reduce the borrower’s fiscal vulnerability to disasters; and development of an environmental information management strategy for decision making in areas of water resources and air quality management; (b) strengthening of the MADS’s Directorate on Territorial Planning and Coordination of the National Environmental System through consolidation of methodologies and procedures for evaluation of environmental policies; support to the initiation of the operations of the internet portals of the MADS, CARs, and AAUs as part of the GoC’s online strategy to facilitate greater information transparency and monitoring; preparation of sustainable development reports (such as the reporting on the attainment of the MDGs); adjustment of electronic reporting systems of sustainability indicators by CARs in accordance with updated regulations; development of information systems and provision of training in support of better monitoring and reporting of sustainability indicators by CARs and by environmental research institutes; and provision of technical assistance to support the administration, management, evaluation, and general oversight of the Project; and (c) strengthening of the IDEAM and CARs, in coordination with the MADS, in the implementation of the GoC’s information system on the use of natural resources (Sistema de Información de Uso de Recursos, SIUR) for the manufacturing sector, specifically through conducting workshops and providing training to support implementation of the SIUR in, and development of indicators of natural resources use by, the sector.

1.7 Other significant changes

25. Changes to the scope of the IWRM subcomponent on Implementation of the Water Law under the first loan. An amendment to the loan agreement, which came into effect on January 20, 2009, changed the focus and scope of knowledge and consultation activities supported under the IWRM subcomponent. According to the amendment request approved by the country director, the amendment was justified on the basis that the project would no longer be supporting the development and implementation of a water law given that a draft law that had been submitted to the Colombian Congress in CY2005 was withdrawn in CY2006 as it could not be approved within two consecutive legislative periods due to factors beyond the project’s control. It is important to note that while this amendment affected knowledge and consultation activities on the draft water law, it did not change the scope of other activities in this subcomponent, specifically the development of wastewater discharge standards and regulations for pollution fees. In this context, the approval request confirmed the government’s commitment to meeting the law’s objectives through a series of decrees and associated reforms to update its legal framework for water resources management. The same amendment also resulted in including Selection of

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Individual Consultants as a method of procurement of consultants’ services under the project.

26. Project restructuring under the first loan: closing date extensions and reallocations of loan proceeds. The closing date of the first loan was extended three times, resulting in a cumulative extension of 28 months from the original closing date of the project and a total project duration of 9.5 years. The closing date of the project by 1 year from December 31, 2009, to December 31, 2010 as approved by the country director. A Restructuring Paper dated December 13, 2010, extended the closing date by 10 months to October 31, 2011, and reallocated loan proceeds, in the amount of US$748,673, from the ‘Goods’ and ‘Operating Costs’ disbursement categories to the category ‘Consultant’s Services and Training’. A Restructuring Paper dated October 7, 2011, extended the closing date by 6 months from October 31, 2011, to April 30, 2012, as approved by the regional vice president.

27. The AF loan changed the scope of the project, resulting in dropping the Sustainable Urban Development component and the Handwashing subcomponent and expanding the scope of the IWRM component. The AF loan made the following changes to the scope of the project:

(a) The Sustainable Urban Development component was not supported under the AF loan.

(b) The Environmental Health subcomponent on the handwashing program (HWP) was not supported under the AF loan.

28. Implementation arrangements for the AF loan were different from the first loan. The former MAVDT—through its Vice Ministry of Environment, Vice Ministry of Housing and Regional Development, and Directorate of Planning, Information, and Regional Coordination and supported by its Multilateral Bank Group—had overall responsibility for implementing the project under the first loan. Additional co-implementing institutions included DNP, IDEAM, and the Ministry of Social Protection (Ministerio de Protección Social, MPS). Under the AF approved in 2012, overall responsibility for project implementation was assumed by the newly created MADS, through its Vice Ministry of Environment and Sustainable Development and its Multilateral Bank Group. In addition, IDEAM had responsibility for the subcomponents on water resources monitoring and information systems and on the Single Environmental Registry (Registro Unico Ambiental, RUA) and DNP had responsibility for the subcomponent on its institutional strengthening.

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design, and Quality at Entry

29. Lessons from earlier operations. The PAD alluded to reflecting the following lessons in the project design:

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(a) Policy and institutional environmental reforms require continuous budgetary and technical support to ensure their sustainability. In this context, the design of the project was envisaged as a means of providing budgetary and technical support to SINA institutions in improving their management systems and to support implementation of SusDevDPL reforms.

(b) Need to incorporate interinstitutional coordination mechanisms in project design. Given the intersectoral agenda embodied in the SusDevDPL Program, the design of the first loan also envisaged the project as a means of providing technical assistance to strengthen intersectoral coordination and results of environment reforms. To this end, the design of the first loan envisaged the involvement of non-environment sectors, namely, the MPS, which was until its dissolution in 2011 responsible for health, and the IDEAM, on cross-sectoral themes addressed by the project such as environmental health and IWRM, respectively. This lesson was, however, not fully taken into account in the design of the AF, which eliminated two project elements—the Handwashing subcomponent and the Sustainable Urban Development component—that provided important opportunities for interinstitutional coordination between the MADS and key stakeholders managing health and urban development issues.

(c) Importance of a strong analytical base, which includes technical, institutional, and political economy analyses, identification of priorities for analytical work based on both analytical work and perceptions, and a good understanding of the institutional framework. The first loan was designed to respond to Colombia’s environmental priorities as identified in the various detailed pieces of analytical work that underpinned the project, including a study of the cost of environmental degradation in Colombia; an evaluation of the effectiveness and efficiency of Colombia’s environmental policies and institutions; and a survey of public perceptions of Colombia’s environmental priorities. The Project Paper for the AF, however, provides no indication that the analytical base was updated.

(d) Upfront establishment of result and impact indicators and their measurement throughout project implementation. Both the first loan and the AF established Results Frameworks. Several shortcomings were associated with the design of the Results Framework, which limited their utilization not only for monitoring results and impact of the project, but also for identifying opportunities for course correction in project design. The shortcomings of the Results Framework are discussed separately in section 2.3.

(e) Dependence of project impacts on leadership and technical capacity of executing agency.

(f) Complementarity to other operations in Colombia—according to the PAD, based on World Bank-Inter-American Development Bank (IDB) discussions with the GoC it was agreed that IDB would focus specifically on reforestation

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issues and cleaner production for the manufacturing sector through its SINA II project to complement the Bank-funded Colombia SuSDevDPL Program and the Sustainable Development Investment Project. The AF includes a subcomponent on resource use in the manufacturing sector (Subcomponent 3.3 on Implementation of the RUA in the Manufacturing Sector), more closely akin to cleaner production issues in the sector, which IDB was to focus on as previously agreed between the Bank, the IDB, and the government. There is no information or analysis in the Project Paper justifying this change of direction in project design.

30. Soundness of background analysis. Project design and structure were informed by an extensive and solid base of analytical work, principally the CEA, conducted in parallel with the preparation of both the first loan and the Colombia SusDevDPL Program. The key pillars of the CEA comprised (a) an assessment of the cost of environmental degradation in Colombia; (b) an assessment of institutional capacity for environmental management in Colombia; and (c) an assessment of the effectiveness and efficiency of existing policies to address environmental priorities. In addition, a broad survey of societal perceptions of Colombia’s environmental concerns was conducted to assist the government in identifying the country’s priority environmental problems and the contributing sectors to those problems. The Project Paper for the AF does not provide indications of an updated analytical base that informed or justified the AF design.

31. Assessment of project design. The project, and the SusDevDPL Program, was designed with the goal of (a) responding to the findings of the analytical work, that is, the CEA, and (b) supporting the implementation of the policies and reforms carried out under the Programmatic SusDevDPL. The design of the first loan partially responded to the environmental priority areas identified by the CEA. The selection of components included in the design broadly covered the environmental priorities identified in the CEA, that is, environmental health, sustainable urban development, IWRM, and institutional strengthening for environmental management. However, further inspection of the components shows that the recommendations of the CEA were not followed in full. For example, while the first loan included an HWP by the CEA, activities on ambient air quality focused principally on procurements of AQM equipment. Furthermore, although the CEA identified indoor air pollution as a priority, it was not supported by the SusDevDPL and consequently not by the project. Similarly, the AF design discontinued the HWP and eliminated the Urban Development component.

32. Aspects relating to institutional capacity on the GoC’s side as well as Bank support to preparation are thought to have contributed to the noted omissions in the project design notably under the AF. No clear reasons for the discontinuation of the HWP have been found in project documentation. However, it is pertinent to note that following the split of MAVDT in 2011 and the creation of the Ministry of Housing, Cities, and Territories, which focused on housing and drinking water supply, the institutional mandate of MADS did not include topics related to hygiene promotion or urban development. On the Bank side, the task team for the AF did not include the relevant specialists, for example, on handwashing and hygiene, air quality, and urban development to provide the requisite expertise to inform project design. Furthermore, lack of rigorous analysis to assess the institutional capacity of

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the implementing agencies to ensure that project design enhanced the likelihood of achievement of project outcomes and that measures to address gaps were put in place, including appropriate partnerships with other government agencies that possessed the relevant capacity. Some specific examples are noted in paragraphs 34 to 36.

33. The design of the first loan broadly responded to the policy areas addressed by the SusDevDPL Program, namely, (a) development of a results-based framework for monitoring the progress of the SINA toward goals directly linked with sustainable development and achievement of MDGs; (b) improvements in interinstitutional coordination and increased public participation in environmental decision making; and (c) preparation and approval of critical decrees, laws, and policies related to air quality, water quality, solid waste management, environmental health, and environmental licensing. The design of the AF did not respond significantly to the SusDevDPL Program’s policy area aimed at improvements in interinstitutional coordination as a number of project activities that required such coordination was phased out of the AF’s design as mentioned earlier. The AF introduced new focus areas under the IWRM component such as management of climate risks in the water resources sector, which was aligned with the government’s 2010–2014 NDP, ‘Prosperity for All’ (Prosperidad para Todos), and its heightened focus on prevention of disaster and climate-related risk in the aftermath of extensive flooding, damage, and losses of life and assets in the country during the mid-2010 monsoon season. In this respect, however, the AF design represented a departure from the original purpose of implementing the reforms supported by the SusDevDPL Program. In addition, the design of the AF loan missed the opportunity to further respond to the policy areas relating to the preparation and approval of critical decrees, laws, and policies related to air quality, water quality, solid waste management, environmental health, and environmental licensing as some relevant project components were missing from the design as were activities such as the preparation of relevant regulations.

34. Assessment of risks. The PAD identified potential risks facing the project and measures to mitigate them. The risks included the following: (a) the lack of multisectoral coordination could undermine the success of the project; (b) relative weakness in public environmental management in Colombia might result in inadequate coordination of project activities; (c) capacity building provided to the implementing agency (then MAVDT) would not be sustained; (d) given the CARs’ relative autonomy, the regional activities would not be aligned with the prioritized activities at the national level; and (e) future reforms, in particular the Water Law, might not be passed by Congress given the multisectoral nature of the DPL-supported reforms and different vested interests of key stakeholders, for example, industry and agriculture sectors. The Project Paper of the AF identified the following risks: (a) delays to project implementation that might result from the recent division of the MAVDT into two ministries; (b) weak institutional capacity within the then recently created IWRM Directorate within the MADS to ensure that it can effectively implement a challenging agenda in water resources management.

35. The project partially mitigated the following identified risks:

(a) Early during implementation of the project there were informal coordination mechanisms to ensure cross-sectoral coordination. For example, the MAVDT

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coordinated with other relevant ministries to review cross-sectoral regulations. In addition, there was an informal mechanism for involvement of the MPS in the HWP. Also, a public-private partnership was established to design the HWP that included the MPS, MAVDT, soap companies, United Nations Children’s Emergency Fund - UNICEF, and other partners. Later on, however, there were no upstream mechanisms to ensure cross-sectoral coordination between the MAVDT and other ministries on cross-sectoral issues notably on environmental health. To underscore the lack of a systematic coordination mechanism between the MAVDT and MPS, the aide-memoire of the August 25–September 1, 2011, mission indicated that responsibility for implementation of the handwashing subcomponent was transferred to the Ministry of Housing, Cities, and Land (MVCT) following separation of the MAVDT. Under the AF, key activities that were designed to be jointly implemented with other sectors were phased out, notably the HWP. The AF included the design of an emissions testing laboratory (also referred to in the Project Paper as a vehicle homologation center, VHC), which should have been designed and implemented in coordination with other sectors, notably Transport, and authorities of the main cities with significant air pollution problems. There is no evidence that such coordination existed. The VHC was eventually not implemented, notably because it was overdesigned and the cost of the resulting design greatly exceeded the budget (that is, US$13 million instead of the budgeted US$1 million), and there was no provision in the project design for the needed implementation arrangements. It is possible that such interinstitutional coordination would have provided the guidance needed to ensure the appropriate design and implementation of an emissions testing laboratory of the right scale and in a cost-effective manner.

(b) Regarding the weakness in public environmental management, the analytical work under the CEA showed that the merger of the environment and housing ministries as MAVDT weakened the institutional capacity of the environmental agencies and also increased the lack of articulation between national level and regional environmental authorities and AAUs. No mitigation measures were put in place to address this weakness and the attendant risks. With the split of MAVDT in 2011, this landscape significantly changed, resulting in weakened allocation of resources, notably budgetary, for addressing environmental issues and the loss of institutional memory and continuity.

(c) The risks associated with the sustainability of institutional strengthening were not fully mitigated. This is evident, for example, in the discontinuation of the HWP following completion of Bank funding under the first loan.

(d) The designed measures were not sufficient to mitigate risks if the draft Water Law was not passed by Congress. Project preparation activities could have included the preparation of terms of references for preparation of regulations that responded to the key areas envisaged under the draft law in the event of nonapproval by Congress. Furthermore, the amendment of the Loan

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Agreement relating to the draft Water Law was not done until almost three years into project implementation.

36. There was no formal review of quality at entry of the first loan by the Bank. According to the Loan Agreement, the execution of a Management Support Agreement between the MAVDT and the management support agent, which provided assistance to the MAVDT on procurement and financial management (FM) activities, was an additional condition for effectiveness. The project met this condition, achieving effectiveness on January 3, 2006, about two months following Board approval.

2.2 Implementation

37. A midterm review (MTR) of the project was conducted on November 6–9, 2007, under the first loan. The MTR concluded that (a) the Loan Agreement be amended to reflect that the project would be supporting the development of key reforms in water resources management instead of the development of regulations for implementation of the Water Law and (b) the outcome indicators relating to behavior change with respect to handwashing and achievement of at least 3 of the 6 sustainable development objectives established in the Three-Year Action Plans (Plan de Acción Trienal, PATs) of the CARs (according to Decree 1200 of 2004) could only be achieved in the long term. Furthermore, the Bank and GoC agreed that the project would achieve only preliminary results on these indicators by the original closing date in 2009.

38. Institutional aspects. The institutional weaknesses associated with the creation of MAVDT and dismantling of the environment unit of DNP in 2003 have been noted in section 1.1. Furthermore, before the approval of the AF loan (8133-CO), the previously merged MAVDT was split by Decree 3570 of 2011, resulting in the Ministry of Housing, Cities, and Territories, which focused on housing and drinking water supply and the MADS). The creation of MADS was envisaged to improve institutional effectiveness and efficiency for environmental management and sustainable development. The resulting ministry, however, resembled but a part of the Ministry of Environment that was created by Law 99 in 1993, focusing primarily on biodiversity conservation, environmental licensing, and, to a lesser extent, water resources management. As a result, the focus areas of MADS limited its ability to effectively implement the project and ensure project outcomes. These institutional factors affected not only project design, but also project implementation.

39. Implementation support provided by the Bank. Some of the factors that limited project outcomes during implementation had their roots in the design stage and others in the lack of adequate technical support provided by the Bank during project implementation. In some cases, project design shortcomings related to technical design of project activities and to unrealistic costing and insufficient allocation of budgetary resources for activities, which in turn translated to activities that could not be executed either for technical and/or financial reasons. The examples of the VHC and the SUISA under the Environmental Health component of the AF are illustrative. The Bank did not consistently provide the technical expertise to address technical issues during implementation. As a result, some issues were not caught or addressed on time through the use of time-bound action plans for

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addressing and/or resolving implementation issues or by proactively raising them for management attention. In other cases, an expert technical review of major procurements of specialized goods was not undertaken by the Bank until late in the procurement process as was the case with acquisition of hydrometeorological stations under Subcomponent 2.4 (IWRM) under the AF, which was a contributory factor to its non-execution in addition to the borrower’s administrative and budgetary restrictions. Further discussion of the Bank’s performance during project implementation is included in section 5.1(b).

40. Implementation delays. The AF experienced delays with respect to implementation of Subcomponent 1.1 (Vehicle Homologation Center, VHC) led by MADS and Subcomponents 2.4 (Strengthening Water Resources Monitoring and Information) and 3.3 (Implementation of a Single Environmental Registry in the Manufacturing Sector) led by IDEAM. The delays on the VHC were related to regulatory and funding requirements, which were more complex than envisaged during project preparation and contributed to the eventual non-completion of the VHC. Delays with IDEAM securing required fiscal space were attributed to internal management issues and meant that implementation of resources for the stated subcomponents was delayed until 2014. The Implementation Status and Results Report (ISR) No. 17 notes that IDEAM took actions to ensure continued implementation of project activities using its own funds. Nonetheless, some of the activities under Subcomponent 2.4 were not executed as outlined in the preceding paragraph.

41. Closing date extensions. The three closing date extensions of the project were related in part to the need to complete ongoing and planned project activities. The extension in 2010 was in addition due to delays in processing the AF loan, resulting from the change of administration. Similarly, the six-month extension in 2011 was also due to the fact that GoC put the processing of the AF request on hold, due to the separation of MAVDT, until institutional arrangements for the new MADS were in place. A final request received from the GoC in October 2014 to restructure the project including an 18-month extension of the closing date of the AF loan, from April 29, 2015, to October 30, 2016, was not agreed to by the Bank.

2.3 Monitoring and Evaluation Design, Implementation, and Utilization

42. Monitoring and evaluation (M&E) design. According to the PAD, the MAVDT’s Directorate of Planning, Information, and Regional Coordination was assigned responsibility for general oversight of the project’s M&E and together with the project’s Technical Oversight Committees and Directors of the MAVDT’s technical offices would maintain an M&E system. This would be used to generate information that would be provided to the Bank on an annual basis. The Project Paper does not include provisions for specific arrangements with respect to project M&E for the AF.

43. In addition to a Results Framework, some specific components of the first loan were designed to include M&E activities: (a) air quality subcomponent designed to generate air quality data, particularly on the most harmful pollutants to human health, and compile into a unified national air quality report on Colombia and use this information to better understand health impacts of pollution; (b) evaluation of behavioral changes (changes in handwashing at critical times) by the end of the project; and (c) monitoring of

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implementation progress on achievement of the sustainable development indicators, linked to the MDGs, in the PATs of the CARs (as set out in Decree 1200 of 2004).

44. The design of the Results Framework for the first loan had some shortcomings, which undermined its implementation and its effectiveness as a tool for measuring the effectiveness of the project in achieving the intended outcomes and PDO: (a) a very broad and difficult to measure PDO; (b) an incomplete Results Framework at the start of the design including some missing baselines, some of which were established during project implementation (for example, those related to the HWP), and others that were never established such as for the PDO indicator; and (c) use of a single indicator for measurement of multiple parameters that should have separate indicators, for example, use of a single indicator for both reach and acceptance of the HWP. The shortcomings in the design of the Results Framework were further amplified in the AF including: (a) lack of a consistent and clear logical chain that demonstrates how project activities link to intermediate result outcomes, indicators, and, in turn, the PDO; (b) a number of missing baselines that were never established; (c) units of measurement that were not appropriate for capturing the intended result; (d) result indicators that did not fully represent the result intended to be measured; and (e) end targets that did not lend themselves easily to tangible measurement or quantification due to their broadness.

45. The Project Paper of the AF refers to revisions of a number of indicators for the first loan. In fact, some of these are substantial changes to the indicators and target values, and not revisions. Also, in a number of cases, these revisions led to results indicators that were often more ambiguous and less easy to quantify and measure. Under the first loan, the indicator and target value for the air quality subcomponent are respectively, networks in operation with data generated from network used to produce unified report on air quality and 7 air quality monitoring networks in operation, with data generated from network used to produce unified report on air quality. Under the AF, the indicator is changed and broadened as follows: strengthening air quality monitoring and health information system yet the target value is 1 homologation center and 1 SUISA fully operational. In other words, despite the intention in the Project Paper to establish indicators broad enough to reflect the new activities financed by the AF, the new indicator is more ambiguous and the new target value is unable to capture the results attained under the first loan.

46. M&E implementation. M&E activities envisaged under the components of the first loan were largely not achieved for several reasons, including partial- or non-implementation of some project activities and reduced level of ambition with respect to expected project results: (a) Although air quality data were collected and compiled, they were largely focused on reporting PM10 data rather than the more harmful to health PM2.5 as envisaged in project design. (b) Evaluation of behavioral change with respect to the HWP was not conducted at the end of the project and the HWP was not continued under the AF; (c) As previously stated, the November 2007 MTR concluded that the indicators relating to implementation progress on achievement of the sustainable development indicators, linked to the MDGs, in the PATs of the CARs (as set out in Decree 1200 of 2004) could only be achieved in the long term and that only preliminary results could be achieved by project end (envisaged in 2009).

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47. M&E utilization. The Loan Agreements called for regular reporting on implementation progress through annual progress reports, prepared by the sectoral teams in the MAVDT, for the first loan, and biannual progress reports for the AF. Bank records of the progress reports were found to be incomplete during ICR preparation. Given these limitations, it is difficult to assess the usefulness of reporting as a project management tool for the GoC and the Bank to take action on issues and reorienting the project where needed. At the end of project implementation, the reporting was instrumental in conveying the scope and range of the numerous activities financed by the project but less so as a tool for enhancing the likelihood of achievement of project outcomes. In some cases, the activities reported were not aligned with the set targets for the intermediate outcome indicators.

2.4 Safeguard and Fiduciary Compliance

48. Safeguards. The first loan did not trigger any environmental or social safeguards and was classified as a Category C project at the design stage. The implementation of the first loan did not generate negative environmental or social impacts. However, the project triggered Environmental Assessment Policy. The AF was classified as Category B in line with the Precautionary Principle, given that some of the financed activities could have minimal environmental impacts, although of a nature that is temporary, reversible, and can be addressed by mitigation measures. The AF triggered Environmental (OP 4.01) and Natural Habitats (OP 4.04) safeguards. An Environmental and Social Management Framework (ESMF), including public participatory processes and mechanisms, was prepared that established prevention and mitigation measures to ensure compliance with safeguards.

49. The government entities responsible for the execution of subprojects demonstrated interest in application and compliance with the ESMF. Contracts and agreements between the different agencies of the state incorporated measures to comply with the environmental safeguards, as applicable, including consultations with civil society. In general, national environmental regulations, including Law 99 of 1993 and its regulations, were complied with. The non-conclusion of some subcomponents, for example, the Aquifer Management Plan for Sabana de Bogotá, meant a lost opportunity to ensure the application of environmental management measures, particularly the participatory and socialization mechanisms in the ESMF. Overall, the project complied with the environmental safeguards that were triggered.

50. Financial management. The MVCT and later MADS, following the split of MAVDT, had overall FM responsibility of the project, albeit other institutions were also involved in project implementation (IDEAM and DNP). Appropriate and timely coordination with the entities on the FM aspects of the project was kept. The final implementation of the first phase of the project financed under loan 7335-CO and the continuation under the AF loan 8133-CO were affected by the split in May 2011 of the former MAVDT, as the institutional capacity in the FM area of the new MADS was weak, with an understaffed financial area and outdated financial procedures. The contracting of the project financial specialist was not opportune, but strengthening measures were taken. The Bank provided input on the financial administrative procedures developed by MADS and ensured the contracting of qualified FM staff.

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51. For the years 2006 and 2010, the auditors2 issued clean opinions (no exceptions) on the project financial statements but negative opinion for 2007 and qualified for 2008. The issues qualifying the opinions on the project financial statements were mostly attributable to the management of project funds by the Fiduciary Agent, and were satisfactorily resolved after the implementation of an FM action plan. From 2010 until the project closing date April 29, 2015, the auditors issued unqualified opinion on the project financial statements. FM performance has been assessed Moderately Satisfactory throughout project implementation, and the FM assessed that project risk has been Moderate.

52. Procurement. Minor inconsistencies were detected in the compliance of some procurement and planning procedures in the selection processes, which consist primarily in (a) procurement planning processes, where the planning did not correspond to the average real times that were used in the project, such that the quality of programming and the start of the processes were impacted; (b) the development of technical specifications or terms of reference or expressions of interest not prepared in a timely fashion, thus delaying processes; (c) limited technical supervision and inputs on procurement of goods and services by technical specialists in air quality management, water resources management, and institutional capacity building; (d) weaknesses in the administration of contracts presented, due to lack of careful monitoring; (e) weaknesses in the reports on short lists, financial proposal evaluations, and negotiation meetings; and (f) in a few cases, the project choosing the selection method solely based on the method’s short duration but not on the assignment’s technical complexity as should have been the case. The supervision missions and ex post reports (available in Bank files) led to action plans and recommendations regarding the strengthening of procurement management. Since in general the process of procurement and contract administration were performed in accordance with the agreed procedures, documents, and approved procurement plans, procurement performance is assessed as Moderately Satisfactory during most of the project implementation.

2.5 Post-completion Operation/Next Phase

53. The GoC has not provided an indication of a next phase or follow-up operation to the project. It is currently unclear how the project investments that were not completed under the AF will be financed and completed, for example, the VHC, the SUISA, and the hydrometeorological monitoring network. In addition, post-completion operation arrangements are not clear for key investments and activities that were supported by the project under the first loan, some of which are highlighted below:

Air quality monitoring equipment. The authorities that were allocated equipment under the project were to be responsible for continued operation and maintenance since project design included maintenance contracts for two years only. However, it is unclear how this will be achieved in the absence of significant funding from other sources. Possible exceptions include the AQM

2 The Contraloria General de la Republica audited the project from 2006 to 2009 and a private audit firm from 2010 until the project closing date.

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networks in Bogota and Medellin. Furthermore, the largest number of AQM equipment was provided to the IDEAM, with the intention of making it a point of reference and source of technical expertise to the Ministry of Environment and to CARs and AAUs. However, with the completion of most work under the project, the IDEAM’s budget for air quality work has been cut back, with the result that most of its air quality staff have been lost, and the equipment sits unused in storage.

Handwashing program. There has been interest by the GoC in the continuation of the HWP, as evidenced by the 2008 guideline for the National Policy for Food and Nutrition Security (CONPES Social 113), 3 which highlighted the need to continue implementing the HWP. Nevertheless, the program was not supported by the AF and has not been continued by the GoC subsequent to completion of Bank financing for the program.

54. With respect to monitoring environmental quality and sustainability indicators more broadly, there is a need to address timeliness of reporting, including on environmental parameters that are damaging to health (for example, PM2.5) and incorporation of environment-related health impacts under MDG 4. Unified reports on air quality are not up-to-date and do not include reporting on PM2.5, focusing exclusively on PM10 and gaseous pollutants. The second of two reports to date was published in 2012 covering data for 2007 to 2010. The National Planning Department generates a progress report on MDGs that includes some of the parameters included in Decree 1200 of 2004 but does not address environment-related health outcomes. The most recent publication was in 2013.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design, and Implementation

55. Relevance of objectives. The objective of the project, although somewhat unclear and lacking specificity, is generally relevant given Colombia’s significant environmental priority problems associated with poverty. Furthermore, the development objective is consistent with Colombia’s development priorities. The 2004 CEA conducted to underpin the design of the project and the SusDevDPL Program showed that the most costly problems associated with environmental degradation were urban and indoor air pollution, inadequate water supply, sanitation and hygiene, natural disasters (such as flooding and landslides), and land degradation. The CEA also highlighted the need to strengthen Colombia’s institutional and policy frameworks, especially those that addressed the identified environmental priorities.

56. The priorities identified by the CEA continue to be valid. A 2012 study conducted by the Bank showed that although the costs attributable to inadequate water supply, sanitation, and hygiene have fallen with time, it is still a significant cause of child

3 Política Social de Seguridad Alimentaria. Page. 37. CONPES No. 113. March, 2008

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mortality.4 That analysis also found that the cost attributable to the three environmental health risks—urban air pollution, indoor air pollution, and inadequate water supply, sanitation, and hygiene—remained unchanged at about 2 percent as a proportion of GDP although Colombia’s GDP had more than doubled since. In addition, urban air pollution surpassed inadequate water supply, sanitation, and hygiene as the single largest environmental health risk accounting for more than 1 percent of GDP. More recent analysis completed in 2014 further confirmed the importance of the identified environmental health risks and the role of ambient air pollution as the single largest environmental health risk accounting for 8,000 deaths or 52 percent of environment-related deaths in 2013 and 0.95 percent of GDP in 2013.5

57. The PDO is consistent with the FY12–16 Colombia Country Partnership Strategy (Report 60620-CO), which notes that environmental degradation continues to significantly affect public health and welfare and compromises the country’s potential for sustainable economic growth. The PDO is consistent with the pillars of the Country Partnership Strategy: (a) Expanding Opportunities for Social Prosperity; (b) Sustainable Growth with Enhanced Climate Change Resilience; and (c) Inclusive Growth with Enhanced Productivity.

58. The PDO is consistent with the government’s 2014–2018 NDP, Everyone for a New Country, which has a prominent focus on green growth that it seeks to achieve through policies that, among others, protect and ensure sustainable use of natural capital and improve environmental quality and achieve resilient growth by reducing vulnerability to natural disasters and climate change. Given the consistency between the project’s objectives and the country’s development priorities and with the Bank’s country and sectoral assistance strategies and corporate goals, this ICR rates relevance of development objective as Substantial.

59. Relevance of design. Given that the designs of the first loan and AF were distinct, this assessment examines the project design under the two loans separately:

60. First loan. The first loan included four components on environmental health; sustainable urban development; strengthening planning and oversight and environmental management; and IWRM. On the one hand, these components were very relevant to the priorities identified in the supporting analytical work and to the PDO. Further inspection, however, showed variations in the extent to which project activities supported achievement of project objectives:

The Environmental Health component rightly included the design and implementation of a HWP, to promote improved hygiene practices, which, as identified by the analytical work, was the most cost-effective way for reducing mortality and morbidity from inadequate water supply, sanitation, and hygiene.

4 Environmental Health Costs in Colombia: The Changes from 2002 to 2010. 2014. Washington, DC: World Bank 5 Larsen et al. 2014. Environmental Health in Colombia. An Economic Assessment of Health Effects and their Costs. Consultant Report prepared for the World Bank

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While the procurement of AQM equipment and studies to strengthen air quality management and monitoring were in keeping with the project objectives, it is noteworthy that at the time of project design, the revision and establishment of national standards for PM2.5 and PM10 in priority urban areas and update of major emission standards for mobile and nonpoint sources were recommended short-term priority measures for reducing environmental degradation associated with air pollution, which were not included in the project design.

With respect to the Sustainable Urban Development component, on one level the design of the component to support the implementation of strategies and recommendations outlined in the government’s Sustainable Urban Development Policy (CONPES 3305 of 2004) was in the right direction given its recognition of the need to improve living conditions in informal neighborhoods and promote densification of cities. However, while the design of the project supports specific elements outlined in the policy, it did not address key challenges to implementation of the policy identified by the analytical work, notably the absence of measures to prevent informal housing, and to incorporate environmental aspects in urban planning, many of which could be implemented in the short, medium, and long term primarily by the Ministry of Environment (then MAVDT), in coordination with other government agencies. The project did not address these issues that detracted from the relevance of the design given the project objective to address the environmental problems affecting the quality of life and wellbeing of the Colombian population.

By including support to the development of wastewater discharge standards and regulations for pollution fees and effluent standards, the design of the IWRM component was very relevant to the project’s objectives as it aimed to support the implementation of a draft Water Law prepared by MAVDT. Although the description of the component was later modified by Loan Agreement amendment to include support of knowledge and consultation activities related to water resources management reforms instead of the draft Water Law, the GoC was committed to meeting the law’s objectives through a series of decrees and associated reforms for water resources management. The draft Water Law was deemed necessary to reform the national legal framework for water resources management, in particular efficient and equitable allocation of water rights; promotion of public participation in water resources management; establishment of a user registry; regulations on management of water runoff and urban drainage; control of hazardous wastewater discharges; definition of ecological flow rate; and development of economic and legal instruments for water pollution control such as water pollution fees and effluent standards.

Planning and Oversight of Environmental Management component. The activities included in the design of this component were and are highly relevant for reaching the project’s development objective. The monitoring of indicators

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of environmental priorities associated with poverty alleviation was included in Decree 1200 of 2004. In addition, the need for a system for identification of environmental priorities associated with poverty reduction at local, regional, and national levels among the different actors of the SINA was established. For the design of environmental policies associated with inadequate water supply, sanitation, and hygiene and poor air quality, it identified the importance of conducting policy Strategic Environmental Assessments (SEAs). The project design included basic elements of consensus building and implementation of policies to address Colombia’s environmental priorities by including support to the MAVDT for conducting consultation and dissemination workshops and public outreach activities.

61. Since the project’s design to a large extent was consistent with the stated objectives, relevance of design for the first loan is rated Substantial.

62. AF loan. The following design omissions and changes to the AF detracted from the relevance of the design to the PDO:

Notwithstanding that the findings of the analytical work show that health damage from inadequate water supply, sanitation, and hygiene continues to be an important challenge, the design of the AF eliminated the HWP and missed an opportunity to assess the impact of the program on behavior change. Furthermore, the AF design did not include the Sustainable Urban Development component, precluding further opportunity to address urban environmental challenges that affect the quality of life and well-being of the Colombian population.

The design of the IWRM component had negligible relevance to the PDO. The second and third operations of the SusDevDPL Program supported (a) the submission of a draft law (of the NDP) with guidelines on water pollution control, including economic instruments; (b) registry of water users and uses; (c) integrated management and planning of watersheds; and (d) adapting the water resources unit in the MAVDT in line with the new water resource management reforms. The design of the AF included pilot activities for integrated management of river basins in the Guali and Chinchina river basins. However, the AF did not include activities that address the underlying causes of the environmental challenges related to water resources management that face the Colombian population notably including vulnerable groups, such as indigenous communities, small farmers, and other small users, communities, and municipalities. In particular, the design of the IWRM component did not address the need for regulations for water pollution control and effluents charge systems that are aimed at reducing pollution by pathogens and hazardous substances with potential adverse health impacts. These observations undermine the relevance of the component’s design to the PDO, given the actions supported by the SusDevDPL Program in relation to economic instruments for water pollution and the focus of the program to

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improve water quality (particularly pathogenic and toxic substances in water bodies) as expressed in the program’s outcome indicators.

The design of the AF phased out the design and implementation of reforms in several priority areas such as inadequate water supply, sanitation, and hygiene and ambient and indoor air pollution. As noted earlier, new focus areas under the IWRM component such as management of climate risks were neither identified by analytical work conducted by the Bank or GoC during preparation, nor supported by the SusDevDPL Program. In this respect, the project’s design is partially consistent with the stated objectives, and the relevance of design for the AF is therefore rated as Modest.

63. Overall relevance. The relevance of objectives is rated as Substantial. Relevance of design and implementation is rated as Modest with the first loan rated as Substantial and the AF as Modest. As a result, overall relevance is rated as Modest.

3.2 Achievement of Project Development Objectives

64. The PDO is vague and difficult to measure and is more oriented toward inputs and activities and less oriented to outcomes. The single indicator for achievement of the PDO, according to the PAD and Project Paper, is improved functioning of the SINA to set priorities related to sustainable development and achieve key results for the second and third phases of the SusDevDPL Program. A baseline for this indicator is established neither in the PAD nor in the Project Paper. The PAD for the first loan does not specify a target value for the PDO and the Project Paper for the AF specifies the target as ‘significant improvement of the monitoring of water and air quality information systems and capacity to implement environmental regulations and policies’. While no indication is provided of what would constitute ‘significant improvement’, the unit of measurement for the PDO provided in the Project Paper of the AF is ‘numbers of norms and policies strengthened or implemented’. At the same time, the project Results Framework for the AF notes that the extent of achievement of the PDO target will be measured by the extent to which the intermediate results indicators for the project are achieved.

65. Both the PDO indicator and the PDO target read as broad outcomes rather than as indicators and targets. Furthermore, there is a disconnect between the PDO and the indicator for measuring its achievement. There is an absence of a consistently clear logic in the chain from activities to the PDO, which does not make for ready assessment of the project’s achievement of the PDO and has a negating effect on the achievement of project outcomes.

66. While noting the above shortcomings, this ICR seeks to assess efficacy in achieving the PDO by examining the three facets of the PDO: (a) whether the project supported the design and implementation of policies and investments; (b) if so, whether those policies and investments were in line with the SusDevDPL Program framework; and (c) whether the supported policies and investments addressed the environmental problems affecting the quality and well-being of the Colombian population. The limitations of this assessment relate to the lack of specific, measurable, or time-bound targets set in relation to the

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outlined facets of the PDO. To address these limitations, the assessment draws on the results achieved against the intermediate outcomes indicators, as appropriate. A fuller description of the outputs of each component is provided in annex 2. It is important to note that many activities were conducted through consultancies financed by the project. In some cases, however, the final products of such consultancies have not been found, and in other cases only draft products are available. The absence of specific products, for example, reports, draft regulations, benefit-cost analyses of alternative interventions, institutional analyses, and design of bidding documents, from the consultancies has made it difficult to establish attribution or linkages, particularly of policy outcomes to the activities of the project.

Support for Design and Implementation of Policies and Investments

67. With respect to support for investments, under the Environmental Health component, investments supported by the project included provision of AQM equipment and related accessories to the networks of 16 CARs, 4 AAUs, and the IDEAM. A total of 45 monitoring equipment including 19 for PM2.5 monitoring, 23 for PM10 monitoring, and 3 samplers capable of monitoring both PM10 and PM2.5. It is noteworthy that it was the project that introduced measuring of the harmful PM2.5 in urban areas in Colombia for the first time. A national-level software system to integrate air quality data from regional and local environmental authorities was also developed. An HWP was also designed and implemented, including a national mass media campaign that aired for four months. Neither of the investments envisaged under the Environmental Health component of the AF loan, notably a VHC and the SUISA, and was completed and/or operational as of project closing. Under the IWRM component, the project supported 1 pilot on legalization of water use in Guali river basin and 1 pilot project on flood risk management for Barrancabermeja out of a total of 3 targeted pilots. Although the preliminary work such as modeling and definition of critical areas in the Sabana de Bogotá aquifer was conducted, the target to update and application of the aquifer management plan was not achieved. None of the targeted equipment intended to strengthen the hydrometeorological monitoring network (valued at US$1.5 million or 15 percent of the AF loan amount) was installed as a result of delays to the procurement process on the part of the Bank and the Borrower’s administrative restrictions, which jointly led to the non-execution of the envisaged project activities. The investments to strengthen the water resources monitoring network was not achieved but the project supported the development of modules or software applications for the water resources information system (Sistema de Información del Recurso Hidrico, SIRH) and the piloting of the information system for use of resources (Sistema de Información Sobre Use de Recursos – SIUR).

68. With respect to policies, while the project provided technical assistance to conduct several activities, for example, studies, training, development of software applications, and so on, evidence linking specific products prepared with the Bank loan to policy design and implementation is limited. Under the Sustainable Urban Development component of the first loan, the project was supposed to develop four regulations to support the Urban Development Law, in particular preventing human settlements in areas at risk. Although the associated outcome indicator was never tracked in the Implementation Status and Results Reports for that loan, the aide-memoire for the Mid-Term Review of the project

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states that three decrees to regulate the Territorial Development Law 388 were issued in 2006, namely Decrees 097, 564 and 2181. To date, no evidence has been found indicating that the aforementioned decrees were linked to specific products prepared with financing from the Bank loan, besides their mention in the referenced aide-memoire. The project provided technical assistance to support the implementation of the recently issued Presidential Decree 838 of 2005 on final disposal of solid wastes. Specifically, technical assistance was provided to 122 out of 200 targeted municipalities, from 21 departments of the country, and municipalities were trained in the formulation and implementation of Integrated Solid Waste Management Plans (Planes de Gestión Integrado de Residuos Sólidos, PGIRSs). However it is not known how many of the trained municipalities actually formulated and/or implemented PGIRSs or closed their open dumpsites following training. In addition, regulations for solid waste disposal that took into account legal, economic and financial instruments were not developed as envisaged in the project. Under the IWRM component, the first loan was supposed to develop 4 regulations originally intended to support implementation of the Water Law. Due to delays encountered at Congress, the Loan Agreement of the first loan was amended to refer to water resource management reforms instead of the Water Law. The result indicator and the amended Loan Agreement, however, respectively retained their focus on development of regulations for pollution fees and wastewater discharge standards. According to the GoC, the first loan supported the preparation, and adoption in 2010, of a document titled, Política Nacional para la Gestión Integral del Recurso Hídrico (National Policy for Integrated Management of Water Resources) and the following decrees: (a) Decree 1323 of 17 April 2007 on creation of the water resources information system; (b) Decree 1324 of 10 April 2007 for creation of water user registry; (c) Decree 1480 of 4 May 2007 for prioritization of some watersheds for the purposes of planning, management and intervention. No pieces of evidence (for example, reports, draft decrees, and so on) produced by the Project, that could link the Project to the aforementioned policies and decrees, have been provided by the GoC nor have they been found in Bank records. Furthermore, the regulations for pollution fees and wastewater discharge standards were not developed. Under the Planning and Oversight of Environmental Management component, the first loan was to support the development of planning, monitoring, and oversight instruments for policy implementation and to monitor indicators established in the CARs’ PATs as set out under Decree No.1200 of 2004 specifically by establishing and operationalizing an M&E system measuring progress on achievement of MDG-based indicators; 6 and accomplishment of at least three of six sustainable development objectives described in Decree 1200 of 2004. There is no evidence that the project supported the design or implementation of a system for monitoring the indicators. Furthermore, the MAVDT Resolution 964 of 2007 modified Decree 1200 of

6 As noted in the PAD, the MDG-based indicators referred to in the first project indicator were those related in particular to MDG 7, to ensure environmental sustainability, and MDG 4, to reduce child mortality through addressing principal threats to children under five (for example, morbidity and mortality related to respiratory and diarrheal illnesses). Decree 1200 of 2004 describes six groupings of sustainable development indicators as follows: (a) to strengthen actions aimed at the conservation of natural heritage; (b) to reduce the risk of water shortages; (c) to rationalize the consumption of renewable natural resources; (d) to generate jobs and income for sustainable use of biodiversity and sustainable production systems; (e) to reduce health effects associated with environmental problems; and (f) to reduce risks to populations associated with natural disasters.

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2004 and established different parameters from those originally contemplated, excluding those related to MDG 4. The project was however not restructured to incorporate these developments. The project was also to support the preparation of two policy SEAs for policy formulation on environmental health and fuel quality. The project supported a policy SEA on environmental health in Colombia, with emphasis on air pollution in urban centers. The assessment, however, diverges from established methodologies for the policy SEA and used secondary information, primarily the CEA conducted by the Bank. Based on information provided by the GoC, the SEA on environmental health served as an input for the restructuring of guidelines for a national strategy on environmental health approved by the CONPES 3550 of 2008, and the restructuring of the policy for prevention and control of air pollution.7 The evidence points to partial impact of the SEA on environmental health on design and implementation of policy reforms and related investments. The SEA on fuel quality was not conducted. Instead an environmental assessment of policies, plans, and programs for biofuels in Colombia, with emphasis on biodiversity was completed in 2008 by the MAVDT and the Institute for Research on Biological Resources ‘Alexander von Humboldt’. There is no evidence that this assessment utilized internationally developed methodologies. The report of the assessment was referenced in the formulation of a policy on subsidies for the production of ethanol. Furthermore, the scope of the evaluation is different from the SEA on fuel quality specified in the PAD.

Support for Policies and Investments in Line with SusDevDPL Program Framework

69. By design, the project was envisaged to assist the GoC in designing and implementing reforms supported by the SusDevDPL Program (see section 1.1), thereby supporting the government’s program to move toward achievement of MDG 7 to ensure environmental sustainability and its related Targets 9, 10, and 11; and MDG 4 to reduce child mortality through addressing principal threats to children under five (for example, morbidity and mortality related to respiratory illnesses and diarrheal diseases). To this end, the SusDevDPL Program sought to (a) improve the effectiveness and efficiency of Colombia’s SINA and (b) integrate principles of sustainable development into key sectors, with particular emphasis on protecting the most vulnerable groups.

70. The investments in AQM equipment and reporting on air quality through the Information System on Air Quality (Sistema de Información sobre Calidad del Air, SISAIRE) supported under the Environmental Health component were partially consistent with the SusDevDPL’s goal to integrate principles of sustainable development into key sectors, with particular emphasis on protecting the most vulnerable groups. However, opportunities to integrate principles of sustainable development into key sectors by mainstreaming environmental health concerns in those sectors were missed. This was particularly evident under the AF loan, with the non-completion of the VHC and SUISA, which provided entry points for potential coordination with other sectors such as education, health, and transport, for example. The design and implementation of the HWP was also consistent with the SusDevDPL in that it sought to prevent diarrheal illnesses. However,

7 Although these documents are referred to as policies by the GoC, they are actually discussions of policy recommendations, and not mandatory rules or regulations.

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as with the air quality-related activities, opportunities for mainstreaming environmental health concerns were missed. The actions in the Sustainable Urban Development component were minimally consistent with the SusDevDPL Program in that the project provided technical assistance to 122 municipalities to support closure of dump sites and supported preparation of a document on improving intersectoral coordination of public services, as well as three studies and fifteen workshops held throughout the country addressing improved urban living quality. However, given that the project did not develop the four targeted regulations to prevent human settlements in areas at risk, it was not consistent with the implementation of the integrated urban environmental policy supported by the SusDevDPL, which included the improve management of urban development as one of its focus areas. In addition, the extent to which principles of sustainable development were integrated in the solid waste management sector is unknown given that it is not known how many of the trained municipalities actually formulated and/or implemented PGIRSs or closed their open dump sites. Furthermore, the project did not achieve the development of regulations that take into consideration legal, economic, and financial instruments, which was a key aspect of implementing reforms supported by the SusDevDPL Program on final disposal of waste. With respect to the IWRM, the project was minimally consistent with the SusDevDPL Program, which supported the implementation of an action plan for improving laboratory accreditation and dissemination of water quality monitoring protocol; the submission to Congress of a draft Law with guidelines on water pollution control, including economic instruments; registry of water uses and users; integrated watershed management and planning; and adapting the water resources unit in the MAVDT in line with the new water resource management reforms. Consistent with the SusDevDPL, the project achieved the accreditation of 66 laboratories and completed one of two targeted pilot activities for integrated river basin management in Gualí watershed. The completion of a pilot project on management of climate risks was not a focus area of the SusDevDPL Program. Furthermore, the project did not address the development of regulations for pollution fees and effluent standards that are aimed at reducing pathogens and hazardous substances in water. This represented a significant departure from the SusDevDPL Program given the actions that the program supported in relation to developing economic instruments for water pollution control and improving water quality (particularly pathogenic and toxic substances in water that have potential adverse health impacts) also expressed by the program’s outcome indicators. With respect to the Planning and Oversight of Environmental Management component, the environmental health policy SEA was partially in line with the SusDevDPL owing to its departure from established policy SEA methodologies. The completion of the environmental assessment of policies, plans, and programs for biofuels in Colombia was not in line with the SusDevDPL Program framework. Following the modification of Decree 1200 of 2004 in 2007, the project did not monitor indicators related to MDG 4 to reduce child mortality. This was a clear departure from the SusDevDPL Program framework. The implementation of the SIUR was not a focus area of the SusDevDPL. The DNP has published progress reports on the MDGs covering 2006–2007, 2008, 2011, 2012, 2013, and 2014. However these reports do not mention environmental health considerations. In addition, CARs and AAUs do not report on this indicator in their reports on compliance with their PATs. This observation points to limited impact of the project toward achievement of the objective of the SusDevDPL Program to strengthen the effectiveness and efficiency of Colombia’s SINA.

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Support for Policies and Investments That Addressed the Environmental Problems Affecting the Quality and Well-being of the Colombian Population

71. Under the Environmental Health component, the selection of AQM and related equipment, and air quality reporting, focused largely on the less harmful PM10. It is well known that fine or ultrafine particles (measured as PM2.5 or PM1.0) are the air pollutants most closely associated with health damage notably through respiratory illness, lung cancer, chronic obstructive pulmonary disease, heart disease, and stroke. The project’s emphasis on PM10 is therefore not aligned with the objective to address the environmental problems affecting the quality of life and well-being of Colombians, nor the subcomponent’s focus on measuring the ‘most harmful pollutants’. Although the HWP was appropriate in concept given its focus on addressing environmental health issues affecting Colombians—specifically related to inadequate hygiene—the impact or efficacy of the program on the targeted population (measured as behavior change) was not measured and is therefore unknown. With respect to the Sustainable Urban Development component, no clear evidence of the impact of the technical assistance and training activities provided by the project on final disposal of solid waste has been found. Furthermore, of the three decrees supported by the reported to have been supported under this component, only two included aspects relating to developments in areas of risk where the most vulnerable people are likely to live. With respect to the IWRM component, given that the project did not support the development of regulations for pollution fees and effluent standards, the opportunity to address water-related problems that affect the environmental health of the Colombian population, notably the most vulnerable groups, was missed. Under the Planning and Oversight of Environmental Management component, the evidence with respect to the SEA on environmental health points to a partial impact of the SEA in affecting the quality of life and well-being of the Colombian population. Although the term ‘policy’ is used to describe documents such as the environmental health CONPES and the policy for prevention and control of air pollution, in reality these documents provide policy recommendations, which are different from mandatory environmental principles and requirements formulated by the GoC to direct actions to achieve long-term environmental health goals that affect the well-being of Colombians. The focus of the SEA on biofuels instead of fuel quality points to lack of impact with respect to addressing the environmental problems affecting the quality of life and well-being of Colombians, as does the lack of monitoring of indicators related to MDG 4 on child mortality.

72. Rating of efficacy. The efficacy in achieving the three facets of the PDO is rated as Modest. Some of the factors that contribute to this rating include (a) limited evidence linking specific products financed by the loan particularly to policy outcomes; (b) non-completion of key investments envisaged under the project (VHC, SUISA, hydrometeorological equipment, totaling about US$3 million or 18 percent of the combined loan amount); and (c) limited impact of products from the project on institutional strengthening in SINA institutions and in addressing the environmental problems that affect the well-being and health of Colombians.

3.3 Efficiency

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73. An economic analysis was not conducted during the preparation of the first and AF loans to provide a frame of reference for an economic analysis upon project completion. The annex on economic and financial analysis of the PAD for the first loan discusses the findings of the CEA, citing the CEA’s analysis of benefits and costs of a national HWP. However, this does not constitute an economic analysis of the Bank-funded project. While noting the project’s inability to complete all planned project investments, which undermined the project’s efficiency, the absence of an economic analysis at appraisal and paucity of data for doing such analysis preclude an accurate or meaningful economic analysis of the project.

3.4 Justification of Overall Outcome Rating Rating: Unsatisfactory

74. The overall outcome is rated Unsatisfactory for the following reasons: the ratings on relevance and objectives are both Modest. Given the shortcomings associated with key components, notably the non-completion of key investments as earlier noted, it is not expected that the efficiency rating would significantly surpass the ratings for relevance and objectives, if at all. The fact that it took almost ten years to complete the project, including three extensions of closing date, and that financial resources were not fully utilized (for example, about 15 percent of the AF, or almost 9 percent of the total loan, was cancelled) are also contributing factors.

75. While some of the project indicators were formally revised, the PDO and the PDO indicator remained the same for the first and AF loans. For this reason, a split assessment of the overall outcome was not considered necessary.

3.5 Overarching Themes, Other Outcomes and Impacts

(a) Poverty Impacts, Gender Aspects, and Social Development

76. Poor people and children under the age of five years disproportionately carry the economic burden associated with the leading environmental health risks in Colombia, namely, inadequate water supply, sanitation, and hygiene; poor ambient air quality; and poor indoor air quality. In this respect, by addressing two of these environmental health risks, the project by design has the potential of contributing to reducing the impacts of environmental health problems that contribute to keeping people in poverty. However, there has been no analysis conducted to assess the project’s impacts. Had the impact evaluation study for the HWP been conducted, it could possibly have provided some indication of the poverty, gender, or social impacts of the project with regard to behavior change among the audience targeted by the program. Core indicators on beneficiaries, including a specific indicator for female beneficiaries, were not tracked or measured during project implementation.

77. With respect to social development impacts in particular, the ESMFs put in place mechanisms to be used to ensure public participation with respect to activities related to IWRM. However, as noted, these mechanisms were not used as the relevant project

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activities were not completed and represent a missed opportunity to assess social development impacts of the project.

(b) Institutional Change/Strengthening

78. A notable institutional change associated with the project was the introduction, by the project, of PM2.5 measurement in urban areas in Colombia for the first time although the project’s overarching focus on the less harmful PM10 undermined this aspect. In addition, the project financed several consultancies addressing institutional aspects, resulting in production of reports (for example, on methodologies for estimating costs of environmental degradation with emphasis on air and water quality); personnel hires; trainings; and workshops. However, it is not clear how these translated to policies or other instruments for ensuring institutional behavior change and action. Key metrics related to strengthening the GoC’s progress on sustainable development indicators, notably on MDG 4, eventually were not monitored. There has been limited improvement in institutional capacity associated with the project, in the Ministry of Environment, CARs, and DNP. The evidence points to minimal impact of the institutional subcomponent of the project on the capacity of participating institutions (the Ministry of Environment, CARs, DNP) to design and implement policy reforms and investments that address the environmental problems that affect the quality of life and well-being of the Colombian population, particularly the most vulnerable groups.

(c) Other Unintended Outcomes and Impacts (positive or negative)

79. Not Applicable.

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops

80. Not applicable.

4. Assessment of Risk to Development Outcome

81. The risks facing the development outcome of the project are rated as Significant based on aspects related to key project activities. A number of factors including financing, government ownership, and institutional support contribute to this rating.

82. With respect to financing, given that a number of project activities were not completed, it is not clear how those activities will be financed to ensure their completion. With respect to the VHC, for example, the GoC has indicated that the MADS does not have the legal ability to construct and operate such a facility. While the MADS has conducted studies to explore the possibility of designing a public-private partnership that would construct and operate the facility, potential challenges to this approach include:8 (a) the volume of vehicle homologation tests would be inadequate to support the center due to the relatively limited size of the automotive market in Colombia; (b) to achieve sufficient

8 Weaver. 2015. Technical Evaluation of the Air Quality Sub-Components in Colombia Sustainable Development Investment Project. Consultant Report prepared for the World Bank.

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volume, the government would need to require conformity-of-production9 testing, which could impose significant costs on vehicle manufacturers and carry the potential of legal and reputational risks if their vehicles are found to be nonconforming—thus there is a possibility that vehicle manufacturers and importers could resist such a requirement; (c) the possibility of capture by vehicle manufacturers who would be the paying customers could be significant. The financial uncertainties of the type associated with the VHC represent a substantial risk to the expected outcomes of the project.

83. The risks related to sustained financing for the operation and maintenance of the AQM equipment are noted in section 2.5. Similarly, with respect to the production of the annual unified report on air quality, apart from the first report published in December 2007 and a second in December 2012, no further reports have been published. Furthermore, the IDEAM, which operates the integrated air quality information system, SISAIRE, has only a single staff member involved in maintaining the system, which raises concerns about the sustainability of the air quality reporting program.

84. The risk associated with government commitment is evident, for example, in the HWP, which was discontinued under the AF notwithstanding that the program was directly tackling a significant environmental risk affecting the health and productivity of the Colombian population. Project Implementation Status reports make reference to a campaign launched by the GoC in 2009 to prevent the spread of the H1N1 virus.10 However, the ICR team found no clear analysis or documentation to justify the discontinuation of the HWP, coupled with the absence of an evaluation of the program’s impact. In addition, as noted previously, the suggestion of the GoC policy documents to continue the program has not been followed, and the program has not been continued following the end of Bank funding. Furthermore, moving the responsibility for the program to the MVCT is questionable given that the Health and Education Ministries have a more natural alignment with the focus of the program.

85. The risks associated with institutional weakness of the DNP, Ministry of Environment, CARs, and AAUs relate to ensuring the design and implementation of policy reforms and related investments in line with Colombia’s environmental priorities. According to the analysis of the cost of environmental degradation completed in 2014, the costs attributable to the three environmental health risks—urban air pollution, indoor air pollution, and inadequate water supply sanitation and hygiene—remained unchanged at

9 Conformity of Production is a means of evidencing the ability to produce a series of products that exactly match the specification, performance, and marking requirements outlined in the type approval documentation. 10 The H1N1 campaign promoted handwashing and four additional behaviors and was conducted from the second semester of 2009 until the first trimester of 2010. On the other hand, the Bank-supported HWP lasted for four years, took a private marketing approach and promoted a single behavior (handwashing with soap at critical times). Studies conducted prior to the campaign showed that HWP messages were liked and easily remembered, and were used as a basis to develop the M&E Plan for the Program. Therefore, the H1N1 campaign is not deemed to have been sufficient reason to discontinue the HWP.

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about 2 percent of GDP despite the fact that Colombia’s GDP had more than doubled since. The overall risk to development outcomes is rated Significant.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance

(a) Bank Performance in Ensuring Quality at Entry

86. The first loan was prepared based on a solid foundation of analytical work compiled in the CEA conducted by the Bank. The analytical work was instrumental in informing the design of the project, notably the selection of project components.

87. The Bank was proactive in securing additional financial resources and expertise to support preparation of the project. Of note, the involvement of the global Handwashing Public-Private Partnership (HWPPP), coordinated by the Bank’s Water and Sanitation Program for Latin America, provided the opportunity to incorporate new approaches to changing behaviors based on knowledge and experience of the private sector, and research on behavior change. In addition, the project incorporated lessons from the experience of the new Handwashing Initiative in Peru including through study tours and engaged the participation of the coordinator of that program in the design of the HWP. The HWPPP provided technical support to the MAVDT during the preparation and design phases of the HWP. Specifically, the HWPPP conducted an enabling environment assessment in 2004 to identify potential partner institutions that could provide technical expertise and resources for the design and implementation of a communication campaign for the HWP. By loan approval in 2005, the MAVDT had gathered several expressions of interest resulting in a partnership of several institutions including government (for example, the Ministry of Health and Social Protection, Ministry of Education), private sector (for example, soap and cosmetics companies, radio, and TV channels), research institutes, nonprofit organizations, and development organizations (for example, UNICEF, Pan American Health Organization, Plan International). In addition, a behavioral baseline study was designed and subsequently implemented by partners—the Institute for Research and Development in Water Supply, Sanitation, and Water Resources Conservation, and the Swiss Center for Development Cooperation in Technology and Management—with financing from the Bank’s Water and Sanitation Program for Latin America. The Bank specialists also participated in preparation missions and provided technical support to project design efforts on air quality, solid waste management, and IWRM.

88. The shortcomings related to the designs of the PDO and the Results Framework, as discussed in earlier sections of this report, significantly undermine the rating of the Bank’s performance in ensuring quality at entry. There were additional deficiencies with respect to the Bank’s performance in ensuring quality at entry during preparation: (a) an economic analysis of the project was not conducted notwithstanding that the project supported investment activities; (b) key studies to inform the selection and design of investments were not completed—for example, pre-feasibility studies, designs, and cost-effectiveness studies for investments in AQM were not completed to inform equipment selection; (c) project preparation activities did not put in place mechanisms to ensure the participation of

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key stakeholders—CARs and AAUs—during project design and subsequent utilization of project-provided monitoring equipment by stakeholders. Furthermore, coordination protocols between such authorities and the MAVDT, and committees to supervise AQM investments were not put in place; (d) with respect to the IWRM component, terms of reference and studies, targeting the areas envisaged in the draft Water Law, including analysis of alternative interventions for water pollution control, were not performed. These could have contributed to mitigating the risks associated with nonapproval of the draft law by Congress; and (e) studies to analyze alternative regulatory options for final disposal of solid waste were not performed. According to the task team members involved in project preparation, limited funding contributed to the noted shortcomings, specifically with respect to the studies mentioned. As a result the project included some of the studies in the project’s design with a view to executing them during project implementation. This approach, however, limited the effectiveness of project outcomes. For example, the studies conducted for the AQM equipment appear to have had limited influence on guiding investments, particularly with respect to ensuring that equipment selection focused on the most harmful pollutant, PM2.5, and that the monitoring equipment provided to the environmental authorities consistently matched the requirements of their existing networks. Based on the above, the Bank’s performance in ensuring quality at entry is rated as Moderately Unsatisfactory.

(b) Quality of Supervision

89. The Bank was proactive in mobilizing additional financial resources to support the GoC, notably through the Spanish Trust Fund for Latin America and the Caribbean (SFLAC) in the amount of US$750,000. Some of this funding was used to provide additional technical support to the GoC. In particular, SFLAC funding was used to hire consultants to design the VHC.11 However, that consultancy resulted in the overdesign of the VHC, which grossly exceeded the budget allocated under the project and could not be implemented. It appears that no attention was given to the possibility of designing the center in stages, with the initial stage scaled to the budget available and in so doing curtailing costs while maintaining project objectives. As a result, the additional financial resources were not deployed in a manner that enhanced the likelihood of achieving the relevant project outcome. Furthermore, it appears that Bank supervision did not draw on relevant technical expertise to supervise the design of the VHC.

90. The Bank did not update the analytical basis for the design of the AF. As a result, opportunities to consolidate the outcomes of the first loan were missed, notably on the Environmental Health component, and the Sustainable Urban Development component, as were opportunities to ensure that the design of the IWRM component directly addressed the environmental issues underlying Colombia’s water resource management challenges.

11 The SFLAC funded several studies on various topics related to environment, institutional strengthening, wealth accounting, and economic assessment of health effects of air pollution. The ICR mentions the VHC given its relevance to the objectives of the project and its application during project implementation.

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The design of a system for identifying environmental priorities and for monitoring and reporting was and continues to be fundamental to achieve the PDO.

91. Under the AF, the initial or design cost estimates for some activities turned out not to be appropriate as was the case with the designed VHC, which turned out to cost thirteen times the budgeted amount; and the SUISA, and activities under the IWRM component, for example, the completion of the Aquifer Management Plan for the Sabana de Bogotá, which reportedly was not completed due to budget constraints. Similarly, regulation of water resources at the water basin level requires significant financial resources beyond what would be needed for studies, to ensure implementation and enforcement of said regulations by CARs.

92. In some cases, issues related to costing could have been the result of ambiguity of the description of activities in the Project Paper, which were not identified in the Bank’s quality assurance review process. For example, the terms ‘emissions testing laboratory’ and ‘vehicle homologation center’—a much more expensive concept, and one that is partly incompatible with the goal of realistic emission12 measurements—were interchangeably used in the Project Paper. Similarly the planned scope of the integrated environmental and health information system is unclear from the Project Paper, which in some sections of the document describes it as a ‘health and air quality information system’ and in other sections as a ‘unified environmental and health information system’. In the planning process for the SUISA, the concept expanded to the point that it is currently conceived as integrating all information relevant to health and the environment—including water quality, water supply, hazardous waste, subsoil, and so on. The resulting design has a distributed architecture covering at least 18 different government data systems housed in four different ministries. As of project closing, the development of the SUISA had reached only the second of five planned stages, and by completion of the overall conceptual design it will require agreement by at least 14 stakeholder agencies on the indicators to be incorporated in the database. As designed, this software project represents an extraordinarily complex and ambitious undertaking. These observations point to the need for more technical specialist support from the Bank during the design and supervision phases of the project.

93. It appears that the Bank underestimated the institutional weaknesses that were created as a result of the separation of MAVDT in 2011 into the MADS and MVCT. During the creation and consolidation of MADS, a significant part of the institutional memory for the project was lost as the original staff of MAVDT was disaggregated. However, the Bank did not take measures to mitigate the risks of undermining the integrity of the Coordinating Unit during the restructuring of the ministries.

94. Overall, supervision of the project had several significant shortcomings and was characterized by the absence of sustained and adequate technical expertise on the task team to supervise specialized topics; shortcomings in bringing project issues to the management’s attention and addressing implementation issues; lack of proactivity in

12 Unrealistic because homologation tests are typically carried out under specific conditions that do not reflect Colombian conditions.

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restructuring the Results Framework; lack of candor in reporting on progress toward achievement of objectives, which contributed to a delay in downgrading the development outcome rating of the project; and significant gaps in institutional memory of the project, evidenced by the absence of various key project-related documents from the Bank’s filing repository. The MTR under the first loan was not used for the purpose of identifying or mitigating risks to the achievement of project objectives or making course corrections in design or implementation. There was no MTR carried out under the AF. The Bank’s performance both on substantive and procedural aspects is considered to have been a key limiting factor to the performance of the Borrower.

95. During the period 2006–2013, supervision of Bank environmental safeguard polices was very limited. Supervision missions have limited records relating to monitoring of the environmental performance of the subprojects possibly because the project was classified as Environmental Category C. From the date of effectiveness of the AF in September 2012 and during 2013, there was no supervision of environmental safeguards, notwithstanding the new Environmental Category B classification and the activation of safeguard policies OP 4.01 and OP 4.04.

96. The Bank’s reporting on supervision was not consistently carried out in a rigorous manner that could facilitate course corrections as needed during supervision. A number of indicators were not reported on regularly, and efforts to improve the comprehensiveness of reporting such as ensuring that units of measurement were aligned with indicators; progress on targets (actual values) was aligned with objectives and indicators and targets were not concerted. Furthermore, opportunities to ensure that supervision ratings more closely reflected progress on actual values and based on specialist input were missed.

97. Inspection of aide-memoires and project ISRs shows that a total of 2113 Bank missions were conducted, including a final supervision mission in February 2015, that is, two months before loan closing. Fourteen missions were conducted during the first loan and seven following the approval of the AF in March 2012. Participation of technical specialists representing the major focus themes of the project was not consistent and for some themes was missing. Of the missions during the first loan, 2 included a water and sanitation specialist, 2 included a solid waste management specialist, and 3 included a water resources management specialist. None of the missions included an air quality management specialist or an environmental institutions specialist. During the AF, apart from the final supervision mission, no mission included a water and sanitation specialist, and 2 included a water resources management specialist. There were no air quality or institutional specialists on the missions. With the exception of one site visit before the approval of the AF, to visit potential sites for IWRM pilots, only one additional site visit was conducted during the February 2015 mission. There is no indication from project supervision records that site visits had been conducted to the locations of investments such as AQM equipment provided by the Bank, before the final supervision mission. The dearth of field visits by Bank teams including the relevant technical specialists had a negating effect on the ability to effectively supervise implementation of project activities on the

13 Five of these missions were dedicated to FM aspects.

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ground. Based on the above, the Bank’s performance in ensuring quality of supervision is rated Unsatisfactory.

(c) Justification of Rating for Overall Bank Performance

98. Some of the shortcomings in the Bank’s performance in ensuring quality of supervision though minor in themselves had significant impacts on project outcomes and could have been avoided. Significant shortcomings during supervision were typically not mitigated in an upstream manner despite the opportunity to do so during a long project implementation period. Furthermore, the Bank’s performance was a limiting factor to the Borrower’s performance. The Bank’s poor performance in ensuring quality of supervision significantly outweighs its performance in ensuring quality of entry. Based on the above, the Bank’s overall performance is rated Unsatisfactory.

5.2 Borrower Performance

(a) Government Performance

99. The government’s commitment to addressing Colombia’s priority environmental challenges has been evident in the broad-based reforms that it introduced to mainstream environment in sectoral policy consistent with its commitment to meet Millennium MDG 7, namely, to integrate principles of sustainable development into country policies and programs and reverse the loss of environmental resources, starting with its NDP 2002–2006 (Hacia un Estado Comunitario) and subsequently, create a positive policy context for preparing the project.

100. However, some weaknesses associated with the broader historical and current institutional context that could affect development objectives were not adequately addressed. The 2003 merger of most of the functions of the Ministry of Economic Development (housing, water, sanitation, and zoning) with the Ministry of Environment to create the MAVDT weakened the GoC’s ability to design and implement efficient and effective environmental policies as most of the institutional capacity of the former Ministry of Environment was reassigned to housing and water supply topics. Budgetary and human resources for environment were directed primarily to biodiversity conservation issues. Coupled with this, the environment unit in the DNP, which was a key factor in design and implementation of environmental policy in Colombia was dismantled further weakening the country’s institutional capacity for environmental management and sustainable development. The subsequent separation of the MAVDT in 2011 created institutional weaknesses, which appear to have been underestimated. During the creation and consolidation of the MADS, a significant part of the institutional memory for the project was lost as the original staff of the MAVDT was disaggregated. The GoC did not take measures to maintain the integrity of the Coordinating Unit during the restructuring. The government’s performance is rated Moderately Satisfactory.

(b) Implementing Agency or Agencies Performance

101. Notwithstanding the shortcomings of the project indicators, which contributed to limited use of the M&E framework, reporting by implementing agencies could have been

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more in line with project activities, consistently throughout project implementation. The project activities entailed numerous consultancies to address distinct tasks. Instead, tasks and consultancies could have been grouped in a manner that demonstrated clear linkages with the objectives of the respective subcomponent’s objectives, the outcome indicators, and the PDO. This could have facilitated better tracking of progress on achievement of the PDO, and delivery of fewer, albeit more strategic products with clear linkages to the PDO.

102. Ensuring the delivery, quality, and archiving of final products of consultancies could have been improved. A number of consultancy outputs were in draft form, with no final versions on file. In other cases, it appears that products were unaccounted for. Yet in other cases, the products were delivered but not used for the intended purpose. Following the separation of the MAVDT in 2011, some products and outputs from the project particularly from components and subcomponents that were not supported under the AF were unaccounted for.

103. Overall, the lack of a project implementation unit with permanent staff including technical specialists presented challenges to establishing clear modalities for interinstitutional coordination and ensuring technical quality on matters relating to the project. For example, notwithstanding the issues related to the design of the VHC, perhaps with better institutional coordination, it would have been possible to identify in an upstream manner that the MADS did not have the mandate to construct a VHC and to seek alternative solutions through interinstitutional arrangements with other government agencies to ensure the delivery of the VHC. In addition, arrangements were not clear for dealing with technical problems related to equipment procurement such as AQM equipment supplied to the Metropolitan Area of the Aburrá Valley (Área Metropolitana del Valle de Aburrá [AMVA]) Medellin, which sat in boxes and was never used because it was inoperable upon delivery, or equipment to the District Department of Environment (Secretaria Distrital de Ambiente, SDA) Bogotá, which did not match Bogotá’s real-time air quality network and consequently could not be used for routine operation. With stronger technical supervision such problems could have been avoided or addressed effectively. In addition, transition arrangements for regular operation of project supported activities and for completion of activities that were not completed during project implementation could have been identified by project closing. In the DNP, dearth of technical staff that could help design and implement the project, coupled with shortcomings in institutional memory, limited achievement of project outputs and outcomes. While activities implemented by the IDEAM helped build its capacity in environment-related data collection and management, there was not much clarity on issues such as which data should be collected and how to coordinate with other agencies, particularly CARs and AAUs.

104. Stronger relationships and coordination with partners could have been promoted by all implementing agencies. A few partnerships were established, for example, the public-private partnership for the HWP, which included government, private sector, and development agencies. The roles of the Ministries of Health and Education in the HWP were limited and not sustained over time. Given the transfer of the HWP out of the MADS it is not clear how partnerships with private sector and other development partners have been sustained or what their fate is.

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(c) Justification of Rating for Overall Borrower Performance

105. Overall, the Borrower performance rests heavily on the performance of the implementing agencies. For this reason, overall Borrower performance is rated as Moderately Unsatisfactory.

6. Lessons Learned

106. A number of lessons learned can be drawn from the design and implementation of the project as follows:

(a) The importance of analytical work. A strong analytical foundation is essential not only for the first loan but also for the AF, for identifying key environmental priorities and for designing an operation that effectively responds to addressing those priorities. No rigorous analysis was conducted by the Bank to assess the outcomes of the first loan as an input to inform decision making about the second loan.

(b) Linkages to the SusDevDPL Program and rationale for the AF. The project was intended to support the development and implementation of the reforms supported by the SusDevDPL Program, and the design of both operations was to be informed by the analytical work provided in the CEA. However, the design of the project, in particular the AF, was not well articulated with the design of the SusDevDPL Program. Furthermore, given that the reforms supported by the SusDevDPL Program had already been completed by the time of the approval of the AF, the rationale for the AF is unclear.

(c) Economic analysis of a project is essential to properly assess the efficiency of the project. Preparation of the first and AF loans did not include such analysis.

(d) Adequacy and consistency of technical expertise of the Bank team. It is important that the Bank team has the required technical expertise to effectively support the design and implementation of the project and provide guidance on technical issues to inform project decision making by the Bank task team and senior management. Such expertise should be ensured and consistent notwithstanding transitions in task team composition during project supervision. The Bank did not consistently provide adequate technical expertise on the project, notably during supervision.

(e) Robustness and intensity of Bank supervision. To enhance the likelihood of a project achieving its objectives, it is important to ensure adequate intensity of Bank supervision such that problems are caught and addressed in an upstream manner, with appropriate follow-up measures put in place, and that project momentum is sustained to increase the likelihood of timely and full delivery of project results. Such supervision should entail an MTR that is thorough and fielded with relevant experts in order that the project can be

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properly assessed and continuous improvements can be made to ensure that the project is on track to meet its development objectives.

(f) Vigilance and candor in raising issues for Bank management attention. It is important to ensure that issues are brought to the attention of Bank management in a candid and timely manner to increase the opportunity to make early course corrections, and to engage Bank management, as appropriate, in raising issues with the client at the right level needed to ensure the required attention. In particular, opportunities for needed depth and candor of reporting through the project ISRs were missed.

(g) Candid feedback to the client at every stage. The Bank’s performance plays an important role in influencing the Borrower’s performance and determining project outcomes. One important area where the Bank could have improved its performance, and consequently the Borrower’s performance, was in providing candid feedback to the client on issues that required attention. The deficiencies in technical expertise provided by the Bank are considered to have been a limiting factor to the Bank’s ability to provide consistent, candid feedback to the client, and to Bank management.

(h) Government ownership is essential to ensure that project activities translate to tangible products that have the ability to influence development outcomes. The project financed numerous consultancies to carry out various tasks. However, several products (for example, consultants’ reports, draft regulations, policy recommendations, benefit-cost analyses of alternative policies, institutional analysis, design of investments, and others) are either not available or have not been filed in the Bank and/or GoC documentation, and as a result, it has been difficult to establish clear linkages of those consultancies or activities in particular to policy outcomes. Bank task teams need to ensure that all documents, particularly products of consultancies financed by the project, are readily accessible by filing in the Bank’s repository of records.

(i) Common understanding of policy definition. The Bank and the client need to have a common understanding of the definition of a policy. Such definition should be grounded in the ability of the said policy to change the rules of the game that is, how actors or stakeholders act in decision making. Experience from the project shows that the term policy is used to describe a range of policy-related documents including preparation and discussion of documents such as the Air Quality Policy, or CONPES documents, which are not mandatory regulations but instead discussions of policy recommendations that do not carry the force to change the formal rules or regulations. This lesson is of particular importance to the project given its objective to support the design and implementation of policy reforms.

(j) Institutional coordination. Ensuring proper institutional coordination is fundamental. A project implementation unit with permanent staff, notably

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technical specialists, and a clear protocol for interinstitutional coordination among the national, regional, and local levels could have helped ensure interinstitutional coordination.

(k) Adequacy of project costing and financing. Adequate project costing is essential for delivering on project outputs and outcomes. Costing of the project design did not properly take into account the financial resources that would be needed to meet the project objectives. A key factor responsible for this was the lack of technical feedback on the costing of the project during design, both from the Bank and client sides.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners

(a) Borrower/implementing agencies

107. Inputs included in the draft ICR document were received from the MADS, IDEAM and DNP on the draft ICR, and incorporated in the final ICR as appropriate and according to evidence provided. The inputs received provided clarifications primarily to the Results Framework, the restructuring history, project achievements, and annex 2 of the draft ICR. The inputs received indicate the GoC’s continued commitment to sustaining project outcomes according to the institutional mandates of the respective relevant institutions. The comments also point to the importance of consistency in project technical supervision by the Bank notwithstanding changes in task team composition. In addition, the IDEAM provided a note of comments on the draft ICR in Spanish, which is included in annex 7. Salient aspects of that note are also included in English in the same annex.

(b) Cofinanciers

108. Not applicable.

(c) Other partners and stakeholders

109. None received.

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Annex 1. Project Costs and Financing

FIRST LOAN

(a) Project Cost by Component (in USD Million equivalent)

Information on actual estimates was not provided by the GoC or available in Bank project files. The GoC explained that cost reporting for the first loan (IBRD-7335) was conducted by investment categories and not by component as was the practice for loans to the GoC at the time.

Components Appraisal Estimate

(USD millions)

Actual/Latest Estimate (USD

millions)

Percentage of Appraisal

1. Environmental Health 3.22 Not available Not available 2. Sustainable Urban

Development 0.93 Not available Not available

3. Integrated Water Resources Management

0.40 Not available Not available

4. Planning and Oversight of Environmental Management

1.86 Not available Not available

Total Baseline Cost 6.41 Not available Not available Physical contingencies 0.67 Not available Not available Price contingencies 0.97 Not available Not available

Total Project Costs 8.05 6.99 124.38 Front-end fee PPF 0.00 0.00 0.00 Front-end fee IBRD 0.07 0.07 100.00

Total Financing Required 8.12 7.06 124.08

(b) Financing

Source of Funds Type of

Cofinancing

Appraisal Estimate

(USD millions)

Actual/Latest Estimate

(USD millions)


Borrower – 1.05 0.00 0.00 International Bank for Reconstruction and Development

Loan 7.00 6.99 99.86

Total Financing 8.05 6.99 86.83

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ADDITIONAL FINANCE LOAN

(a) Project Cost by Component (in USD Million equivalent) – IBRD financing

Components Appraisal Estimate

(USD millions)

Actual/Latest Estimate (USD

millions)


1. Environmental Health 1.50 0.52 35.00 2. Sustainable Urban

Development 0.00

0.00 0.00 3. Integrated Water Resources

Management 6.50

4.65 72.00 4. Planning and Oversight of

Environmental Management 2.00

1.59 79.00 Total Baseline Cost 10.00 6.76 67.60

Physical Contingencies 0.00 0.00 0.00 Price Contingencies 0.00 0.00 0.00

Total Project Costs 10.00 6.76 67.60 Front-end fee Project Preparation Facility

0.00 0.00 0.00

Front-end fee IBRD 0.025 0.025 100.00 Total Financing Required 10.03 6.79 67.90

(b) Financing

Source of Funds Type of

Cofinancing

Appraisal Estimate

(USD millions)

Actual/Latest Estimate

(USD millions)


Borrower – 1.05 1.05 100.00 International Bank for Reconstruction and Development

Loan 10.00 6.76 67.60

Total Financing 11.05 7.81 70.68

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Annex 2. Outputs by Component

Environmental Health Component Component Objectives Project Outputs

Air Quality Management – First Loan

Conduct studies to assess deficiencies and equipment needs among seven networks, targeted at supporting improvements in the monitoring of the most harmful pollutants (for example, PM2.5) and develop a consistent protocol for air quality monitoring based on the assessment.

A diagnostic study of the networks in the following environmental authorities was conducted—District Department of Environment, Bogotá (Secretaría Distrital de Ambiente, Bogotá); Metropolitan Area of the Valley of Aburrá, Medellin (Area Metropolitana del Valle de Aburrá, Medellin); Administrative Department of Environmental Management, Cali (Departamento Administrativo de Gestión del Medio Ambiente, Cali), Regional Autonomous Corporation of Cundinamarca (Corporación Autónoma Regional de Cundinamarca), Technical Administrative Department of Environment, Barranquilla (Departamento Técnico Administrativo del Medio Ambiente Barranquilla), Regional Autonomous Corporation for the Defense of the Bucaramanga Plateau (Corporación Autónoma Regional para la Defensa de la Mesta de Bucaramanga), Regional Autonomous Corporation of Risaralda (Corporación Autónoma Regional de Risaralda), and Regional Autonomous Corporation of Boyacá (Corporación Autónoma Regional de Boyacá)—including detailed descriptions of existing AQM networks. There was no assessment of whether the pollutants measured were the most critical, and recommendations to improve the networks were few, making the reports of limited value in guiding subsequent investments. The two reports produced addressed PM10 and Total Suspended Particles, but not PM2.5. A protocol for air quality monitoring was developed, providing a detailed reference for system designers and operators.

Develop software to transfer information collected by the networks to generate a national unified report on air quality and analyze data collected.

A data integration software system named SISAIRE began operation in 2007. The system displays a map showing the boundaries of 41 AAUs and CARs, which together cover all of Colombia. Data from AQM networks were used by the IDEAM to prepare a report on air quality in 2008 (covering 2007). Data from AQM networks were used by the IDEAM to prepare a report in 2008 (covering 2007) on air quality that presented data from 20 stations. That report referred to the SISAIRE as work in progress. Data from 14 AQM networks were used to prepare a second report produced in 2012 (covering 2007–2010). The 2012 report presents data analysis from 14 networks, based on data obtained either through the SISAIRE or through requests to the environmental authorities. It is not clear which stations reported to the SISAIRE. No reports have been produced subsequently.

Finance equipment to monitor PM2.5 and PM10, gas analyzers, and ozone, SOx and NOx passive samplers.

The project provided equipment to 21 monitoring networks, including 33 semiautomatic samplers (19 for PM2.5 and 14 for PM10), 9 automatic PM10 monitors, 3 sequential samplers designed to collect both PM10 and PM2.5 filters, 18 precision balances, and 3 gas samplers. Of these, one semiautomatic PM10 sampler and 3 automatic PM10 monitors were not operational as of April

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Component Objectives Project Outputs 2015, including 1 automatic PM10 monitor that never worked properly from the day of its delivery. The largest number of equipment (including 3 PM10 and 2 PM2.5 equipment), supplied to the IDEAM, is not operational due to budget constraints.

(a) Conduct studies to characterize particulate matter. (b) Develop a protocol for emission inventories and prepare emission inventories in 7 cities. (c) Conduct studies to characterize meteorological conditions to provide greater understanding of these conditions on pollutant dispersion and health impacts of air pollution. (d) Conduct studies to design mechanisms and incentives for local authorities to control air pollution in Colombia’s largest cities. (e) Prepare a national guide for air quality modeling.

(a) A study on characterization of particulate in seven Colombian cities was conducted. However, the study did not distinguish between coarse and fine particulate matter, thus exaggerating the importance of geological sources. (b) Several draft reports were produced for the development of emission inventory protocols, but the information was incomplete and mostly out-of-date, with the exception of information on mobile source emission factor models, which was up-to-date and fairly complete. However, the preparation of emission inventories for the seven cities was not completed under the project. (c) A study to characterize meteorological conditions and better understand their impacts on pollutant dispersion was conducted, which focused on PM10 and not PM2.5. The study included a case study of air quality modeling for the coal-mining region of Cesar Province. However, given that this area had only few sources of air pollution, it was not representative of urban areas. The strategic significance of the case study to the PDO is thus not readily apparent. Four additional studies were conducted on the health impacts of air pollution, three of which focused primarily on PM10. (d) With respect to studies to design mechanisms and incentives for controlling air pollution, the MAVDT produced a protocol for air pollution control from fixed sources in 2010. A draft report of a national guide on monitoring and control of volatile organic compounds was produced. These compounds were not identified by analytical work that underpinned project design, as a priority for air pollution control, and therefore fall outside the scope of the PDOs. Additional reports produced focused on economic instruments for liquid effluents, pollutant gases, and greenhouse gases. The scope of these reports had minimal linkage to the PDO. A report of a cost-benefit study for adoption of new emission standards for heavy-duty trucks was produced, which, however, contained minimal detail on methodology for calculation of costs and benefits. (e) A national guide for air quality modeling is not available.

Promotion of Improved Hygiene Practices – First Loan

Provide technical assistance and equipment, supporting the implementation of a program to promote improved personal hygiene and prevent hygiene-related diseases among the most vulnerable segments of the population.

The project supported the design and coordination of an HWP. The HWP was implemented in 13 departments. A behavioral study of hygiene practices was conducted, based on a sample of 500 families and 19 community households in Cali, Cartagena, Jambaló, Buenaventura, Bogotá, Manizales, Caucasia, and Tunji. The targeted population included women, mothers, or caretakers of children younger than 5, siblings, and elementary school children between ages 6 and 12. The study found that 5% of the target population practiced handwashing with soap at critical times.

Design a handwashing campaign by public and private partners to be implemented at national and local levels.

A public-private partnership comprising government agencies, private institutions, and development partners was established. A mass media (radio and television) handwashing

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Component Objectives Project Outputs campaign was designed and launched. The campaign aired for four months from December 2007 to March 2008. Reach achieved by mass media was over 10 million people monthly. A total of 10,200 teachers and civil servants, 1,500 women, and 7,300 elementary and high school students were trained to become agents of behavior change.

Conduct monitoring and evaluation of the HWP’s effectiveness.

A monitoring and evaluation plan was designed and tested. However, the impact evaluation was not implemented. As a result, the program’s effectiveness is unknown.

Component Objectives Project Outputs

Air Quality Management – AF Loan Install an emission testing center for vehicle and motorcycles.

Design of a VHC was conducted. However, installation of the center was not achieved.

(a) Develop a prototype SUISA. (b) Strengthen the air quality information system. (c) Strengthen the capacity of CARs and AAUs to implement regulations on noise pollution, monitor air quality, and implement technical norms on point source emissions.

Overall conceptual design for the SUISA was completed with a distributed architecture covering at least 18 different government data systems housed in four ministries. The SUISA is not operational. Agreement of at least 14 stakeholder agencies on the environmental and health indicators to be incorporated into the integrated database is currently being sought.

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Sustainable Urban Development Component Component Objectives Project Outputs

Improved Urban Living Quality (a) Develop guidelines on intersectoral coordination of public services (for example, water supply, sewerage, roads, public transportation, and titling) and carrying out regional workshops to increase understanding of the guidelines. (b) Strengthen public space indicators and updating the legal framework on public space. (c) Assess management instruments related to public transport systems, in cities with less than 600,000 inhabitants. (d) Develop a methodology to integrate mobility plans within the ten-year land use plans.

(a) A diagnostic report and guidelines and instruments for improving coordination between national policies for urban development, housing, drinking water, and basic sanitation were developed. (b) Topographic surveys were completed in 6 districts covering an area of 62 hectares in December 2008. (c) Fifteen regional workshops on improved urban living quality were conducted throughout the country.

Improved Management of Urban Development (a) Support improved planning for urban redensification and renewal, through design of a legal framework to promote more effective use of public property and the promotion of private sector involvement in redensification and renewal programs. (b) Improve the planning process for areas subject to urban expansion through development of guidelines that establish procedures and responsibilities of CARs and other environmental authorities in reviewing expansion plans. Provide technical assistance to CARs to support implementation of land management instruments in accordance with Regional Development Law No. 388. (c) Develop and implement decrees in support of Law No. 388.

(a) A pilot project on improved public space was designed in Buenaventura. A manual for urban standards for planning was developed. (b) The result indicator for this component was the development of regulations supporting the Urban Development Law, in particular preventing human settlements in areas at risk. The project did not finance regulations preventing human settlements in areas of risk. According to the GoC, the project supported the preparation of Decrees 097, 564, and 2181 of 2006. Of the aforementioned decrees, only the latter two included references to human settlements in areas of risk. No evidence has been found linking products funded by the project to the decrees. More evidence is needed from the GoC to support additional outputs on the components on Improved Urban Living Quality and Improved Management of Urban Development.

Final Disposal of Solid Wastes Provide technical assistance to support the Presidential Decree 838 of 2005 on Final Disposal of Solid Waste.

The project financed the preparation of a document on integrated management of hazardous wastes. This document represented a departure from the municipal or urban solid waste focus of this subcomponent. A consultancy to produce a guide on regionalization of landfills was contracted. The product of that consultancy is unaccounted for.

Develop regulations that take into consideration legal, economic, and financial instruments.

Regulations that take into consideration legal, economic, and financial instruments were not developed. A draft methodological guideline for closing or transforming open dumpsites was produced.

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Component Objectives Project Outputs Provide technical assistance to 200 municipalities through workshops and the dissemination of materials, related to closure of open dumps and opening of sanitary landfills.

The MAVDT, through its Directorate of Potable Water and Basic Sanitation, provided technical assistance to 122 municipalities from 21 departments of the country. In addition, officials of 39 public service companies responsible for disposal services and operation of waste disposal sites and 28 CARs responsible for authorizing and supervising plans for closure of open dump sites also received technical assistance. An 80-page presentation covering guidelines for cleaning and closure of open dump sites; formulation and implementation of PGIRSs, closure of dump sites and construction of sanitary landfills was used as training material for the participants. It is not known how many of the 122 municipalities that received technical assistance actually closed their open dumps.

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Integrated Water Resources Management Component Component Objectives Project Outputs

Integrated Water Resources Management – First Loan Implementation of the Water Law Develop regulations related to wastewater discharge standards and pollution fees.

Due to difficulties encountered during the approval process by Congress, in lieu of a Water Law, the GoC prepared a document titled Política Nacional para la Gestión Integral del Recurso Hídrico (National Policy for Integrated Management of Water Resources) adopted in March 2010. The project did not support the development of regulations related to wastewater discharge standards and pollution fees.

Strengthening Laboratory Accreditation Processes(a) Conduct an assessment of the analytical capacity of regional laboratories responsible for monitoring water quality and development of an action plan to improve laboratory monitoring. (b) Support the implementation of the action plan, providing technical assistance and training to improve water quality monitoring, and support the IDEAM in conducting audits to accredit five laboratories. (c) Support the dissemination of water quality monitoring protocols.

Sixty-six laboratories were accredited in up to 19 procedures following the National Technical Norm NTC-ISO/IEC 17025. The project significantly surpassed the accreditation target of five laboratories.

Improving Regional Water Resource ManagementSupport (a) development of a guide for modeling and forecasting availability of water resources and (b) carrying out of two pilots to test the guide at the regional level.

During 2009, ten workshops were conducted including on groundwater resource management, use and management of water resources, planning and managing water resources, risk management, and managing integrated SIRHs

Integrated Water Resources Management – AF LoanInstitutional Strengthening of the MADS in the Area of Water Resources Management (a) Strengthen capacity of the IWRM Directorate of the MADS to allow the Directorate to implement the National Water Resources Policy and the project. (b) Conduct capacity-building activities and training programs for CARs on technical topics, including IWRM, the borrower’s integrated water resources system, and the water regulations introduced to implement the National Water Resources Policy.

According to the MADS, eight consultants were hired under the IWRM Directorate to support the implementation of the National Water Resources Policy and the project. Training was provided to personnel from CARs and other stakeholders and government agencies through a postgraduate program (Specialization [Diplomado], 120 hours) in IWRM benefiting 394 individuals. The program format allows for virtual and on-campus presentations in four cities (Bogota, Medellin, Barranquilla, Cali). Specific training was provided for CARs preparing Watershed Management Plans and those implementing components of the SIRH.

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Integrated, Participatory River Basin/Aquifer Planning and Management Implement the National Water Resources Policy through development of planning and technical instruments for IWRM and testing and application of IWRM tools in pilot watersheds: (a) conduct project to update a participatory groundwater management plan for the aquifer of la Sabana de Bogotá and increase technical understanding of the aquifer through hydrological modeling, water quality modeling, and development of inventories of water users; (b) develop a participatory methodology to legalize water use rights and associated discharges through two pilot projects in Chinchina and Guali watersheds, including activities such as development of registers of water users and polluters in the referenced watersheds, preparation of water balances, and conducting consultation process described in the ESMF; (c) conduct a public communications strategy at the national level comprising a media campaign on legalization of water use rights and associated discharges; (d) develop guides and manuals for environmental zoning and definition of ecological flows and discharge monitoring protocols to strengthen CARs in future preparation of Watershed Territorial Management Plans (Planes de Ordenamiento y Manejo de Cuencas, POMCAs) and in administration of water rights and discharge permits; and (e) update and/or develop, in a participatory manner and through, among others, consultations with main water consumers of new proposed technical norms on water quality criteria for various water users and wastewater discharges to soils and coastal areas.

(a) Diagnostic work on the aquifer of Sabana de Bogotá (including modeling and definition of critical areas) was conducted, but the Aquifer Management Plan is yet to be updated and in full application. (b) A pilot on legalization of water use rights in the Guali river basin was developed. The pilot for the Chinchina river basin was not achieved. According to the MADS, censuses of water users were conducted, but formal registration as a user is based on request by the user. It is reported that more than 80% of users opted to be informal and that to address this CARs with the support of the MADS and IDEAM developed a public communication strategy and media campaign. The impacts of the communication strategy and media campaign are yet to be assessed. (c) Given the non-conclusion of the pilot in Chinchina river basin and the Aquifer Management Plan for the Sabana de Bogotá, the participatory and socialization mechanisms established in the ESMF were not applied in those contexts. (d) According to the MADS, a participatory process involving the IDEAM and CARs and other stakeholders has developed several guidelines, including guides for environmental zoning; discharge monitoring protocols for data collection of water users; and other subprocesses. Ecological flows have not been defined.

Management of Climate Risks in the Water Resources Sector Conduct a pilot project in coordination with the IDEAM to provide technical support to CARs for (a) development of a methodology to identify flood risk areas and (b) development of a methodology to elaborate flood risk

The MADS, in coordination with the IDEAM, prepared a methodology and guidelines for incorporating natural risks in the formulation of POMCAs (Anexo Gestión de Riesgo, MADS 2013). With respect to flood risk, an approach was defined and a pilot was conducted for Barrancabermeja with detailed flood maps and risk maps (scales 1:2000 and 1:10,000). No validation of the methodology has been found.

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maps at regional and local levels; and (c) validation of the methodology. Strengthening Water Resources Monitoring and Information (a) Develop additional modules for the IDEAM’s information system for water resources management, including modules describing the state of water resources, risks, and management indicators. (b) Strengthen the IDEAM’s national monitoring network through acquisition, assembly, and installation of 14 hydrological stations and other necessary equipment in areas selected by the borrower.

(a) Three applications for the SIRH were developed covering (i) supply or water resources availability, including access to existing climate and hydrometric information; (ii) demand, which provides detailed information on water users—data collection is responsibility of the CARs; (iii) water quality module, with sampling points, discharges, and results of numerical models describing quality parameters along streams; (iv) risks, with visual representations of extreme conditions, for areas where the specific studies have been completed, and the tools to assess flood and drought conditions along the main streams; and (v) water management module, associated with planning instruments, providing baseline information and access to POMCAs where available. (b) None of the hydrological stations and equipment were procured as a result of procurement delays and administrative and budgetary restrictions.

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Planning and Oversight of Environmental Management Component Component Objectives Project Outputs

Planning and Oversight of Environmental Management Component – First Loan Planning, Monitoring, and Oversight Instruments (a) Support development of planning, monitoring, and oversight instruments to support policy implementation. (b) Support the development of planning monitoring and oversight instruments to monitor sustainable development indicators14 established in the CARs’ Three-Year Action Plans. (c) Help the MAVDT and other SINA actors establish a baseline for monitoring progress. (d) Provide technical assistance to the MAVDT and other SINA actors to achieve sustainable development indicators.

Decree 1200 of 2004 set clear indicators based on Colombia’s environmental priority issues. The GoC subsequently issued a resolution in 2007 that phased out some of the indicators, such as on environmental health, which were priorities. The project was not restructured under the first loan to incorporate these new developments. There is no evidence that the project supported the design or implementation of a system of M&E that covered all the aforementioned six groups of indicators envisaged under Decree 1200 of 2004.

Institutional Strengthening of the DNP and MAVDT (a) Provide technical assistance and equipment to the DNP in the identification of environmental priorities. (b) Provide technical assistance and equipment to the MAVDT and DNP in developing information and regulatory instruments to strengthen their capacity to design and implement policies that address environmental priorities and to coordinate with key SINA actors. (c) Provide technical assistance and equipment to the MAVDT to disseminate environmental data more broadly to the public. (d) Conduct an assessment of institutional strengthening needs of the MAVDT and DNP.

Based on the 2004 CEA and Colombia’s 2002–2006 NDP, the environmental priorities were inadequate water supply, sanitation, and hygiene; outdoor and indoor air pollution; and natural disasters. There is no evidence that the project supported the development of a system to identify those priorities or of laws or decrees targeting them. The project prepared reports on methodologies for estimating the costs of environmental degradation with emphasis on air and water quality.

Strategic Environmental Assessments (SEAs) (a) Support the MAVDT and DNP in the design and implementation of two process-based SEAs on environmental health and fuel quality; (b) Analyze cost-benefit of different interventions to support policy definition under the SEAs on environmental health and

(a) The project supported the preparation of the policy SEA for policy formulation on environmental health in Colombia, with emphasis on air pollution in urban centers. The SEA used a methodology that is not consistent with its established methodologies, and secondary information, primarily from the 2004 CEA conducted by the Bank. (b) The SEA on fuel quality was not conducted. Instead, an environmental assessment of policies, plans, and programs for

14 The sustainable development indicators address regional priorities and are results-based, linked with the MDGs and span indicators for deforestation and conservation, green markets, rationalization, and optimization of consumption of renewable natural resources, reduction in health impacts associated with environmental factors, and reduction in vulnerability risk associated with natural disasters, among others.

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Component Objectives Project Outputs fuel quality. (c) Support development of guidelines for an environmental health policy.

biofuels in Colombia, with emphasis on biodiversity, was completed in 2008 by the MAVDT and the Institute for Research on Biological Resources ‘Alexander von Humboldt’. There is no evidence that this assessment utilized internationally developed methodologies. The report of the assessment served as a reference for formulating a policy on subsidies for the production of ethanol. The scope of the evaluation is different from the SEA on fuel quality specified in the PAD. (c) Based on information provided by the GoC, the SEA on environmental health served as an input for the restructuring of guidelines for a national strategy on environmental health approved by the CONPES 3550 of 2008 and the restructuring of the policy for prevention and control of air pollution.

Project Implementation and Oversight (a) Provide technical assistance and equipment to the MAVDT to support project implementation and oversight (b) Provide support for consultation and dissemination workshops and travel and public outreach activities (project brochure/newsletter).

(a) The MAVDT was responsible for coordination, oversight, and monitoring of the execution of the project. (b) A search of the MADS’ website does not yield information about the project that can be viewed by the general public/civil society. Project reports do not provide information with respect to communication of project results to civil society.

Planning, Monitoring and Oversight InstrumentsStrengthen the DNP’s capacity for intersectoral coordination to issue the environmental health policy, through establishment of roundtables, diagnostic studies at national and local levels, preparation of dissemination strategies, and communication of environmental health information.

The CONPES 3550 of 2008 establishes guidelines for the formulation of an Integrated Policy on Environmental Health, with the objective to strengthen integrated management of environmental health. According to the MADS, for construction of the policy, the National Commission for Environmental Health conducted thematic working tables, and the DNP worked on the methodology for estimation of costs of environmental degradation based on reviews of national and international models with emphasis on air and water quality.

Institutional Strengthening of DNP Strengthen the DNP’s capacity for IWRM through supporting the DNP with (a) establishment of institutional pathways; (b) implementation mechanisms; and (c) an action plan for the implementation of the National Water Resources Policy.

There is no evidence of institutional pathways or implementation mechanisms to strengthen DNP’s capacity for IWRM. The DNP prepared a document for a financial sustainability strategy for strengthening the hydrometeorological and oceanographic networks in the country. According to the GoC, the project financed a consultancy to identify parameters to be monitored, measurement protocols, and minimum conditions for adequate functioning of the hydrological, meteorological, and oceanographic networks, which provided input to the financial sustainability strategy mentioned above. In addition, a document was prepared related to policy guidelines for the Lake Tota. It is not clear how this latter document is linked to the project’s objectives.

Strengthen the DNP’s engagement in support of (a) implementing the SIRH in Colombia and (b) articulation

There is limited evidence that the project supported the strengthening of the DNP’s engagement in support of implementing the SIRH in Colombia or the articulation of the SIRH within the

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of the SIRH within the framework of Colombia’s SIAC for decision making.

framework of Colombia’s SIAC for decision making. A proposal for the design of the national center for hydrological modeling was prepared.

Support the DNP in the formulation of an institutional and financing strategy for upgrading of water resources monitoring and information systems, financed under Subcomponent 2.4 of the AF loan (Strengthening Water Resources Monitoring and Information).

According to the GoC, the project supported the formulation of a strategy for financial sustainability for the implementation of the national water resources programs.

Strengthen DNP’s capacity for the development of the second phase of the program to reduce Colombia’s fiscal vulnerability to disasters through (a) inclusion of risk management criteria within public investment projects; (b) establishment of mechanisms to guide reconstruction efforts in response to national disasters; (c) development of a strategy for the inclusion of risk management considerations in sectoral planning and investment programs; and (d) development of an environmental information management strategy for decision making in the areas of water resources and air quality management.

(a) No evidence of a strategy for the inclusion of risk management considerations in sectoral planning or within public investment projects. (b) No evidence of mechanisms to guide reconstruction efforts in response to national disasters. (c) No evidence of the project’s support of an environmental information management strategy for decision making in the areas of water resources and air quality management.

Planning, Monitoring and Oversight of Environmental Management Component – AF Loan Strengthening the Evaluation and Monitoring of Environmental Policies and the Reporting of Sustainability Indicators Strengthen the MADS’ Directorate on Territorial Planning and Coordination of the National Environmental System through (a) consolidation of methodologies and procedures for evaluation of environmental policies; (b) support to the beginning of the operations of the internet portals of the MADS, the CARs and AAUs as part of the Borrower’s strategy to facilitate greater information transparency and monitoring; (c) preparation of sustainable development reports (such as the reporting on the attainment of the MDGs); (d) adjustment of the electronic reporting systems of sustainability by CARs in accordance with updated regulations; and (e) development of information systems and provision of training in support of better monitoring and reporting of sustainability indicators by CARs and by environmental research institutes.

There is no evidence that supports the strengthening of the MADS’ Directorate on Territorial Planning and Coordination of the National Environmental System through (a) consolidation of methodologies and procedures for evaluation of environmental policies; (b) preparation of sustainable development reports (such as the reporting on the attainment of the MDGs); (c) adjustment of the electronic reporting systems of sustainability by CARs in accordance with updated regulations; and (d) development of information systems and provision of training in support of better monitoring and reporting of sustainability indicators by CARs and by environmental research institutes. According to the MADS, the project supported the design and implementation of the web portal for the SIAC; procurement of the ARCGIS software for the SIAC; and design and implementation of a module of the SIAC portal to disclose information on progress to attain MDG 7.

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Provide financing to conduct administration, management, evaluation, and general oversight of the AF project.

According to procurement records, four professionals were contracted for the project and for an audit of the project in two years.

Implementation of the Single Environmental Registry in the Manufacturing SectorStrengthen the IDEAM and the CARs, in coordination with the MADS, in the implementation of Colombia’s SIUR for the manufacturing sector through (a) conducting workshops and providing training to support implementation of the SIUR in the manufacturing sector and (b) developing indicators of natural resources use by the manufacturing sector.

According to information provided by the MADS, the SIUR for the manufacturing sector is being piloted in eight out of ten targeted environmental authorities. The MADS coordinated a workshop on the SIUR. A discussion of the methodology for data management processing took place in September 2014 with participation of six entities. According to the MADS, the project supported the reengineering of the information subsystem for the following four CARs: Regional Autonomous Corporation for Cauca (Corporación Autónoma del Cauca), Regional Autonomous Corporation of Cundinamarca (Corporación Autónoma Regional de Cundinamarca), Regional Autonomous Corporation for the Defense of the Bucaramanga Plateau (Corporación Autónoma Regional para la Defensa de la Mesta de Bucaramanga), Regional Autonomous Corporation for the Cauca Valley (Corporación Autónoma Regional del Valle del Cauca) and four AAUs, namely, District Department of Environment, Bogotá (Secretaría Distrital de Ambiente, Bogotá); Metropolitan Area of the Valley of Aburrá, Medellin (Area Metropolitana del Valle de Aburrá, Medellin); Administrative Department of Environmental Management, Cali (Departamento Administrativo de Gestión del Medio Ambiente, Cali), Regional Autonomous Corporation of Cundinamarca (Corporación Autónoma Regional de Cundinamarca), Technical Administrative Department of Environment, Barranquilla (Departamento Técnico Administrativo del Medio Ambiente Barranquilla). The SIUR includes indicators of natural resources use by the manufacturing sector.

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Annex 3. Economic and Financial Analysis

Per main body of this document, an economic and financial analysis of the project was not conducted as part of preparation of this report.

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Annex 4. Bank Lending and Implementation Support/Supervision Processes

(a) Task Team Members

Names Title Unit Responsibility/

Specialty Lending Kulsum Ahmed Practice Manager GENDR

Angela G. Armstrong Sr Natural Resources Mgmt. Specialist

GENDR

Yewande Aramide Awe Senior Environmental Engineer

GENDR

Daniel J. Boyce Practice Manager GGODR Eduardo Brito Senior Counsel LEGAF-HIS Robert M. Buckley Adviser, Urban Housing UDR - HIS Mauricio Cuellar Sr Transport. Spec. GTIDR

Jeannette Estupinan Sr Financial Management Specialist

GGODR

Natalia Gomez Senior Rural Development Specialist

GFADR

Masami Kojima Lead Energy Specialist GEEDR David Le Blanc E T Consultant OPD-His Kseniya Lvovsky Adviser GENDR Jose M. Martinez Senior Procurement Specialist GGODR Ernesto Sanchez-Triana Lead Environmental Specialist GENDR Jennifer J. Sara Director GWADR Andrea Semaan Consultant OPSOR Elisson M. Wright Junior Professional Associate CPF - HIS Supervision/ICR

Juan C. Belausteguigoitia Lead Environmental Economist

LCSEN - HIS

Peter M. Brandriss Operations Analyst GPSOS

Claudia Mylenna Cardenas Garcia E T Consultant LCSFM -

HIS

Carla Della Maggiora HQ Consultant ST GENDR

Jeannette Estupinan Sr Financial Management Specialist

GGODR

Maria Del Rocio Florez De Cilloniz

Consultant GENDR

Jose M. Martinez Senior Procurement Specialist GGODR Abel Mejia Consultant GWADR Juan D. Quintero Consultant GENDR

Horacio Cristian Terraza Sr Environmental Specialist LCSEN -

HIS

Marcelo Hector Acerbi Sr Environmental Specialist GENDR

Luz A. Zeron Sr Financial Management Specialist

GG022

Yewande Aramide Awe Senior Environmental Engineer

GENDR

Sandra Ines Amezquita – – Mauricio Bayona – –

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Names Title Unit Responsibility/

Specialty Diomedes Berroa Lead Specialist OPSPF Peter M Brandriss Operations Analyst GENDR Wilson Alid Casas Castro Consultant GWADR Rita E. Cestti Lead Water Resource

Management Specialist GWADR

Lelia Croitoru Consultant GENDR Alejandro M. Deeb Consultant GENDR Maria Del Rocio Florez De Cilloniz

Consultant GENDR

Elena Strukova Golub Consultant GENDR Juliana Gomez Arango Consultant – Shafick Hoossein Environmental Specialist GENDR Veronica Yolanda Jarrin Operations Analyst GENDR Irina I.Klytchnikova Senior Economist GFADR Abdelaziz Lagnaoui Lead Environmental Specialist GENDR Marie-Laure Lajaunie Lead Water Resource

Management Specialist GENDR

Ana Luisa Gomes Lima ET Consultant GENDR Ismael Fernando Loayza Careaga Senior Environmental

Economist GENDR

Silvia Moran-Porche – – Ana Nunez Sanchez Consultant GWADR Margarita Pacheco Montes – – Renan Alberto Poveda Senior Environmental

Consultant GWADR

Madhu Raghunath Senior Urban Specialist GSUUR Paula Restrepo Cadavid Urban Economist GSUUR Santiago Sandoval Valencia Language Program Assistant GENDR Geise B.Santos Program Assistant GENDR Daniel M Sellen Chair, Staff Association WBGSA Camila I.Sepulveda – – Hector Alexander Serrano E T Consultant GWADR David N. Sislen Practice Manager GSUUR Carolina Urrutia Vasquez Consultant – Carlos Vargas Bejarano E T Consultant GENDR Carlos Alberto Molina Prieto Social Development Specialist GSU04 Christopher Scott Weaver Consultant GENDR Sandra Ximena Enciso Gaitan Consultant GGODR Diana Ruiz Consultant GENDR

(b) Staff Time and Cost

Stage of Project Cycle Staff Time and Cost (Bank Budget Only)

No. of staff weeks USD Thousands (including travel and consultant costs)

Lending FY04 71.26 137.36 FY05 – 126.58

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FY06 – 56.73 FY07 – 8.84 FY08 – 6.24

Total: 71.26 335.75 Supervision/ICR

FY06 6.73 30.07 FY07 19.28 76.48 FY08 12.46 73.02 FY09 18.79 89.79 FY10 21.49 78.64 FY11 28.57 125.34 FY12 19.40 147.25 FY13 26.41 110.54 FY14 31.08 135.61 FY15 26.08 187.99 FY16 6.70 31.70

Total: 216.99 1,086.43

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Annex 5. Beneficiary Survey Results

Not applicable.

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Annex 6. Stakeholder Workshop Report and Results

Not applicable

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Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR

1. This annex summarizes salient aspects of the note of comments provided by IDEAM in relation to Component 2 of the AF loan. Also included in this annex is the note of comments in Spanish as provided by IDEAM.

2. The comments note IDEAM’s role as the responsible entity for coordinating the implementation of the Information System for Water Resources (Sistema de Información del Recurso Hidrico – SIRH) and for administration of the Information System on the Use of Resources (Sistema de Información Sobre Uso de Recursos- SIUR).

3. With respect to the SIRH, the notes the following areas of functionality of the system i.e., software applications for: (a) management of water users; (b) management of water sources; and (c) consultations on statistics on water users. In addition the notes highlight specific results achieved in 2014 and 2015, including among others: availability of information on historical series of levels, flows and sediments reported by IDEAM stations for queries in SIRH; a 2014 publication titled Implementation of the SIRH in Colombia; workshops delivered to environmental authorities for validating and reporting information in the SIRH; establishment of a virtual learning platform with course content on management of water-related information; distribution of 10 electronic bulletins distributed monthly to the SIRH users and other interested parties; reports on water quality; five new nodes of the SIRH.

4. The notes clarify that resources from AF loan were used for including new modules per Article 7 of the framework of Decree 1323 of 2007, in fulfilment of IDEAM’s legal mandate and role as coordinator of the SIRH.

5. The note also points out the regulatory antecedents of the Single Environmental Registry (Registro Unico Ambiental – RUA) for the manufacturing sector (RUA manufacturero), noting the obligations of establishments whose principal productive activities are included in relevant industrial classifications adopted by Colombia, which require environmental licenses, permits, concessions and other environmental authorizations. Since 2013, 6 CARs have been trained on processes for implementation and transmission of information to the SIUR. The note highlights specific results including, among others: four files with evaluation of information quality for the series 2009–2013; two workshops on socialization of assessments conducted by the environmental authorities on data processing and management, and on socialization and adjustments of results of the data management processes; visits to 8 environmental authorities; closure of 73 registers for the visit 8 environmental authorities visited; transmission of 126 registers by 6 prioritized environmental authorities for piloting the SIUR; reports on water quality.

6. Finally, the note discusses the procurement and installation of about 14 hydrological stations and other equipment envisaged under Subcomponent 2.4 for strengthening the national water monitoring network in areas selected by the Borrower. This activity was not executed. The note mentions the difficulties associated with national budgeting on the Borrower’s part and the delays to the procurement review process on the Bank’s part. The full text of IDEAM’s note of comments follows.

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En atención al borrador del Informe de Resultados de los Préstamos BIRF 7335-CO y 8133-CO enviado por el Banco Mundial-BIRF, en el que se refleja una calificación insatisfactoria, con todo respeto se presenta las siguientes precisiones referentes al Préstamo 8133-CO:

1) El Instituto de Hidrología, Meteorología y Estudios Ambientales-IDEAM conforme a lo señalado en el Contrato de Empréstito No. 8133-CO del 20 de junio de 2012 presentó al BIRF unas acciones que adelantaría para el Desarrollo Sistema de Información del Recurso Hídrico – SIRH, dentro del Componente Manejo Integral del Agua. Así mismo, el IDEAM enseñó al BIRF unas actividades para mejorar la calidad y representatividad de los datos capturados y consolidados del universo del Sector Manufacturero, el cual se encuentra inmerso en el Subsistema de Información sobre Uso de Recursos Naturales Renovables – SIUR. Lo anterior, teniendo en cuenta que el IDEAM es la entidad del Estado Colombiano responsable de la implementación del Sistema de Información del Recurso Hídrico – SIRH; y, como coordinador del Sistema de Información Ambiental, es el responsable de la administración del SIUR, para lo cual deberá mantenerlo y operarlo.

2) Las acciones que adelantaría con los recursos del empréstito BIRF-8133-CO tenían como finalidad lo siguiente: 2. 1) Contribuir al uso y mejoramiento de sus aplicativos, con el fin de que se constituyera como una herramienta efectiva para la gestión, captura y análisis de información hidrológica, que fuera útil para orientar la toma de decisiones en materia de políticas, regulación, gestión, planificación e investigación. 2.2) Consolidar el universo de análisis del sector manufacturero, con el fin de mejorar la calidad y representatividad de los datos capturados hasta el momento en este subsistema.

3) Con base en lo anterior, se presentó un Plan de Adquisiciones que fue aprobado, el cual se refleja de la siguiente manera:

Items Componentes 2 COMPONENTE MANEJO INTEGRAL DEL AGUA 2.4. INFORMACIÓN Y MONITOREO DEL RECURSO HÍDRICO (IDEAM) Desarrollo Sistema de Información del Recurso Hídrico - SIRH 2.4.1. CONSULTORIAS 2.4.2 BIENES 3 COMPONENTE PLANIFICACIÓN, SEGUIMIENTO Y CONTROL A LA

GESTIÓN AMBIENTAL 3.3 SISTEMA DE INFORMACIÓN DE USO DE RECURSOS SIUR (IDEAM) 3.3.1 CONSULTORIAS

4) En cuanto al Sistema de Información sobre el Recurso Hídrico-SIRH, el IDEAM desde el 2013

contaba con las siguientes funcionalidades: 4.1. Aplicativo para la gestión de usuarios del agua. 4.2. Aplicativo para la gestión de fuentes hídricas. 4.3 Aplicativo para la consulta de cifras estadísticas sobre usuarios del agua

5) A partir de lo anterior, para el año 2014 y 2015 (hasta el 29 de abril) el IDEAM se planteó los siguientes objetivos:

5.1 Articular la información de niveles, caudales y sedimentos que gestiona el Ideam para analizar la Oferta, de forma que pueda ser usada por otras entidades. 5.2. Generar estrategias para mejorar la cantidad y calidad de la información. 5.3. Ofrecer canales de difusión de la información del SIRH que incluya estadísticas de tendencias sobre el estado y comportamiento de la calidad, oferta, demanda, gestión y riesgo asociado al agua.

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5.4. Generar mecanismos de Interoperabilidad de forma que en el SIRH se pueda consultar información de otros actores que gestión información del Agua. 5.5. Datos de referencia: características de las cuencas, conflictos asociados al agua, así como el cálculo del índice de retención y regulación hídrica asociado a una estación, y que sirva de referencia para una región. 5.6. Reportes sobre calidad del agua. 5.7 Dar continuidad a las tareas de fortalecimiento de las Autoridades ambientales mediante la instalación de al menos 5 nuevos nodos del SIRH.

Y en desarrollo de lo contratado para el año 2014 y 2015 (hasta el 29 de abril) el IDEAM alcanzó a cumplir en un cien por ciento (100%) los objetivos planteados, y se obtuvieron los siguientes resultados:

6.6. Información de series histórica de niveles, caudales y sedimentos reportados por las estaciones del IDEAM disponibles para consulta en el SIRH 6.7 Documento sobre criterios de calidad de información a disponer en el SIRH, publicado en el 2014 con título "Implementación del SIRH en Colombia" 6.8. Talleres de acompañamiento virtual o presencial a las Autoridades ambientales para hacer la validación y reporte de información en el SIRH. 6.9 Plataforma virtual de aprendizaje establecida con contenidos de un curso sobre gestión de información asociada al agua. 6.10 Siete (7) nodos del SIRH establecidos en entidades socias: software del SIRH instalado transmitiendo información al nodo central del IDEAM. 6.11 Cien por ciento (100%) de las solicitudes de información a la cuenta [email protected] atendidas. 6.12 Portal web del SIRH establecido con información sobre lineamientos para la estructuración y análisis de información, avances en la consolidación de datos, novedades sobre gestión e investigación del agua en el país. 6.13 Diez (10) boletines electrónicos distribuidos mensualmente entre los usuarios del SIRH y otros contactos de interés. 6.14 Evento de difusión sobre herramientas para la gestión e intercambio de información. 6.15 Gráficos con funcionalidades para descarga en Excel de la información. 6.16 Gráficos con información de puntos de monitoreo del IDEAM provenientes del Módulo de Físico Química. 6.17 Nuevos gráficos sobre comportamiento de niveles, caudales y sedimentos establecidos 6.18 Instrumentos de captura y consulta de información asociada al riesgo desarrollados 6.19 Visor geográfico con información del SIRH y facilitando acceso a datos detallados. 6.20 Modulo para documentación de conflictos asociados al agua. 6.21 Reporte del cálculo del índice de retención y regulación hídrica asociado a una estación. 6.22 Reportes sobre calidad del agua. 6.23 Cinco (5) nuevos nodos del SIRH.

6) Ahora bien, el IDEAM destinó los recursos del crédito para el Desarrollo Sistema de Información del Recurso Hídrico – SIRH para incluir nuevos módulos dentro del marco del Decreto 1323 de 200715,

15“Por el cual se crea el Sistema de Información del Recurso Hídrico, SIRH”.

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específicamente el artículo 7 del decreto precitado que señala que el Instituto de Hidrología, Meteorología y Estudios Ambientales -IDEAM tiene por competencia coordinar el Sistema de Información del Recurso Hídrico SIRH, definir la estrategia de implementación y fijar los mecanismos de transferencia de información, así como el de compilar la información a nivel nacional, la operación de la red básica nacional de monitoreo y la gestión y procesamiento de datos, lo anterior bajo las Aéreas temáticas del SIRH que de acuerdo al artículo 5 del mismo decreto, son: Disponibilidad Hídrica, Calidad Hídrica, Estado actual del recurso hídrico y Gestión Integral del Recurso Hídrico. Así mismo, en cumplimiento del artículo 9 del decreto precitado las Corporaciones Autónomas Regionales, las Corporaciones para el Desarrollo Sostenible, las Autoridades Ambientales de los Grandes Centros Urbanos, las creadas por el artículo 13 de la Ley 768 del 2002, deberán aplicar los protocolos y estándares establecidos en el SIRH para cumplir la función de realizar el monitoreo y seguimiento del recurso hídrico en el área de su jurisdicción. Por ello, dentro del desarrollo del Proyecto se dio apoyo a las entidades precitadas para que se ajusten y apliquen los esquemas y pautas señalados en el SIRH. Como conclusión, el IDEAM por mandato legal, regulado en este caso por un Decreto Nacional, debe cumplir con las funciones de coordinador del Sistema de Información del Recurso Hídrico SIRH. Por lo tanto, debe adelantar todas las actividades para la consecución de recursos para poder definir la estrategia de implementación, fijar los mecanismos de transferencia de información, compilar la información a nivel nacional, y tiene a su cargo la operación de la red básica nacional de monitoreo y la gestión y procesamiento de datos. Es por ello, que el IDEAM destinó los recursos asignados a través del monto del financiamiento adicional del crédito BIRF-8133-CO al componente 2 para el Desarrollo Sistema de Información del Recurso Hídrico – SIRH, como así lo hizo con recursos de la Nación.

7) En lo que se refiere al RUA Manufacturero su antecedente se generan a partir de la expedición de la Resolución 0941 del 26 de mayo de 200916, que ordenó reglamentar el protocolo para el monitoreo y seguimiento del SIUR y la obligatoriedad para el diligenciamiento del RUA en cada uno de los sectores productivos iniciando con el sector manufacturero. A partir de lo anterior, se adopta el protocolo para el monitoreo del subsistema de información acerca del uso de recursos naturales renovables-SIUR para el sector Manufacturero con la expedición de la Resolución 1023 de 201017.

El RUA para el sector manufacturero debe ser diligenciado por los establecimientos cuya actividad productiva principal se encuentre incluida en la Sección D – Industrias manufactureras, divisiones 15 a 37 (rango 1511 a 3720) de la Clasificación Industrial Internacional Uniforme – CIIU Rev. 3.0 adaptada para Colombia por el DANE o aquella que la modifique o sustituya, que de acuerdo a la normatividad ambiental vigente, requieran de licencia ambiental, permisos, concesiones y demás autorizaciones ambientales, así como, aquellas actividades que requieran de registros de carácter ambiental.

Desde el año 2013, se trabajó en la capacitación de seis (6) CARs en los temas de procesos de implementación y transmisión de información al SIUR para el sector manufacturero. Para los años 2014 y 2015 (hasta el 29 de abril) se plantearon los siguientes objetivos: 7.1) Fortalecimiento del IDEAM y las CARs como resultado de la optimización del sistema de información sobre el Uso de Recursos Naturales de Colombia para el sector manufacturero.

16 “Por la cual se crea el Subsistema de Información sobre Uso de Recursos Naturales Renovables – SIUR y se adopta el Registro Único Ambiental – RUA” 17, “Por la cual se adopta el protocolo para el monitoreo y seguimiento del Subsistema de información sobre uso de recursos naturales renovables – SIUR para el sector manufacturero”.

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7.2) Mejoras funcionales realizadas al aplicativo y optimización y desarrollo de indicadores.

A partir de lo anterior, para el proyecto IDS-IDEAM se contempló la participación de ocho (8) Autoridades Ambientales previamente priorizadas a partir de una serie de criterios definidos a fin de identificar aquellas que representaran la mayor parte de la muestra contenida en la base de datos del Registro Único Ambiental para el sector manufacturero – RUA MF.

Se alcanzaron en un cien por ciento (100%) los objetivos, que se concretaron en los siguientes productos:

Cuatro (4) archivos con la evaluación a la calidad de la información para la serie 2009-2013. Taller 1: Socialización de las apreciaciones realizadas por las Autoridades Ambientales en el

tema de procesamiento y gestión de datos. Diecinueve (19) archivos con los reportes síntesis de los indicadores, para la Serie de tiempo

(2009-2012) Archivo en Excel con la base de datos total del Sector de la Manufactura a nivel nacional

(NIT, Razón Social, Nombre establecimiento, Dirección, Departamento, Coordenadas, Numero de empleados)

Ocho (8) Autoridades Ambientales visitadas Identificación de datos atípicos dentro de la Serie 2009-2012 Cierre de 73 registros para las 8 Autoridades en total para la serie 2009-2012, como

respuesta a la realización de las visitas Trasmisión de 126 Registros por parte de las Autoridades priorizadas al SIUR, para la serie

mencionada Taller 2: Socialización y ajustes de los resultados de los procesos de gestión de los datos

con las Autoridades Ambientales, realización de Matriz DOFA Implementación en las Autoridades Ambientales del protocolo para la revisión de los datos

registrados en el RUA MF por medio del programa estadístico «R» Presentación de metodología para llegar a la caracterización del proceso de gestión de los

datos reportados al SIUR MF por parte de las Autoridades Ambientales Veintinueve (29) Archivos en Excel con las hojas metodológicas (metadato) correspondientes

a los Indicadores calculados en el RUA Manufacturero, con información sobre cómo se calculan, qué representan y sus responsables.

Diseño y desarrollo de la herramienta de Soporte al Usuario SIUR, el cual permitirá el soporte eficiente y eficaz de los diferentes requerimientos de los usuarios del SIUR.

Configuración de la BD para la adición de la nueva autoridad ambiental Área Metropolitana de Bucaramanga – AMB, para que pueda empezar a realizar la implementación del RUA MF.

Levantamiento de 10 fichas técnicas para perfil “Establecimiento” - 5 perfiles “Autoridad Ambiental”, en las cuales se incluye los campos del Informe de Cumplimiento Ambiental – ICA que serán integrados al formulario de captura RUA MF.

Evaluación de los indicadores formulados a la fecha dentro del RUA para el Sector Manufacturero, así como la optimización de los mismos.

Participación en reuniones encaminadas a dar desarrollo al proceso de optimización de los registros del IDEAM, en el cual el RUA MF es parte fundamental.

Datos de caracterización de las cuencas Modulo para documentación de conflictos asociados al agua, Reporte del cálculo del índice de retención y regulación hídrica asociado a una estación. Reportes sobre calidad del agua Cinco (5) nuevos nodos del SIRH

8) En cuanto al fortalecimiento a la red red de monitoreo nacional del IDEAM por medio de la adquisición, montaje e instalación de cerca de catorce (14) estaciones hidrológicas y demás equipo

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necesario para el fortalecimiento de la red nacional de monitoreo del agua en áreas que debe seleccionar el Prestatario, es necesario precisar que no se pudo concretar la compra por dificultades presupuestales nacionales referidas la aplicabilidad del principio de la anualidad del gasto público.

Con el propósito de optimizar el levantamiento de la información básica sobre Hidrología y Meteorología el IDEAM identificó como parte del Financiamiento Adicional del Programa IDS, la necesidad de hacer más eficiente la toma de esta información por medio de la adquisición de equipos e instrumentos hidrometeorológicos de última tecnología que permitieran el monitoreo de forma autónoma, confiable, eficiente y continua. Con la adquisición de estos equipos e instrumentos el IDEAM mejoraría su eficiencia en la operación y análisis de la información hidrometeorológica que requiere el país para la elaboración de los diferentes estudios e investigaciones y en el seguimiento al comportamiento de las variables hidrometeorológicas y ambientales, aportando de esta forma capacidad de respuesta ante la ocurrencia de eventos extremos.

Con base en lo anteriormente expresado y la inclusión de estas adquisiciones como parte del Plan Operativo Anual - POA 2014 y del Plan de Adquisiciones y Contrataciones del préstamo BIRF 8133-CO, el IDEAM elaboró los Documentos de Licitación Pública Internacional 01 de 2014-IDS-IDEAM los cuales fueron sometidos a No Objeción del BIRF- Banco Mundial el 11 de abril de 2014, posteriormente y después de un proceso de revisión técnica y de adquisiciones por parte del Banco se obtuvo la No Objeción al citado Documento el pasado 13 de junio de 2014.

A partir de la No Objeción y de acuerdo con el procedimiento estipulado en las Normas de Contrataciones con Préstamo del BIRF, el 19 de junio de 2014 se publicó el Llamado a Licitación en el DEVELOPMENT BUSINESS, en el SECOP y en la Web del IDEAM.

El 1 de agosto de 2014, se estableció el recibo de las Ofertas, obteniendo las siguientes ofertas:

Nombre o Razón o Denominación Social o Empresa Licitante Hora entrega de Oferta

PARA EL LOTE No. 1: 1. CONSORCIOCOMUNDIAL-SUTRON 2:11 p.m. 2. SIAP+MICROS+METRONOVA 2:15 p.m. 3.- VANSOLIX SA 2:28 p.m, 4. ACERTA LTDA 2:30 p.m.

PARA EL LOTE No. 2: 1. SANAMBIENTE S:A:S 12:56 p.m. 2. ACERTA LTDA 2:30 p.m.

Después de un minucioso proceso de revisión del cumplimiento de las especificaciones técnicas y criterios de calificación posterior, el IDEAM a través del Comité Técnico Evaluador, preparó el informe de evaluación respectivo, el cual fue sometido a No Objeción del BIRF- Banco Mundial el 18 de septiembre de 2014.

Luego de resolver inquietudes formuladas por el Banco en relación con aspectos de adquisiciones y técnicos, el BIRF- Banco Mundial emitió la No Objeción al informe de evaluación de las ofertas presentadas el 6 de noviembre de 2014.

En este punto el IDEAM evidenció que no se podía contar con la entrega efectiva de los bienes al IDEAM dentro de la vigencia fiscal 2014 por lo que se solicitó la anulación del proceso. No obstante lo anterior, para el IDEAM es una obligación legal la de estar adquiriendo equipos e instrumentos hidrometeorológicos de última tecnología a fin de poder monitorear de forma autónoma, confiable,

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eficiente y continua la información hidrometeorológica. Por ello, el IDEAM siempre está en la consecución de recursos.

Como conclusión se puede afirmar que el IDEAM junto con sus funcionarios, contratistas técnicos, con el Grupo de Consultores contratados y con el apoyo del Grupo de la Banca Multilateral del Ministerio de Ambiente y Desarrollo Sostenible trabajaron en coordinación en la elaboración de Documentos Técnicos, Términos de Referencia, según el caso, los cuales fueron enviados dentro del término para No Objeción del BIRF-Banco Mundial. No obstante lo anterior, el IDEAM considera que el factor que más insidió en el resultado de la ejecución del IDS- crédito BIRF-8133-CO fueron los cambios en la Dirección del Proyecto por parte del BIRF-Banco Mundial. Esos cambios demoraron la obtención de las No Objeciones a los Términos de Referencia o Términos Técnicos. Además, que la ejecución de la contratación realizada debía estar acorde por las políticas presupuestales colombianas referidas a la vigencia fiscal, que expresa que todo gasto comprometido dentro de una vigencia fiscal debe ser cumplido dentro de la misma.

Por todo lo expuesto, el IDEAM no está de acuerdo con la calificación insatisfactoria que el BIRF –Banco Mundial otorgó al proyecto adicional IDS-crédito BIRF 8133-CO, toda vez que los objetivos se obtuvieron en un cien por ciento (100%). Adicionalmente, el BIRF- Banco Mundial debe tener en cuenta que los objetivos planteados son funciones legales que debe cumplir el IDEAM, por lo tanto, ello no acaba con el cierre del crédito. El IDEAM sigue trabajando con alianzas estratégicas con otras entidades estatales del sector para el cumplimiento de los objetivos legales.

Por último, en la ejecución del proyecto IDS intervinieron dificultades administrativas no atribuibles exclusivamente al IDEAM, sino también al BIRF-Banco Mundial como se expresó en el presente documento.

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Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders

Not applicable

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Annex 9. List of Supporting Documents

1. Casas, W. 2016. Informe Final Consolidado de Evaluación. Financiamiento del Programa de Inversión para el Desarrollo Sostenible y su Financiamiento Adicional. Subcomponente 2.3 – Disposición Final de Residuos Sólidos. Consultant report prepared for the World Bank. January 2016.

2. Florez, Maria del Rocio. 2016. Technical Report. Improved Hygiene Practices Promotion Subcomponent of Colombia Sustainable Development Investment Project. Consultant report prepared for the World Bank. January 2016.

3. Florez, Maria del Rocio. 2016. HWP Background Report. Improved Hygiene Practices

Promotion Subcomponent of Colombia Sustainable Development Investment Project. Consultant report prepared for the World Bank. January 2016.

4. Larsen, B. and John Skjelvik. 2014. An Economic Assessment of Health Effects and

their Costs. Consultant report prepared for the World Bank. December 2014.

5. Loan Agreement (Additional Financing for the Sustainable Development Investment Project) between Republic of Colombia and International Bank for Reconstruction and Development. June 20, 2012. Loan Number 8133-CO.

6. Loan Agreement (Sustainable Development Investment Project) between Republic of

Colombia and International Bank for Reconstruction and Development. November 23, 2005. Loan Number 7335-CO.

7. Project Implementation Status and Results Reports available at:

http://www.worldbank.org/projects/P082520/co-sustainable-development-inv-project?lang=en&tab=documents&subTab=projectDocuments

8. Project Progress Reports prepared by the GoC. 9. Sanchez-Triana, E., K. Ahmed, and Y. Awe (eds.) 2007. Environmental Priorities and

Poverty Reduction: A Country Environmental Analysis for Colombia. Directions in development Series. Washington, DC: World Bank.

10. Weaver, C. 2016. Background Paper for Preparation of Implementation Completion and Results Report for Colombia Sustainable Development Investment Project. Evaluation of Air Quality Subcomponents. Consultant report prepared for the World Bank. January 2016.

11. Weaver, C. 2016. Final Technical Evaluation of the Air Quality Sub-Components of

Colombia Sustainable Development Investment Project. Consultant report prepared for the World Bank. January 2016.

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12. World Bank. 2005. Project Appraisal Document on a proposed loan in the amount of US$7.0 million to the Republic of Colombia for a Sustainable Development Investment Project. September 28, 2005. Report No: 33635-CO.

13. World Bank. 2010. Colombia: First, Second and Third Programmatic Development

Policy Loan for Sustainable Development. Implementation Completion and Results Report. June 29, 2010. Report No: ICR 1402.

14. World Bank. 2012. Project paper on a loan in the amount of US$10 million to the

Republic of Colombia for a Sustainable Development Investment Project. February 8, 2012. Report No: 66447-CO.

15. World Bank. 2014. Environmental Health Costs in Colombia: The Changes from 2002

to 2010. The World Bank, Latin America and Caribbean Region. Washington, DC: World Bank.

16. World Bank Project Aide-Memoires and Back-To-Office-Reports.

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