The previous Peru Country Partnership Strategy (CPS) (2006-2011) identified an indicative lending program within a base-lending envelope of up to US$ 3.5 billion. In addition, it provided analytical and advisory assistance as well as non-lending technical assistance to respond to government priorities in a timely manner.
Maintaining macroeconomic stability and reducing vulnerabilities
The Fiscal Management & Competitiveness (FM&C) operation and the associated analytical assistance (Policy Notes, Public Financial Management Performance Assessment and other studies) directly contributed to a solid fiscal management.
The Catastrophic Risk Deferred Drawdown Option (DDO) has also helped Peru reduce fiscal vulnerabilities in light of the frequent natural disasters affecting the country.
Accelerating growth and broadening its base
The World Bank will give an additional US$20 million in financial support to the Rural Productive Partnerships of the Sierra (ALIADOS), which will benefit some 31,600 families in the poorest areas of Peru. These resources will enable the extension of the partial subsidy for the preparation and implementation of nearly 700 new rural business plans as well as 375 projects for land development initiatives in 395 districts in central Peru. Infrastructure investment increased, both through public funds and the promotion of private investment. Projects are being developed in areas such as decentralized transport in the regions, decentralized transport in urban areas, urban transport in Lima, irrigation, water and sanitation and rural electrification, among others.
Transport and rural electrification projects have helped improve the lives of the poorest citizens. Rural roads have reduced travel times by 30%, whereas access to and improvements in electric power services have benefited over 105,000 households and small enterprises, or 450,000 individuals, including some 35,000 indigenous people.
In terms of improving competitiveness and productivity, the Metropolitan Project drastically reduced travel times in the City of Lima by providing a new express bus system and eliminating 790 older, highly polluting buses.
Additionally, initiatives such as the Peru-Strengthening Sustainable Management of the Guano Islands, Isles and Capes National Reserve System Project, which has received grants from the Global Environmental Facility (GEF), supports agricultural innovation, biodiversity and the sustainable management of ecosystems that are a valuable environmental heritage and source of income for thousands of families living along the Peruvian coast.
Meeting basic needs
In 2011, the World Bank supported the creation of the new Ministry for Development and Social Inclusion, collaborating on the reform and development of new social-policy approaches and systems to improve targeting, results-based management and coordination.
Additionally, the Bank contributed to crosscutting development areas such as the strategy to fight corruption and to promote gender-related activities, where women have been active participants in road-maintenance enterprises, productive associations and in the administration of water boards.
Support to the sub-regions
During the last quarter of 2013, the first sub-regional loan, to Cusco, was approved, for US$ 35 million. With this loan, more than a million people will benefit from improved tourism services, adequate solid waste management and natural disaster protection and prevention measures in Cusco, Calca and Urubamba. These activities form part of a larger program of the Cusco Regional Government. Additionally, more than 400,000 Cusco inhabitants and tourists will benefit from the US$ 120 million project to improve transportation (METRA), which was approved in 2014.
Studies and Evaluations
The World Bank conducted several studies, analyses and systematizations, including the Diagnostic review for consumer protection and financial literacy. Additionally, with a view to addressing a key dimension of gender equality, the Bank implemented the study, Promoting the capacity to decide and act: a path toward more effective policies. Other efforts in this area included the Peru-technical assistance program in education; Challenging the passage of time: experiences in managing water and sanitation services in four Peruvian towns; and The future of irrigation in Peru: challenges and recommendations.
Last Updated: Apr 15, 2015