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1. Number of Feasibility Studies 0 5 10 15 20 25 30 35 40 45 50 Economic Rate of Return 96 The CBA evaluations were done adopting the producer s surplus approach by comparing the project costs and economic benefits derived from increase in agricultural and livestock net production value as a result of productivity increase linked to the road improvement The feasibility studies considered different assumptions regarding the 1 increase in the number of livestock and overall agricultural area for key agricultural products after the project 11 decrease in the costs of production for either agricultural or livestock related products after the project 111 and the growth rate of the agricultural area and number of livestock with and without the project A detailed review of 12 feasibility studies shows that in year 3 on average the total agricultural and livestock production benefits profits net of production costs are 1596 higher with the project compared with the without project scenario which is broadly in line with the ex ante economic evaluation assumptions The table below presents a sample of the agricultural and livestock characteristics on the area of influence of the project roads Table 4 Sample agricultural and livestock characteristics Production Farm Agricultural Yield Cost Price Product ton ha US ha US ton Wheat 1 30 500 300 Amylace
2. 70 agricultural sectors and for the most educated producers Escobal and Ponce 2002 Similar results were found in Ghana Hine and Riverson 1982 In Nepal wages were found slightly higher when travel times to markets are decreased Jacoby 2000 Effects on income The positive effects on productive activities should lead to greater income although little empirical evidence can be found in the literature In cases when migration is promoted remittances should add to the non agricultural income for poor households for which a member of the family traveled to an area with greater employment opportunities The lack of observable evidence is generally interpreted by the fact that in order to be significant rural roads program need to be complemented by other initiatives However in Bangladesh an increase of 33 percent on total income was reported with a greater effect on agricultural income for the less poor producers and a greater effect on non agriculture income for the poorest producers Ahmed and Hossain 1990 Although the effect of rural roads to reduce inequalities is expected to be positive due to the higher poverty rates in rural areas it is possible that benefits are less significant on the poorest segments on the population Effects of expenditures poverty and living standards In order for households to increase expenditures that could improve their living conditions they must perceive additional income as permanent Otherw
3. Project Concept Note Second Rural Roads Project Project Appraisal Document The World Bank May 25 2001 Regional Transport Decentralization Project Project Appraisal Document The World Bank June 15 2005 Decentralized Rural Transport Project Project Appraisal Document The World Bank November 15 2006 Evaluaci n Econ mica Social Ambiental e Institucional del Programa de Caminos Rurales Instituto Cuanto August 2000 Elaboraci n de la l nea de base del Provias Rural Instituto Cuanto August 2004 Premio a las Buenas Practicas Provias Rural March 2005 Situaci n de los Servicios de Transporte en Zonas Rurales del Per Jos Luna 2004 An lisis de los Servicios de Infraestructura Rural y las Condiciones de Vida en las Zonas Rurales de Per Javier Escobal and M ximo Torero 2004 Peru Rural Infrastructure in Peru Effectively Underpinning Local Development and Fostering Complementarities The World Bank January 26 2006 Roads towards Local Development Elizabeth Dasso in Thinking Out Loud VI Innovative Case Studies on Participatory Instruments The World Bank Autumn 2005 Rural Infrastructure Chap 12 Nicolas Peltier Thiberge in An Opportunity for a Different Peru Prosperous Equitable and Governable The World Bank 2007 122 gr PACIFIC PERU SITUATION AND LOCATION OF PRIs AS OF NOVEMBER 2006 IN MOST ADVANCED X PRis WITH FULL CAPACITY ESTABLI
4. Problem Project at uality of time Yes N e me QS A pole DO rating befor ee ee D Sector and Theme Codes Original Actual Sector Code as of total Bank financing Central government administration Micro and SME finance 2 Ports waterways and shipping Roads and highways 90 90 Sub national government administration 3 4 Theme Code Primary Secondary Access to urban services and housing Primary Primary Municipal governance and institution building Primary Primary Participation and civic engagement Primary Primary Rural non farm income generation Primary Primary Rural services and infrastructure Primary Primary E Bank Staff Positions At ICR At Approval Vice President Pamela Cox David de Ferranti Country Director Marcelo Giugale Isabel M Guerrero Sector Manager Jose Luis Irigoyen Danny M Leipziger Project Team Leader Nicolas Peltier Thiberge ICR Team Leader Nicolas Peltier Thiberge ICR Primary Author Julie Babinard 11 Jose Luis Irigoyen F Results Framework Analysis Project Development Objectives from Project Appraisal Document Improve the access of rural poor to basic social services market integrating infrastructure and income generating activities with gender equity to help alleviate rural poverty and raise the living standards of rural communities Specific objectives are a to integrate poorly accessible zones to social services and regional economic centers b generate e
5. Regarding the second set out of the initial 138 43 km 5 76 km have been completed 55 91 km are in an advanced stage and 76 75 km are still pending From the last figure three segments representing 45 28 km are not being considered until the required bridges are built with support from the regional governments or less costly alternatives are identified The construction of these bridges is beyond the financial capacity of the PPS The preliminary works for the 2 wharfs have started and these will be built by the Regional Governments All the pending works are expected to be implemented during 2007 and finalized by the end of 2008 The causes behind these delays are related to a number of challenges faced by the PPS before and during construction in great deal due to the climate conditions of the Amazon basin Before construction the PPS had to face the fact that there were few interested firms in the bidding process This was due to among other reasons the lack of experience in rehabilitating rural roads in the Peruvian Amazon the risk involved in moving heavy equipment by river for works with small financial scope and concern due too frequent and heavy rainfall During construction the following limitations were faced it was impossible to move heavy equipment on the ground during the rainy season the firms did not have their own equipment and had to depend from renting from others The material needed for construction had to be brought from fu
6. stos representan son los verdaderos due os de los caminos rurales Esta estrategia tiene como marco legal la propia Constituci n Pol tica del Per Ley Org nica de Municipalidades Ley General de Transporte y Tr nsito Terrestre as como la normatividad en materia de descentralizaci n en donde se establecen las competencias de las Municipales Provinciales y Distritales en vialidad rural en gesti n construcci n rehabilitaci n mantenimiento o mejoramiento de la infraestructura vial bajo su jurisdicci n Con este prop sito el programa dise una estrategia operativa de descentralizaci n de la gesti n vial consistente en i Desarrollar una institucionalidad especializada en el seno de las municipalidades provinciales que se encargue de la gesti n vial de los caminos rurales promoviendo la creaci n de Institutos Viales Provinciales IVP ii Planificar el desarrollo de la infraestructura vial rural a nivel provincial a trav s de la formulaci n de Planes Viales Provinciales Participativos PVPP los mismos que constituyen instrumentos de gesti n planificaci n y orientaci n de inversiones en materia de vialidad en la provincia iii Desarrollar mecanismos de cofinanciamiento que garanticen la sostenibilidad de la inversi n realizada en infraestructura vial rural y por tanto del mantenimiento rutinario iv Gradualidad de la descentralizaci n de la gesti n vial de los caminos rurales debido a la heterogeneidad en l
7. vi H AE e o Le vi I Disbursement Grapni 2tusukesscpesusvpnaw was youn vil 1 Project Context Development Objectives and Design eee 1 2 Key Factors Affecting Implementation and Outcomes eee 12 3c Assessment or OULCOMIES nes eo dl 22 4 Assessment of Risk to Development Outcome seen 33 5 Assessment of Bank and Borrower Performance eee 35 Ox Lessons Learned AS etate a bites 39 7 Comments on Issues Raised by Borrower Implementing Agencies Partners 43 Annex Project Costs and e den dos ade uae 45 Annex 2 Outputs by COMPONER Lo totg tap IER ras 47 Annex 3 Economic and Financial Analysis eeeeseeeseeeeeeeeeeeeneeeenne 60 Annex 4 Bank Lending and Implementation Support Supervision Processes 67 Annex 5 Beneficiary Survey Results alee Waa aoa 69 Annex 6 Stakeholder Workshop Report and Results eene 84 Annex 7 Summary of Borrower s ICR eese eene eene entente 94 Annex 8 Comments of Cofinancier eee nnna 120 Annex 9 List of Supporting tnn 122 MAPS IBRD 35059 IBRD 35515 IBRD 35516 patatas 123 Basic Information Count P Project N SECOND RURAL ountry eru roject Name y ROADS PROJECT Project ID P04
8. 44 from agriculture and forestry activities 10 6 413 0 6 6 113 0 from cattle 81 4 5 6 5 8 6 43 6 from commerce and services 26 1 o 1 7 1 0 4 6 others 5 5 16 1 26 1 10 1 Composition of total income from agriculture and forestry activities 6 4 0 3 1 4 4 0 3 from cattle 2 6 0 2 1 9 5 4 from commerce and services 2 7 1 6 0 1 6 7 others 0 7 1 4 2 5 1 Poverty rates percentage points Extreme poverty 8 1 4 1 4 2 4 0 Non extreme poverty 1 8 1 5 3 4 4 2 6 1 2 2 0 5 8 7 significant at 20 percent significant at 10 percent significant at 5 percent significant at 1 percent Households perception Rural households and local stakeholders mostly local leaders were also surveyed to assess their perception of the program and how this perception evolved over time Rehabilitation works for rural roads led to a strong and statistically significant increase of stakeholders and households satisfactory perception Remaining dissatisfaction is mostly due to stakeholders expectations that more roads or additional infrastructure need to be rehabilitated Moreover this positive perception is stable over time for roads rehabilitated 3 or more years before suggesting that road quality is sustainable over time most likely as a consequence of the maintenance arrangements The situation is different for NMT tracks where local stakeholders percepti
9. CEA presented on a sample of 423 feasibility studies prepared during the project implementation and ii performed representative ex post CBA and CEA evaluations considering actual road works costs and results of the latest impact evaluation study prepared during the implementation of the project Ex ante Economic Evaluation The economic evaluation framework defined for the project at appraisal considers the stage of development of the sub project area of influence Sub project in a first stage of development in areas with a high percentage of poverty serving a social function and typically with very low traffic less than 15 AADT or only non motorized traffic tracks are analyzed on the basis of social considerations cost effectiveness approach identifying the total project costs the total beneficiary population in the direct and indirect are of influence of the sub project and the cost per beneficiary indicator The maximum project cost was set to US 250 000 and the maximum cost per beneficiary indicator was set to US 100 per beneficiary These thresholds were based on the experience of the sub projects undertaken in the first phase of the program The direct are of influence includes communities around 500 meters to both sides of the road right of way without considering the most populous city at either end of the road Indirect area of influence includes communities around 10 km band along the road When these thresholds were not
10. FY04 FY05 FY06 FY07 Supervision ICR FY99 FY00 FYO1 FY02 FY03 FY04 FY05 FY06 FY07 Staff Time and Cost Bank Budget Only No of staff weeks Total Total 1 68 17 25 42 16 10 17 26 33 09 USD Thousands including travel and consultant costs 40 57 133 39 98 06 1 50 0 00 0 00 0 00 0 00 0 00 273 52 0 00 0 00 0 00 76 99 42 27 83 09 78 65 88 12 19 34 388 46 Annex 5 Beneficiary Survey Results Three impact evaluations were performed in 2000 2004 and 2006 These evaluations were conducted by two experienced Peruvian think tanks Instituto Cuanto for the first two evaluations and GRADE for the last one Literature review of the impacts of rural roads programs There is growing evidence in the literature of how road improvement can generate opportunities to improve economic growth and reduce poverty Khandker 2006 Rehabilitation and maintenance of existing roads has a higher impact on the living conditions of the rural poor than the construction of new infrastructure The decrease of transport costs improves labor productivity and generates employment opportunities in the agriculture and non agriculture sectors which in turns leads to increased income and higher expenditures in social services A summary of the literature with regards to the various possible effects is indicated below Effects of transport conditions Road improvement programs have been found to have a direct i
11. The 2006 evaluation distinguished between roads that were improved between 1998 and 2003 generation 2000 and roads improved between 2004 and 2006 generation 2004 This distinction allowed differentiating between short term impacts noticeable between 0 2 years after road improvement and mid long term impacts noticeable between 2 8 years after road improvement For the purpose of the 2006 evaluation a panel of 3 763 households was constituted in 13 departamentos This panel includes 2 061 households surveyed in 2000 minus 688 control road was selected based on the following additional considerations 1 road length ii size and characteristics of neighboring cities villages and communities iii climatic and agriculture environment iv main function of road v socio economic characteristics of population vi public investment programs 1 transport conditions 2 access to public services 3 access to private services 4 productive activities 5 income 6 expenditures 7 employment 8 migration 9 gender 10 institutions 11 environment 12 participation 13 safety 14 poverty living standards and 15 households perceptions 73 which were lost plus 2 390 households interviewed in 2004 Ultimately 85 percent of these households could be contacted and surveyed 1 218 for 2000 and 1 965 for 2004 18 Table 9 surveyed households distribution per region Departamento gen
12. and where researchers and think tanks could contribute through their knowledge and findings of their own research activities to a better understanding of rural poverty links and the formulation of more effective strategies for a sustainable reduction of rural poverty 2 Improving Planning and Management of Rural Roads The project aimed to provide technical assistance to provincial and district municipalities to strengthen their capacity to 1 manage the core road network under their jurisdiction through efficient participatory planning and accurate road inventories ii carry out and increasingly finance road maintenance operations routine and periodic and ii help the communities in their jurisdiction to organize and maintain the network of community tracks and paths that serve them through faenas comunales and other forms of collective action The institutional program would expose all participating municipalities to the organizational shortcuts the simple planning and budgeting systems and the extensive use of labor based methods and contract arrangements promoted under the project The program would set up a demand driven flexible assistance agenda for provincial municipalities to becoming eligible for direct execution It would also finance consultant services participatory planning and evaluation processes and provide training on the job only in those municipalities who request the assistance and therefore their majors are committed
13. best practice approaches such as the NMT component which were highly innovative and positive in their outcomes Bank assistance during the second phase sought to continue bringing global experience to further and also increase the sustainability of rural road sector reforms deepening the consideration of social issues in alleviating rural poverty and enhancing coordination with other rural development programs Also the Bank could bring considerable knowledge and experience as a result of its extensive worldwide involvement in the transport sector and its analytical rigor in relating transport interventions with poverty reduction Finally through its wide participation in most of Peru s poverty alleviation programs in rural areas and its extensive involvement with civil society representatives the Bank had accumulated a substantial amount of knowledge on the large number of programs presently underway and the issues that needed to be addressed to improve their effectiveness 1 2 Original Project Development Objectives PDO and Key Indicators Overall Goal The overall purpose of the proposed project was to increase access to basic social services and economic and income generating activities with gender equity to help alleviate rural poverty and raise living standards of rural communities in Peru The project was the second phase of the Rural Roads Program launched in 1995 to provide a well integrated and reliable rural road system in the ru
14. n de contar con el mejor equipo de trabajo en favor de comunidades y familias pobres del mbito rural del Per 2003 entre 25 proyectos de Latino Am rica ONG Ciudadanos al D a CAD 2005 Premio a las Buenas Pr cticas Gubernamentales en la Categor a Promoci n del Desarrollo Econ mico a Nivel Nacional debido a los impactos de a trav s de la rehabilitaci n y de un sistema de mantenimiento sobre la base de microempresas sostenible tercerizado y generador de empleo en el medio rural participativo descentralizado complementario y eficiente Radio Programas del Per por la promoci n de proyectos productivos mediante la Ventana para el Desarrollo Local 119 Annex 8 Comments of Cofinancier Comments from IaDB Rodolfo Huici Task Manager La experiencia del BID en esta operaci n ha sido muy positiva particularmente en los siguientes mbitos Evaluaci n del proyecto El dise o del proyecto al igual que su primera etapa fue estructuralmente correcto a la vez que permit a suficiente flexibilidad al ejecutor para adaptarlo a las necesidades de los diversos actores Algunos temas que parec an inicialmente altamente inciertos como la cofinanciaci n municipal del mantenimiento terminaron convirti ndose en unos de sus aciertos m s significativos Otro tema igualmente relevante fue el piloto de descentralizaci n que super largamente las expectativas m s ambiciosas Desempefio del ejecutor PVD antes
15. pp gcn xg Number of Feasibility Studies o Cost per Beneficiary Indicator US person A sample of 299 non motorized tracks improvements feasibility studies were reviewed totaling 2 636 km 73 of the total program of 3 607 km on which CEA was performed For these tracks i the average improvement costs is US 2 500 per km ii the total improvement cost is US 6 6 million iii the average cost per beneficiary indicator is US 27 per person and iv the average total population served is 295 persons per km of which all are direct beneficiaries Figure 4 presents a histogram of the cost per beneficiary indicator for the non motorized tracks Figure 4 Cost per beneficiary for NMT tracks Tracks Projects B U co a oa 1 a Number of Feasibility Studies N o o o Ej El E E E Cost per Beneficiary Indicator US person 63 Ex post Economic Evaluation Cost Benefit Analysis The ex post economic evaluation was done considering actual road works unit costs and results of the latest impact evaluation study prepared during the implementation of the project First a producer s surplus model was developed designed to replicate the results of the ex ante economic evaluation and then the actual road work costs and the updated assumptions
16. roads rehabilitation suggesting that improved rural transport alone is not sufficient to tackle rural poverty in these less remote places Rural road improvements are still an important element of rural poverty alleviation strategies provided they are combined with other types of infrastructure in order to enhance impact This conclusion reinforces the relevance of initiatives such as the Local Development Window or the Rural Infrastructure Pilot scheduled in the follow on operation Decentralized Rural Transport Project Finally PDO achievement is reinforced by the greater project outputs 4 039 km of roads rehabilitated and maintained compared to an initial objective of 3 225 km as well as by the successful results of the other project components in ensuring technical sustainability road maintenance institutional sustainability provincial road institutes and complementarities with entrepreneurial initiatives local development window 3 3 Efficiency Several economic evaluations of the projects road improvement activities were performed before and after the implementation phase While the ex ante economic evaluation analyzed a sample of 36 sub projects completed under the first phase of the program using the producer s surplus approach the ex post economic evaluation i reviewed the CBA and the Cost Effectiveness Analysis CEA presented on a sample of 23 423 feasibility studies prepared during the project implementation and
17. ste desarrollado mediante procesos participativos vincula al poblador con el desarrollo rural integrando no s lo a los centros poblados de la regi n si no a nivel nacional de tal forma que tomen conciencia de que los caminos han sido construidos para beneficio de ellos y como tal deben conservarlos En lo social la participaci n del poblador en las microempresas de mantenimiento vial desde la convocatoria promoci n y selecci n hasta la operaci n del servicio permite internalizar el 39 BID Libro de Consulta sobre Participaci n Quispe Edgar Mantenimiento Vial de los caminos rurales en el Per basado en Microempresas 2003 112 sentido de apropiaci n del camino pertenencia transformado su condici n pasiva dependiente beneficiario en un agente activo de cambio operador del mantenimiento adem s como se se al los trabajadores de las microempresas se sienten identificados con las labores que realizan dado que m s all de su labor remunerada se ven favorecidos directamente por los beneficios tangibles que trae la mejora de la transitabilidad al ser miembros de la comunidad Dado que el mantenimiento rutinario de las v as rurales implica uso intensivo de mano de obra que no requiere de un alto grado de calificaci n el modelo permite contribuir a la generaci n de empleo Los socios y socias de las Microempresas muchas de ellas jefas de hogar son generalmente pobladores de bajos niveles de ingresos margi
18. the project would have softened local conflicts and then prompted a reduction in these processes by legitimizing local authorities and reducing conflicts On the other hand the revocatoria is a sign of participation that reveals interest in public matters and shows greater accountability of elected officials Through revocatoria rural stakeholders feel empowered and have an opportunity to voice up their dissatisfaction New local leaderships Management experience gained through project implementation was transferred to other areas of public management In the 6 department surveyed 82 cases showed that MEMV members gained public management positions In one case a PRI manager became president of the regional government Quechua sessions To engage indigenous peoples remote rural communities and women in representative participatory processes some mayors delivered sessions in both Spanish and Quechua Participatory budgets were sometimes disseminated in quechua and several local governments realized that training sessions and trainers needed to be able to talk in quechua to guarantee monolingual inhabitants participation Impact on rural institutions The project introduced a collaborative environment which provided incentives to mayors in order to seek for greater synergies In a number of cases networks of local governments were created For example in Angaraes province an association of 5 mayors started meeting on a regular ba
19. 4 In 2005 Provias received an award for best government practice in the category promotion of economic growth This award was granted by members of the Peruvian civil society who organized a competition aiming at rewarding good performing governmental initiatives Buenas Pr cticas gubernamentales Outcomes that were particularly highlighted in the case of Provias included 1 sustainability ii employment generation iii community participation iv complementarity with other rural development initiatives and v linkage with decentralization The project also received an IDB excellence award in 2002 The first Road Rehabilitation and Maintenance Project had received the World Bank President s Award for Excellence in 2001 Key factors positively affecting project implementation included a Consistency and continuity of Peruvian rural roads policies Project design built on the lessons and achievements of the Peru Road Rehabilitation of Maintenance Project The Second Rural Roads Project furthered or scaled up many of the The competition is organized every year by a Peruvian NGO Asociaci n Ciudadanos al D a In 2005 350 initiatives applied 77 were short listed and 20 were finally rewarded Awards were granted in 7 categories 1 services to citizens ii promotion of economic growth iii simplification of procedures iv transparency v citizens participation vi rule of law and vii organization an
20. 5 e 40 3 290 E 0 40 60 80 100 Extreme poverty rate in 2001 Key outputs by component are described below Component 1 Rehabilitation of Rural Roads and Connecting Primary and Secondary Roads At closing the program had rehabilitated 4 692 km of roads compared to an initial objective of 3 575 km This was made possible due to a lower than expected rehabilitation cost per km average cost of 14 050 US per km compared to an initial estimation of 17 300 US per km Rehabilitated roads include 4 039 km of rural roads and 653 km of connecting primary and secondary roads compared to an objective of respectively 3 225 km and 350 km Adding up the 4 692 km of rural roads rehabilitated under the Second Rural Roads Project to the 8 882 km of rural roads rehabilitated under the Rural Roads Rehabilitation 47 and Maintenance Project and to the 502 km of roads financed by other donors USAID Fondo Italo Peruano Fondo Contravalor Peru Francia The Netherlands Devida and Prodatu under the same model it is a total of 14 076 km of rural roads that have been rehabilitated by Provias Rural now Provias Descentralizado over slightly more than a decade This represents about 32 percent of the total Peruvian rural roads network In the twelve departments that have been targeted by the Second Rural Roads Project it is an average of 49 percent of the network that has been rehabilitated As initially envisaged rural
21. Fort and Menendez 2002 Based on interviews with beneficiaries Peruvian rural women seem to have particularly benefited from the program with greater access to markets less time lost to get food and fuel and greater participation in local politics In addition the effect of rural roads program on improved access to health and education services have been found to be greater in the case of women Women generally are the ones who accompany children to school and old people to health centers 71 Effects on institutions organizations Rural roads improvement facilitates access to public services but also help the development expansion of these services For example it can be expected that it will be easier to build a school in an area where transport conditions have been improved Similarly bringing access should facilitate the development of private activities banks providers of equipment etc Another direct effect is the development of road rehabilitation and maintenance enterprises Effects on environment One possible negative effect of rural roads programs is that they may favor a more intensive exploitation of natural resources Intensive agriculture has been found to increase soil degradation and erosion through the overuse of fertilizers and pesticides Devres Inc 1980 If productive activities are handled in an unsustainable manner improved rural transport conditions may also affect the natural equilibrium of targeted areas
22. PROVIAS Rural demostr ser una agencia ejecutora capaz abierta a sugerencias internas y externas manteniendo su capacidad de aprendizaje flexible e innovadora Es la gran responsable de los buenos resultados logrados y con su liderazgo institucional se consiguieron los objetivos mencionados as como la aprobaci n del Programa de Transporte Rural Descentralizado que le dar continuidad temporal y expansi n geogr fica la Programa de Caminos Rurales Hay un tema si embargo al que deber pon rsele mayor nfasis y es el de los aspectos t cnicos PVD contin a aplicando preceptos t cnicos dise os de ingenier a est ndares t cnicos gesti n del mantenimiento establecidos y mejorados en el programa inicial y este que acaba de finalizar Sin embargo con la descentralizaci n del Programa nuevos actores aparecen y para ellos el enfoque t cnico de actuaci n es primordial Este enfoque es la entrada del Programa a los IVP y gobiernos regionales y debe hacerse hincapi en la naturaleza t cnica de las intervenciones mejorar la evaluabilidad de los caminos duraci n de las obras calidad del mantenimiento oportunidad de poner el camino en un mantenimiento peri dico costos y dificultades involucradas metodolog as de intervenci n sistemas de gesti n etc y el aprendizaje que se obtiene de la diversidad de intervenciones Esto implica que PVD debe cambiar su rol de agencia de ejecuci n a una agencia de inteligencia algo que
23. access to social services For rural roads school enrollment was found to have increased significantly This effect is greater for girls accessing primary education possibly because of the more secure transport conditions while for boys the highest effect is found for secondary education possibly further away and therefore linked to the reliability of motorized transport For NMT tracks a significant effect was on the health conditions of young children age 0 5 most likely because of the facilitated access for mothers to health centers Improved transport also impacted the pattern of productive activities and employment in the rural economy Better rural roads led to an increase in farmed land area and in irrigated land value However the income produced per farmed area decreased possibly as a consequence of over production of locally consumed products Rural roads also helped populations access more formal job opportunities and facilitated access to credit On the other hand NMT tracks had an important effect on agricultural productivity This is principally due to the participation of unpaid family workers to income generating opportunities possibly as a consequence of additional time freed by eased transport This increased productivity possibly combined with improved access to markets led to additional income for poor rural households benefiting from improved NMT tracks 3l As discussed before the ultimate effect on poverty is mix
24. an active member of the National Commission of Rural Development and has led an initiative to strengthen coordination with agencies in charge of rural infrastructure This initiative was formalized through the signing of a Memorandum of Understanding MoU between these various agencies and will be furthered through a rural infrastructure pilot to be implemented within the follow on operation Decentralized Rural Transport Creation of Provias Descentralizado Provias Descentralizado was created in August 2006 by Supreme Decree No 029 2006 MTC from the merging of Provias Rural and Provias Departamental This institutional evolution is a positive step to strengthen the decentralization process by focusing the role of the national government on regulatory responsibilities and assistance to sub national governments The merger is also expected to facilitate the dissemination of best practices from rural to regional roads 56 6 2 Improving Planning and Management of Rural Roads This activity aimed at financing a technical assistance package to strengthen the capacity of local stakeholders to efficiently plan and manage their rural road assets In particular a methodology for participatory road planning was developed and improved Over the project s life time 71 Participatory Provincial Road Plans were carried out by individual consultants who worked in partnership with the provincial local coordination council These councils are headed b
25. be funded under the project utilizing a multi criteria index to rank the road sections and define priorities Consultants prepared project level feasibility studies for each identified sub project to quantify the rehabilitation needs of the project road and evaluate its economic or social justification Non motorized tracks and rural roads with traffic less than 15 AADT were subject to CEA and rural roads with more than 15 AADT were subject to CBA using the producer s surplus approach A sample of 124 rural roads feasibility studies were reviewed totaling 2 128 km 42 of the total program of 5 018 km of which 47 feasibility studies 984 km included CBA and 77 feasibility studies 1 144 km included CEA The overall average rehabilitation unit cost is US 15 280 per km and the overall average total population served is 497 persons per km Cost Benefit Analysis For the 47 roads subject to a CBA i the average rehabilitation costs is US 16 657 per km ii the total rehabilitation cost is US 13 78 million iii the total NPV is US 6 75 million at 14 discount rate iv the ERR is 23 6 and v the average total population 61 served is 337 persons per km of which 260 persons are direct beneficiaries communities around 500 meters to both sides of the road right of way Figure 2 presents a histogram of the ERR for the rural roads projects Figure 2 Economic rate of returns of rural roads projects Rural Roads Projects
26. been trained in shear post shear stocking and dyeing of the wool with natural dyes The Spinners Committee of Chicche now consists of 80 spinners 75 percent of which are women Impact on Participatory Processes Democracy and Rural Institutions At completion a study was launched to evaluate the impact of the project on rural institutions participatory processes and democracy Key results are summarized below Impact on Civil Engagement The learning process initiated by the project entailed not only road assets and resources management but it brought out a number of new concepts and endeavors leading to tackle social exclusion to promote social and political engagement of the rural peoples and to enhance fully represented participatory assemblies Specifically the project contributed to the decentralization process and to the promotion of social equality opportunities in rural Peru through i supporting the creation of rural institutions e g Rural Roads Committees MEMV productive cooperatives ii promoting participatory decisions prioritizing rural transport investments iv facilitating strategic local planning and space management by the rural habitants Rural Roads Committees participatory sessions v stimulating local leaderships including among women vi fostering productive initiatives and attracting public and private investment through the LDW v affecting collaboration between communities and their local MEMV mem
27. caracterizaron por estar sumidos en el c rculo vicioso de construcci n abandono destrucci n reconstrucci n Las inversiones en infraestructura vial rural desarrolladas por PROVIAS DESCENTRALIZADO antes PROV AS RURAL modificaron sustancialmente este panorama hacia un c rculo virtuoso de construcci n rehabilitaci n mantenimiento que se representa en el siguiente gr fico 98 Sistema de Mantenimiento implementado por el PCR significa Rehabilitaci n Abandono dli construcci n destrucci n S destrucci zz Construcci n Mantenimiento reconstrucci n Rutinario y peri dico Circulo Vicioso El e Circulo Virtuoso Para el sostenimiento de las inversiones y la transitabilidad de los caminos rurales el mantenimiento es fundamental ya que bajo las presiones combinadas del tr nsito y del clima en especial en el caso de los caminos peruanos expuestos a los enormes desaf os derivados de nuestra condici n de pa s andino con elevadas pendientes y un clima agresivo los caminos volver an r pidamente a su estado inicial y el esfuerzo e inversi n que se les ha destinado se perder a as como el enorme capital social generado en el desarrollo de la infraestructura Al garantizar la transitabilidad de la v a rural rehabilitada mediante el mantenimiento rutinario se cuida a la vez la inversi n realizada y el patrimonio vial del pa s es decir se trata de tener un sistema de caminos rurales bien
28. community organizations and or micro enterprises which are engaged in local development initiatives income earning undertakings identified through the Local Development Window LDW with participation of women above 30 0 300 167 09 30 2001 11 30 2006 11 30 2006 The figure presented corresponds to a more restrictive definition of initiatives identified through the LDW since it corresponds to initiatives that reached feasibility stage Otherwise it jumps to 850 Achievement 5596 of provincial municipalities co financing with Provias the maintenance of the rural road network rehabilitated in their jurisdictions through the arrangements set up under the project 0 100 93 09 30 2001 11 30 2006 11 30 2006 This target had to be reached for each Peruvian fiscal year and was measured by the proportion of municipalities that signed a financing agreement with Provias for road maintenance In 2006 the target has been partially met iv Indicator 9 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 10 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Achievement 9396 Number of provincial municipalities graduated under the program and assuming full responsibility for execution of project activities 0 12 99 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded This is one of the most significant project achievement
29. cuentan con recursos econ micos de diferente orden que pueden constituirse mediante el concurso de la inversi n privada o p blica en actividades productivas rentables que beneficien directa e indirectamente a la poblaci n de estos mbitos En este enfoque el principal producto de la intervenci n de VDL en un mbito rural pobre es formalizar y poner sobre relieve las potencialidades productivas y organizativas de las poblaciones para desarrollar actividades econ micas orientadas por el mercado y el desarrollo de capacidades locales para gerenciar recursos En el trayecto a ste prop sito se generan los planes de desarrollo local concertado que sirven de marco orientador e integrador de las iniciativas econ micas y sociales identificadas por la poblaci n organizada Los planes de desarrollo se constituyen en instrumentos de gesti n de los gobiernos locales orientando el uso eficiente y ordenado de los escasos recursos del sector p blico La propuesta de Ventana para el Desarrollo Local se complementa con el acompafiamiento a las autoridades de los gobiernos locales y organizaciones de productores de la poblaci n en la canalizaci n de sus perfiles y proyectos para la b squeda de financiamiento y en la capacitaci n y asistencia t cnica para el desarrollo de capacidades de gesti n empresarial y comercializaci n y la formalizaci n de las organizaciones de productores en un modelo empresarial que satisfaga las exigencias de cada actividad
30. del ciclo del proyecto Por ejemplo los gobiernos locales y la poblaci n beneficiaria participan en 1 identificar y priorizar sub proyectos ii promover la participaci n en el mantenimiento vial rutinario iii fomentar y asegurar la contrapartida local en las obras de mejoramiento de caminos de herradura iv cofinanciar los costos del mantenimiento vial rutinario v implementar los mecanismos y procedimientos para la transferencia y descentralizaci n de la gesti n vial rural vi monitorear el desempef o de las microempresas de mantenimiento vial con participaci n de profesionales j nior monitores mediante convenios de pr cticas pre profesionales con universidades locales vii promover sinergias para el desarrollo local El enfoque participativo en el mantenimiento rutinario tiene por finalidad involucrar activamente a los protagonistas en la soluci n de sus problemas Hablar de participaci n en el mantenimiento vial rural no es s lo hablar de la intervenci n de los pobladores en el proceso de promoci n y conformaci n mediante Microempresas es tambi n referirnos a la participaci n real y efectiva del Gobierno Local como responsable de la gesti n vial rural en el mbito provincial As la intervenci n del Programa se sustenta en la actuaci n convergente y sin rgica de un conjunto de actores sociales cuya participaci n permite lograr los objetivos institucionales dentro de las normas acordadas con los Bancos cofinan
31. el PTRD plantea de manera creciente pero que debe profundizar en los aspectos de ingenier a Desempefio del Banco Mundial El trabajo conjunto de los bancos continu el buen desempe o logrado durante la primera fase del Programa de Caminos Rurales Para su mejor comprensi n conviene dividir el trabajo en dos mbitos Cuando hablamos de los aspectos t cnicos los equipos conjuntos permitieron dar una profundidad al Programa que posiblemente de actuar de manera independiente no se hubiera logrado esta presencia conjunta es algo que las propias autoridades apreciaron El segundo mbito es el de los aspectos fiduciarios en particular adquisiciones Aqu las diferentes culturas institucionales aparecen y si bien ambas instituciones hab an resignado ciertos 120 aspectos de sus procedimientos con vistas a permitir un mejor desempefio de en la ejecuci n del Programa estas culturas diferenciadas volv an a aparecer en oportunidad de las revisiones peri dicas sin tener en cuenta si las normas eran aplicables a las particulares condiciones de contrataci n en mbitos rurales aislados Este tema debe ser analizado con flexibilidad para evitar poner al ejecutor en posici n de incumplimiento con una u otra instituci n y m s importante a n adoptando procedimientos que no permiten dar adecuada respuesta a las necesidades de los gobiernos y comunidades locales 121 10 11 12 Annex 9 List of Supporting Documents
32. en cartera y por ejecutar extendiendo la ejecuci n del programa e incrementando el n mero final de kil metros rehabilitados Asimismo tambi n se presentaron las dificultades m s resaltantes como son los adicionales de los estudios debido al aumento de kil metros la ejecuci n ineficiente de los consultores y la demora en los plazos establecidos Rehabilitaci n y Supervisi n de Caminos La rehabilitaci n de 5 184 Km de caminos vecinales mejoramiento de 3 612 Km de caminos de herradura mantenimiento rutinario de 15 778 Km de v as vecinales rehabilitadas en ambas etapas el mantenimiento peri dico de 8 900 Km de caminos vecinales entre otros han permitido mejorar las condiciones de transitabilidad en 126 provincias as como el nivel de vida a una poblaci n directamente beneficiaria aproximada de cuatro millones de habitantes principalmente de las reas rurales del pa s Se ha logrado la rehabilitaci n de 4714 Km en la segunda etapa lo cual significa un 43 adicional a lo programado inicialmente En cuanto al costo por Km Rehabilitado se obtiene un promedio final de 24 430 d lares lo cual ayuda a optimizar la programaci n para una tercera etapa con costos reales As como se tuvieron logros se presentan dificultades Entre las principales se encuentran el atraso de las obras debido a la terminaci n de los estudios y la declaratoria de desierto en los procesos lo cual genera la ejecuci n en periodos de lluvia trayendo
33. encontraba en una cr tica situaci n debido a factores propios de construcci n y climatol gicos as como a la falta de mantenimiento vial especialmente despu s de quince a os de violencia sociopol tica que asol al Per deteriorada entre un 80 a 100 96 caracterizada por una infraestructura deficiente inexistente o inadecuada debilidad institucional estructural en el mbito local e inexistencia de recursos financieros para el desarrollo del transporte rural En este contexto en 1995 se crea el Programa Caminos Rurales ejecutado por el PROV AS DESCENTRALIZADO antes PROV AS RURAL del Ministerio de Transportes y Comunicaciones desarrollando sus actividades en doce de los departamentos m s pobres del pa s Ancash Apur mac Ayacucho Cajamarca Cusco Huancavelica Hu nuco Jun n Madre de Dios Pasco Puno y San Mart n Durante la primera etapa 1995 2000 el Programa estuvo orientado a recuperar y mejorar las condiciones de transitabilidad de la red vial rural a trav s de acciones de rehabilitaci n y mantenimiento de caminos vecinales y departamentales pavimentaci n de calles en centros poblados y mejoramiento de caminos de herradura con el fin de incrementar la accesibilidad e integraci n de los pobladores rurales m s alejados a servicios sociales b sicos y a mercados En esta primera etapa se intervino en 96 provincias y 380 distritos en estos departamentos en situaci n de extrema pobreza logrando important
34. ex post economic evaluation was done considering actual road works unit costs and results of the latest impact evaluation study prepared during the implementation of the project First a producer s surplus model was developed to replicate the results of the ex ante economic evaluation and then the actual road work costs and the updated assumptions of the project benefits were entered into the model to produce the ex post evaluation results The producer s surplus model was developed taking into account information collected from the feasibility studies related to representative agricultural and livestock characteristics in the area of influence of the project roads Estimated contract and actual costs In order to determine the actual rehabilitation costs of rural roads unit and to compare them with the feasibility estimates and the contract costs different samples were reviewed 1 35 rural roads projects subject to CBA and ii 58 feasibility studies subject to CEA For the first sample contract costs are 23 lower than estimated costs and actual costs are about the same as contract costs while for the second one contract costs are 36 higher than estimated costs and actual costs are about the same as contract costs Regarding NMTs 277 projects were reviewed showing that contract costs are 596 higher than estimated costs and actual costs are 3896 lower than contract costs Similarly the review of 231 periodic maintenance contracts shows tha
35. financial set up to carry out the pilot and on the provincial road plan with the core investments proposed for funding The Assembly of Mayors of the province issued the ordinance establishing the Road Institute for the Province of Arequipa RIPA a decentralized public agency with the specific mandate to act on behalf of all the participating municipalities with autonomy to contract out works and services which may extend beyond the boundaries of a specific district and administer the resources channeled from various sources i e central government through Provias participant local governments and with its own budget separate from those of other provincial organizations As part of the proposed Pilot the project would finance pre investment studies and works for rehabilitation of about 200 km of priority roads and co finance on a declining basis their subsequent routine maintenance costs for up to three years Carried out under close monitoring by Provias these activities would serve as a controlled test of a model for decentralized road management with the expectation to expand to other provinces the model and implementation arrangements tested under the pilot once they prove to be adequate and once other provinces achieve the basic institutional and financial capacity to implement them The pilot would also help Provias develop skills and tools in areas such as supervising the execution of provincial agreements for decentralized manageme
36. g nero en algunas actividades del PROVIAS DESCENTRALIZADO antes PROV AS RURAL surge a ra z de la comprobaci n de la participaci n activa de la mujer en las labores de mantenimiento vial y en las iniciativas de proyectos productivos durante la primera etapa del Programa 1995 2000 Se podr a decir que la mujer comenz a hacerse visible dentro de un espacio tradicionalmente asignado a los varones en el rol productivo y en las actividades ligadas al transporte y la vialidad El Estudio sobre Efectos del mejoramiento de los caminos rurales en las relaciones de g nero 1999 demostr que los beneficios del proyecto son diferenciados para los hombres para las mujeres debido a diversos factores relacionados con la econom a dom stica la carga de trabajo las responsabilidades asignadas y tambi n con los valores y normas sociales y culturales En la segunda etapa 2001 2006 se incorpor la perspectiva de g nero en algunas actividades y componentes del PROV AS DESCENTRALIZADO a fin de promover una mayor equidad en las oportunidades de empleo e ingresos rurales Con este prop sito se dise e implement el Plan de Acci n de Desarrollo de Acciones de G nero 2002 que comprendi un conjunto de acciones afirmativas orientadas a asegurar una mayor presencia de mujeres especialmente en el mantenimiento vial rutinario y en el mejoramiento de caminos de herradura Se propuso una meta inicial de 10 y 20 en la participac
37. government facilitated the preparation and design of the second phase of the program and was also critical in confirming the validity and strategies underlying its design The first phase surpassed the investment targets agreed upon appraisal and fulfilled critical institutional strengthening factors such as micro enterprise development Provias Rural now Provias Descentralizado the specialized unit in charge of implementing the project played a positive role in achieving success by continuously seeking a more comprehensive response to rural poverty and community development issues Labor intensive methods in road work where relatively low wages make them cost effective provided a sustainable source of supplementary employment for the poor especially in rural communities Also critical for success throughout the implementation of the project was the participatory approach in subproject generation as well as the extensive involvement of NGOs the use of micro enterprises for maintenance and the inclusion of a pilot for non motorized transport In particular the following lessons were relevant for the design and implementation of the second phase i despite its potential risk beneficiary participation invigorates project sustainability without compromising the quality and standards of interventions i1 the fragile dynamics of local development calls for close monitoring of the distribution effects of the benefits iii side social benefits
38. has become the largest papaya producer in the region with around 2 000 has of this crop due to land access provided by road improvement Box Plan Piloto Selva The PPS has benefited the Shipi o Conibo of this area One of the largest Indigenous groups of the Peruvian Amazon basin An unexpected outcome of the PPS has been a significant increase in papaya production in the Masisea district turning it in one of the largest producer s area in the Peruvian Amazon basin Some of the NMT tracks link small villages with lakes Heavy road rehabilitation equipments are transported by that facilitate access to fishing resources encourages boat on the Ucayali river fishing farm investing and has potential to incentive tourism for the benefit of the surrounding communities Component 6 Institutional Development This component encompassed four activities 6 1 Improving Rural Transport Policies and Strategies Key outputs financed under this activity include 55 Strengthen decentralization policies Within this activity Provias Descentralizado maintained an active dialogue with other Peruvian agencies involved in the decentralization reforms The program was highlighted in the successive Government s Annual Transfer Plans Planes de Transferencia as one of the most successful and effective initiatives to transfer new responsibilities to sub national governments Make the financing of routine maintenance sustainable Through
39. integrado y fiable mediante la rehabilitaci n y mantenimiento de stos y los enlaces fundamentales que los conectan ya sea a la red vial departamental o nacional Sin mantenimiento en el lago plazo la transitabilidad de las carreteras se ver n comprometidas y con ello una gran cantidad de servicios que impactan directamente en los niveles de vida de los pueblos se habr n distanciado de sus objetivos El sistema de mantenimiento vial comprende i El Mantenimiento rutinario que consiste en intervenir inmediatamente despu s del proceso de rehabilitaci n y comprende la realizaci n de una serie de actividades permanentes destinadas a garantizar condiciones de circulaci n seguridad y transitabilidad satisfactorias durante todos los d as del Este tipo de mantenimiento tiene el objetivo de ejecutar acciones rutinarias y por lo general manuales para reparar el deterioro de la v a por el uso es intensivo en mano de obra y utilizaci n de herramientas y materiales de la zona por lo que PROVIAS DESCENTRALIZADO ha dise ado un modelo que promueve la participaci n de entidades jur dicas denominadas gen ricamente microempresas de mantenimiento vial MEMV conformadas con pobladores de las localidades que interconecta la v a propiciando su paso de la condici n de beneficiarios pasivo a la condici n de operadores activo con las implicancias en el empoderamiento de los pobladores y pobladoras rurales El costo promedio
40. levels reported in the baseline studies three years after completion of road improvements 2 Employment generated and creation of further income earning activities stimulated in rural areas e 10 000 one year equivalent seasonal unskilled jobs generated by road rehabilitation works e 5 500 one year equivalent permanent unskilled jobs generated by road maintenance works e 300 community organizations and or micro enterprises engaged in local development initiatives income earning undertakings identified through the Local Development Window LDW with women participation above 30 3 Local institutional capacity strengthened to manage rural transport infrastructure on a sustainable basis and launch community based development initiatives e 100 of provincial municipalities co finance with the Rural Roads Program the maintenance of the rural road network rehabilitated in their jurisdictions through the arrangements set up under the project e At least 12 provincial municipalities graduated under the program assume full responsibility for execution of project activities e 470 micro enterprises engaged under contracts to deliver quality maintenance In addition the project s contribution towards the goal of reducing rural poverty and improving living standards was to be measured at the project s end in terms of e overall reduction of the incidence of poverty and extreme poverty by 1 and 2 percentage points respectively in the areas b
41. los Gobiernos Locales Institutos Viales Provinciales como parte del know how y normativa que se transfiere m s a n por que nuevo contexto de competitividad bajo el sistema de contrataci n p blica obliga fortalecer la participaci n comunal mediante un conjunto de mecanismos incentivos y procedimientos que faciliten esta acci n Por otra parte el marco normativo nacional actual favorece este proceso trav s de la daci n de la Ley de Igualdad de Oportunidades entre mujeres y hombres Ley N 28983 y el Decreto Supremo que aprueba las Pol tica Nacionales DS 027 2007 PCM de obligatorio cumplimiento para las entidades estatales y aplicable por tanto a los Gobiernos Locales ya que se deben presentar metas semestrales en doce rubros espec ficos siendo uno de ellos el de igualdad de oportunidades para mujeres y hombres PROCESOS PARTICIPATIVOS La participaci n es el proceso por el cual las personas y entidades que tienen un inter s leg timo ejercen influencia y participan en el control de las iniciativas de desarrollo y en las decisiones y 111 recursos que los afectan En este sentido PROVIAS DESCENTRALIZADO impuls varios procesos participativos en las diferentes actividades que desarrolla tanto los Gobiernos Locales que son los que tienen competencia sobre los caminos rurales como los usuarios de los caminos comunidades beneficiarias y sociedad civil en general participan desde diversos ngulos en las distintas etapas
42. making rural roads one of the sectors where decentralization has been the most successful Improved transport conditions of rural roads can translate into better access to social services health education and to income generating opportunities The three impact evaluations of the rural roads program illustrated the benefits of rural roads interventions on school attendance visits to health centers but also access to markets and agricultural productivity These results are a strong advocate for investing in rural roads as part of a poverty reduction and growth strategy for rural areas 39 Participatory planning and inclusion can ensure better targeting of resources while better responding to community needs The project aimed to empower the rural poor in the process of selecting roads that should be rehabilitated In this context participatory plans identifying key rural roads and NMT paths or other rural infrastructure in the case of the Participatory Provincial Infrastructure Plans ensured that local stakeholders needs were fully reflected in the prioritization of investment alternatives and helped understand the poverty links as perceived by communities Various consultations and participatory workshops during the design phase in the targeted villages ensured the engagement and inclusion of all beneficiaries and community members from the design through the implementation phase A methodology was developed so that local stakeholders could
43. mantenimiento vial que los posiciona como especialistas en el mbito de su competencia Tienen acceso a capacitaci n t cnica especializada y sostenida Est n sujetos a un sistema de monitoreo y evaluaci n tanto por parte de la instituci n como por parte del gobierno local Porseruna entidad legalmente reconocida y constituida tienen capacidad de participar en convocatorias diversas tanto de entidades t cnicas viales como de organismos de desarrollo local como las Mesas de Concertaci n Local los Comit s de Coordinaci n Local Realizan acciones de proyecci n a la comunidad y gobierno local tanto con prestaci n de servicios como realizando jornadas de mejoramiento de calzadas y otras obras civiles El modelo de microempresas rurales fue una respuesta oportuna frente a la inexistencia tanto de agentes como de mercados de trabajo con las exigencias que plantea el mantenimiento rutinario de los caminos rurales bajo un esquema promocional para la creaci n de Asociaciones Civiles microempresas con participaci n de la comunidad Sus principales fortalezas son 41 Al menos un 30 de hogares rurales est n jefaturados por mujeres Participaci n de mujeres rurales en las microempresas de mantenimiento vial Aucahuasi N rida 42 2e ss 5 El t rmino empoderamiento alude la capacidad de cada ser humano de tomar decisiones s mismo y de definir prioridades seg n sus perspectivas y concepcione
44. of Inexistence of Archaeological Remains provided by the Peruvian Cultural Authority INC The CIRA for the Leymebamba segment is pending b In Ancash Acovichay Paria Yanacancha Llupa Nueva Florida this track already includes the archaeological monitoring study while its implementation is pending c In Cusco the rural road to Choquequirao includes the archaeological monitoring study and has obtained the CIRA from INC the work has been completed 20 2 3 Post completion Operation Next Phase A key objective of the arrangements envisaged in the post completion phase of the project was to strengthen the institutional and financial sustainability of rural road maintenance and to ultimately enable a gradual transfer of responsibilities to the local environment This objective was achieved with specific measures being taken by the GoP in the broader context of the decentralization agenda and in the context of the following specific reforms i the Supreme Decree No 017 2006 MTC making permanent the transfer of specific resources to municipalities to finance routine road maintenance and ii the creation of specific decentralized institutions Provincial Road Institutes in charge of managing the rural roads network Transition arrangements during post completion phase Due to the special nature of the statutes of the rural road program its duration was in principle limited to the execution of the proposed project The Governm
45. of road safety may be one of the most obvious positive consequences improved access could also be thought to bring alcoholism and drug addiction to remote rural communities Evaluation Methodology Impact evaluation is based on the double difference methodology see Box 6 For each road segment improved under the program a control road segment sharing similar characteristics except the fact that it was not intervened was selected m 16 A shortlist of possible control road segments was first established based on the following three conditions 1 be a type of road similar to the intervened road ii not being scheduled for rehabilitation and iii being independent from the intervened road so that no spillover benefits can occur The final 72 In the case of the 2006 evaluation selected road segments included rural roads but also NMT tracks Populations living nearby the improved and control road segments were then surveyed Survey questionnaire tried to capture households socio economic characteristics human capital and productive activities as well as availability of social and economic infrastructure access to public and private services and presence of key State programs 108 indicators classified in 15 categories 17 were included in the questionnaire Box 6 Double Difference Impact Evaluation The double difference methodology is a common quasi experimental technique used to assess the impacts of th
46. of the project benefits were entered into the model to produce the ex post evaluation results The producer s surplus model was developed taking into account information collected from the feasibility studies related to representative agricultural and livestock characteristics in the area of influence of the project roads To determine the actual rehabilitation of rural roads unit costs and to compare them with the feasibility estimates and the contract costs a sample of 35 rural roads projects subject to CBA were reviewed The average unit costs estimated on the feasibility studies for the rehabilitation works is US 16 657 per km and the average contract costs and actual costs is about US 12 813 per km Contract costs are 23 lower than estimated costs and actual costs are about the same as contract costs The review of 58 feasibility studies subject to CEA shows that the unit costs estimated on the feasibility studies for the rehabilitation works is US 8 833 per km and the average contract costs and actual costs is US 12 090 per km Contract costs are 36 higher than estimated costs and actual costs are about the same as contract costs Figure 5 presents a histogram of the ratio between the actual unit costs divided by the estimated costs for the 93 projects Figure 5 Actual vs estimated costs for rural roads projects Rural Roads Projects Number of Rehabilitation Projects Actual Cos
47. poor was observed for NMT tracks This suggests that this type of basic transport infrastructure alone can make a strong difference for the most remote communities by bringing them access and allowing them to trade their products in local markets On the other hand the poverty effect of rural roads investments is less obvious results for generation 2000 even suggest that in the long term extreme poverty increases possibly from as a consequence the migration of the wealthier households One interpretation should be that rural roads alone despite their other benefits on 78 bringing access to social services are not sufficient to have a noticeable impact on poverty and that a combination of rural roads with other types of investments e g rural infrastructure is needed to overcome possible threshold effects This conclusion reinforces the relevance of introducing a rural infrastructure pilot in the follow on operation Decentralized Rural Transport Project Indeed other studies conducted in Peru reported evidence that impact on rural households income is greater when rural transport is combined with other rural infrastructure interventions bundling benefits Table 14 key effects on income and poverty double difference percent Effect Generation Generation 2004 2000 Total Rural Roads Tracks Per capita monthly income 9 3 o 9 5 o 6 0 25 6 Net monthly income from main activity 10 2 1 6 43
48. production value as a result of productivity increase linked to the road improvement A detailed review of 12 feasibility studies shows that in year 3 on average the total agricultural and livestock production benefits profits net of production costs are 1596 higher with the project compared with the 24 without project scenario which is broadly in line with the ex ante economic evaluation assumptions For the 77 rural roads subject to a CEA i the average rehabilitation cost is US 14 439 per km ii the total rehabilitation cost is US 17 62 million iii the average cost per beneficiary indicator is US 46 per person and iv the average total population served is 594 persons per km of which 390 persons are direct beneficiaries The CEA cost per beneficiary indicator was computed dividing the present value of the road agency costs over a 10 year evaluation period by the total population served direct plus indirect beneficiaries Moreover a sample of 299 non motorized tracks improvements feasibility studies were reviewed totaling 2 636 km 73 of the total program of 3 607 km on which CEA was performed For these tracks i the average improvement costs is US 2 500 per km ii the total improvement cost is US 6 6 million iii the average cost per beneficiary indicator is US 27 per person and iv the average total population served is 295 persons per km of which all are direct beneficiaries Ex post economic evaluation The
49. roads constituted by far the most adequate technical solution in rural Peru Moreover under proper maintenance arrangements gravel roads are both a cost effective and sustainable option Municipalities that are provided with the right mix of technical expertise and financial resources can efficiently manage rural road assets Decentralization in Peru has been most successful in the rural roads sector Starting in 1995 Peruvian authorities have successfully designed and implemented a rural road management program through several pilots which has led to the development of innovative instruments and new rural transport approaches The inherent institutional and financial weaknesses of municipalities made the initial efforts to decentralize rural road management and to build up local capacity in the rural road sector difficult These weaknesses were addressed through the creation of Provincial Road Institutes PRIs which have proved to be an efficient decentralized model for the management of rural roads provided they receive adequate technical and management assistance to start them up The PRIs established 12 The first experimental decentralized Provincial Road Institute PRI was in Arequipa there are now 108 PRIs with basic or fully established operational capacity 40 under the authority of the provincial mayors allowed municipalities to reach sufficient institutional capacity to manage effectively their rural roads assets while b
50. roads were rehabilitated using exclusively low cost rehabilitation techniques gravel roads prioritized by local stakeholders through participatory road planning It is estimated that rehabilitation works helped create 27 514 seasonal unskilled jobs compared to an initial objective of 10 000 8 258 from rehabilitation of rural roads 1 614 skilled and 6 644 unskilled 8 126 from the rehabilitation of NMT tracks 615 skilled and 7 511 unskilled and 11 131 from periodic maintenance 2 566 skilled and 8 565 unskilled Component 2 Routine and Periodic Maintenance of Rural Roads and Connecting Primary and Secondary Roads At closing the project had extended the routine maintenance system with micro enterprises from 11 295 km to 14 750 km compared to an initial objective of 13 495 km To this end the number of micro enterprises had been increased from 340 at project start up to 532 at closing compared to an initial target of 470 A greater number of micro enterprises were needed to maintain the larger network of rehabilitated roads roads are better maintained when a single micro enterprise is in charge of 20 km of roads instead of 30 km as it was initially thought Out of the 642 micro enterprises created by Provias the financing of 456 has been transferred to local governments 126 in 2003 and 330 in 2004 2005 109 to regional governments and 13 to Provias Nacional as a pilot to experiment micro enterprise based maintenance on primar
51. solve key tradeoffs between investment alternatives while limiting the risks of capture of the decision making process by individual interests The provincial level was the appropriate compromise between working at a territorial level to create economies of scale and ensuring proper accountability to rural stakeholders A maintenance strategy for transport infrastructure can act as a catalyst for developing private sector and entrepreneurial attitudes The inclusion of micro enterprises to perform routine maintenance for the upkeep of the road network addressed the difficulties of ensuring central government maintenance of a myriad of scattered rural roads and the failure of traditional municipal accounts to provide sufficient funds for financing In addition to being cost effective the micro enterprise program had spillover effects on local development initiatives creating employment opportunities for the rural populations involved and becoming contact points for extension services and even mobilizing untapped local resources for local community ventures Gravel roads can be a sustainable and cost effective technical solution to improve rural transport infrastructure Peru s experience confirmed international evidence that paving roads is not the most cost effective solution to address transport needs on low traffic roads i e below 200 vehicles per day Instead for rural roads where traffic levels do typically exceed 50 vehicles per day gravel
52. that were made in the provinces of Sihuas Ocros both provinces are located in the department of Ancash and Picota department of San Martin it is estimated that it could range from 56 000 to 184 000 km Based on these assumptions in the departments were the project has been operating it is possible to estimate that 4 to 12 percent of the total NMT has been improved NMT tracks that were improved were selected by local stakeholders through prioritization workshops that were part of the preparation process for the participatory provincial road plans The organization set in place for the improvement of NMT tracks involved three actors the beneficiary population constituted in rural road committees Comit s viales in partnership with local authorities local NGOs specialized in rural development and more particularly in sustainable and participatory processes and national government through Provias Descentralizado Each actor brought its own resources and capacity Provias Descentralizado financed 70 of the cost of the works US 1 750 per km and provided overall supervision and technical assistance Local NGOs were responsible for financing and conducting preliminary studies and socio economic evaluation of the targeted area these studies cost US 400 per km promoting organizing and constituting rural road committees and making a technical and operational manual including a cost analysis Rural Road committees were then
53. the surface camber supplemented from time to time with spot interventions to restore passage which is needed typically during the rainy season between December and April Routine maintenance of the roads rehabilitated through the project would be co financed by local governments through a specific arrangement The Maintenance Cofinancing Mechanism The project would finance these activities taking into consideration that most Peruvian municipalities have very limited resources available for recurrent expenditures especially in the poorest areas which are the main target of the project However other roads could also be included if local governments committed themselves to supporting these activities Maintenance of roads built or rehabilitated by other rural development programs could also be eligible for project support provided they were linked with or in the vicinities of road sub projects implemented under the project The project extensively relied on the provision of services through the private sector However municipalities and associations of municipalities capable of setting up an efficient plant pool could be eligible up to a certain amount to undertake periodic maintenance works under agreements that would set out program targets and quality standards to be met as well as the standard rates to compensate the municipalities upon completion of the agreed works Component 3 Improvement of Non Motorized Rural Transport This compo
54. to leading the program Finally the program would involve road users and other stakeholders in the road management process to increase municipalities accountability 3 Developing community based micro enterprises for road maintenance The project would finance all activities related to 1 promoting the development of micro enterprises among leaders of the communities and base organizations ii assisting micro enterprises throughout their constitution including legal and technical advice 111 contracting out to micro enterprises maintenance of all roads rehabilitated under the project iv putting in place adequate contract arrangements and payment systems v providing on the job assistance training on technical work organization financial management accounting and business administration skills until micro enterprise members develop entrepreneurial capacity vi supervising and monitoring maintenance works and micro enterprise activities to ensure smooth implementation of the program and vii supporting a dissemination campaign among local governments to sensitize them about the benefits of the micro enterprise program 4 Strengthening rural communities and households capacity to create and engage in social and economic development opportunities This component would establish a local development window LDW through a network of strategic partnerships with civil society government and donor organizations in order to 1 to st
55. y mejorar la conectividad y accesibilidad de la poblaci n rural Institucionales ttransferir la gesti n de los caminos rurales a los gobiernos locales previo desarrollo institucional y fortalecimiento de sus capacidades para lograr una gesti n eficiente y sostenible Financieros asegurar la sostenibilidad financiera del mantenimiento de los caminos rurales con participaci n de los gobiernos locales Econ micos y sociales vincular el camino rural rehabilitado y Mantenido con la generaci n de Capacidades locales para desarrollar Proyectos productivos y buscar complementariedades con otros Proyectos de infraestructura econ mica MODELO DE INTERVENCION Caminos Rurales II constituy una respuesta innovadora y creativa a las demandas m s urgentes de la poblaci n mediante la propuesta de un modelo de intervenci n acorde a la realidad del 95 mbito rural con peculiaridades poco entendidas y atendidas hasta entonces Propuso nuevos enfoques procesos y proyectos como la descentralizaci n de la gesti n vial rural la aplicaci n de procesos participativos en la planificaci n y ejecuci n de sus intervenciones el enfoque de g nero en algunos componentes y actividades del Programa la promoci n de proyectos productivos mediante la Ventana para el Desarrollo Local entre otros ubic ndolo como un Programa pionero en temas complementarios y que potencian su objetivo principal la integraci n y acceso de la poblaci n rural Es pa
56. 0 Employment category Public employee 0 3 1 1 5 1 4 0 2 Private employee 0 7 0 4 0 2 0 9 o Public worker 10 6 40 3 40 3 410 7 Private worker 3 2 4 11 0 413 6 4 0 e Farmer Fisherman 1 6 11 8 411 9 11 2 Other independent worker 2 1 1 4 0 7 3 2 Unpaid family worker 41 5 2 5 6 0 8 4 Productive activity Agriculture Forestry 1 6 2 0 0 7 49 7 Cattle breeding 1 8 2 3 1 2 5 7 o Commerce and services 0 5 0 4 0 4 40 1 Others 10 6 40 1 11 3 3 3 o significant at 20 percent significant at 10 percent significant at 5 percent significant at 1 percent Other effects on agricultural and forestry activities Results show that improved rural roads helped increase the cultivated area to an important extent However the net agricultural income per area was found to decrease though results are significant at only 20 percent One proposed interpretation is that cultivated products were locally consumed and that overproduction may have resulted in a drop of prices Regarding NMT tracks a limited reduction of cultivated area was observed significant at only 20 percent as well as a very important drop of expenditures per cultivated or forestry area This drop is most likely due to the increased involvement of free labor force unpaid family workers The reduction of cultivated area might be explained by the increased possibility for households to focus on more prod
57. 05 when Provias received a best government practice award from the Peruvian civil society 44 ANNEXES Annex 1 Project Costs and Financing a Project Cost by Component in USD Million equivalent Appraisal Estimate Actual Latest Estimate Percentage of DU nans USD millions USD millions Appraisal REHABILITATION OF RURAL ROADS AND CONNECTING 61 70 65 33 105 88 ROADS ROUTINE AND PERIODIC MAINTENANCE OF RURAL ROADS AND CONNECTING SERI 38 9 at ROADS IMPROVEMENT OF NON MOTORIZED RURAL 5 65 5 32 94 10 TRANSPORT PROVINCIAL ROAD MANAGEMENT PILOT ze gone RIVER TRANSPORT IMPROVEMENT PILOT 2n 162 ud INSTITUTIONAL DEVELOPMENT IMPROVEMENT OF RURAL 1 37 1 77 129 18 TRANSPORT POLICY AND STRATEGIES IMPROVEMENT OF RURAL ROAD PLANNING AND 3 71 2 92 78 66 MANAGEMENT DEVELOPMENT OF COMMUNITY BASED MICROENTERPRISES FOR ROAD 220 TUR HS MAINTENANCE STRENGTHENING LOCAL CAPACITY TO ENGAGE IN SOCIAL AND ECONOMIC DEVELOPMENT INITIATIVES 072 d 65 LOCAL DEVELOPMENT WINDOW PROJECT ADMINISTRATION 14 00 14 89 106 36 Total Baseline Cost 150 00 136 43 90 95 Physical Contingencies 0 00 0 00 0 00 Price Contingencies 0 00 0 00 0 00 Total Project Costs 150 00 0 00 0 00 Project Preparation Fund 0 00 0 00 0 00 Front end fee IBRD 1 00 1 00 100 00 Total Financing Required 151 00 137 43 91 02 45 b Financing Source of Funds Borrower Inter American Development Bank International Bank for Reconstruction and Develo
58. 1 The ex post economic evaluation was done considering the following assumptions a no adjustments were made in the number of livestock b an increase of 22 to take place in year 2 in the overall agricultural area for key agricultural products in the area of influence of the sub projects 65 no adjustments were made to the costs of production for either agricultural livestock related products d no adjustments were made to the agricultural yields or to farm prices e average rehabilitation cost of US 12 813 per km f average routine maintenance cost of US 647 per km per year g program network length of 5 018 km for a total investment of US 64 29 million and h discount rate of 14 that was the prevailing discount rate in Peru during project implementation The results of the ex post analysis yield an economic rate of return ERR of 3196 and a net present value NPV of US 64 05 million at 14 discount rate Table 8 summarizes the economic evaluation results Table 8 Economic evaluation results Ex ante Feasibility Studies Ex post Length km 1 563 984 5 018 Investment M US 20 34 16 39 64 29 Investment km US km 13 017 16 657 12 813 ERR 96 2596 2496 3196 NPV at 14 Discount Rate M US 12 75 6 75 64 05 NPV at 14 Discount Rate Investment 0 63 0 41 1 00 Considering that the impact evaluation has found a 7 increase in the number of livestock without high sta
59. 4601 L C TF Number s IBRD 46140 ICR Date 06 05 2007 ICR Type Intensive Learning ICR GOVERNMENT OF Lending Instrument SIM Borrower PERU iginal Total Polo USD 50 0M Disbursed Amount USD 48 2M Commitment Environmental Category B Implementing Agencies Provias Rural renamed Provias Descentralizado in 2006 Cofinanciers and Other External Partners Inter American Development Bank IADB B Key Dates Process Date Process Original Date Cun Date s Concept Review 02 23 2000 Effectiveness 12 20 2001 12 20 2001 Appraisal 10 23 2000 Restructuring s Approval 06 19 2001 Mid term Review 04 19 2004 04 19 2004 Closing 06 30 2005 11 30 2006 C Ratings Summary C 1 Performance Rating by ICR Outcomes Highly Satisfactory Risk to Development Outcome Moderate Bank Performance Highly Satisfactory Borrower Performance Highly Satisfactory C 2 Detailed Ratings of Bank and Borrower Performance by ICR Bank Ratings Borrower Ratings Quality at Entry Highly Satisfactory Government Satisfactory NINE Implementing Quality of Supervision Highly Satisfactory Agency Agencies Highly Satisfactory Overall Bank Overall Borrower Highly Satisfactory Performance Highly Satisfactory C 3 Quality at Entry and Implementation Performance Indicators Implementation indicators QAG Assessments Rune Performance if any Potential Problem Project Quality at Entry at any time Yes No il QEA
60. Bank a Bank Performance in Ensuring Quality at Entry Rating Highly Satisfactory The Quality at Entry is rated as highly satisfactory The project preparation team was able to take stock of all the lessons of the previous operation Rural Roads Rehabilitation and Maintenance and include them in the design of this Project These lessons were described in the learning ICR of the previous operation One example of lessons that was drawn from the previous operation is the need for an instrument that could accelerate the emergence of productive activities in the areas where transport conditions have been improved in order to increase the impact on poverty This led to the design of the Local Development Window Justifications for the rating also include e The introduction of a sound monitoring and evaluation system based on the result of the 2000 impact evaluation study This study was the first attempt to rigorously 35 evaluate the actual impacts of rural roads interventions based on extensive household surveys and the use of a control group The preparation team was able to convince Provias that thorough impact evaluation studies despite their costs could facilitate a learning process through which rural transport policies could be disseminated and improved e The design of decentralized implementation procedures in particular the Provincial Road Institutes model first on a pilot basis but with the mid long term object
61. Bank and the IaDB for the purpose of the Second Rural Roads Project at a time when the two banks had different procurement policies Financial Management and Disbursement The management of financial management and disbursement processes has been satisfactory External auditors Rodolfo Retamozo y Asociados were designated in November 2001 by the Contraloria General de la Republica They were renewed for the following years except in 2003 when the firm Iwashita Nue y Asociados was selected Audited financial statements were sent to the Bank and filed for each year of implementation Audit reports were generally sent to the Bank on time except for year 2003 when a 6 month delay was observed Audit reports were reviewed by the Bank s FM team who concluded that 1 reports had been prepared in accordance with Bank guidelines ii auditors issued unqualified opinions on the Statement of Sources and Uses of Funds on the Statement of Cumulative Investments on the Statement of Expenditures and on Special Account Statement iii in general the auditors found that the Second Rural Roads Project complied with the terms of the agreement and the applicable laws and regulations and iv internal controls had been evaluated as satisfactory However clarifications were required by the Bank FM team in 2005 with regard to the insufficient availability of counterpart funds and its impact on disbursement levels To address this issue and accelerate disbursement
62. For example bringing access to a forest zone may increase deforestation Hammer and al 2000 Effects on participation The effect of rural roads programs on community participation and social capital involve complex mechanisms for which empirical evidence is hard to establish ADB 2001 One first expected effect is that improved access brings remote households and individuals closer to the rest of society allowing them to voice their needs and participate more easily in the decision making process for public policies However these benefits could be diminished by some negative effects indirectly associated with rural roads programs For example the fact that the poorest among poor rural communities may not benefit as much as the less poor segments of the population may increase inequities and ultimately increase the income gap within rural communities Also permanent migration to more urbanized areas may reduce the capital social in the targeted communities Finally communities may be negatively affected by the introduction of or greater exposure to new values brought from the outside thanks to the improvement of access Devres Inc 1980 It is important to note that these possible effects are speculated but that none has been formally reported in the literature Effects on safety and security The effect of improved rural transport on security is also complex and ambiguous and has not been empirically validated While benefits in terms
63. For this second impact evaluation a more elaborate and accurate methodology had been used the double difference technique This second study also served as a baseline for the end of the project impact evaluation which has the same methodology whose results are detailed in Annex 5 Two impact evaluation studies will be conducted during the follow on project phase III one at mid term and one at the end of the project using a priori the same methodology and ensuring the sustainability of M amp E arrangements This M amp E framework not only permitted the Bank to regularly track the project implementation progress but also provided the GoP with an instrument to assess the implementing agency s performance and gave Provias Rural a tool that helped for planning and programming activities In addition the various monitoring instruments as well as the results of the first two impact evaluation studies facilitated the design of the project in particular the assessment of indicators and their target values and illustrated 18 the good performance of the project It also demonstrated that rural transport projects have an impact on poverty that differs between rural roads and NMT tracks while their effects on transport conditions and access to markets and social services is more direct Finally the M amp E framework constituted an active learning process for Provias given that the implementing agency collected a lot of information on the project
64. Medium Low Base line Basic Access achieved 1998 El Nino flooding drought 8 Base line changes due to external factors 1999 2001 Economic Recession Although the most relevant results are consistent there exist differences between the conclusions from these two evaluations performed by Instituto Cuanto and the conclusions from the third evaluation performed by GRADE These differences could come from methodological differences between the first two evaluations and the third one e first evaluation looked at the impact of the Road Rehabilitation and Maintenance Project 1 phase of the Peru Rural Roads program implemented in 82 1995 2000 This evaluation was performed without a baseline One objective of this first evaluation was to provide a baseline for the 2 Rural Roads project e The first and second evaluations were performed without assessing the standard deviation of results so that the statistical significance of the various effects is not known only the intensity of these effects e The first two evaluations did not discriminate between rural roads and NMT tracks In the first evaluation no NMT tracks were taken into account and in the second evaluation NMT represented one third of the sample but were not isolated in the analysis The third evaluation included half of NMTs and half of rural roads and distinguished the impacts achieved for the two types of infrastructure These li
65. PROVINCIAL BOUNDARIES REGIONAL BOUNDARIES o o NATIONAL CAPITAL IONS INTERNATIONAL BOUNDARIES MAY 2007 Y Un gt IBRD 35516 E PERU M LOCATION OF THE i LOCAL DEVELOPMENT so 549 vem muss WINDOW INITIATIVES A PROVINCES WHERE THE LDW HAS BEEN y 200 Miles IMPLEMENTED E EC o SELECTED CITIES AND TOWNS REGIONAL CAPITALS NATIONAL CAPITAL RIVERS PROVINCIAL BOUNDARIES REGIONAL BOUNDARIES INTERNATIONAL BOUNDARIES The circled numbers correspond to the list of provinces in the table d Talara iC AA y mf AR Chachapoyas sono Chimbote SS y 30 PACIFIC E Y OCEAN i Puerto Maldonado NB OF DISTRITAL N S gS 1 E PROVINCE NB OF PROJECTS ATA NB OF PROJECTS WITH papticiparoRy PRE FEASIBILITY LEVEL FINANCING DEVELOPMENT PLANS z pes Agile q Abancay C c Puquio CONCEPCION CHUPACA HUANCAYO CHANCHAMAYO SATIPO TARMA HUANUCO LEONCIO PRADO PACHITEA AMBO OXAPAMPA HUARI UTCUBAMBA CHACHAPOYAS AYMARAES TAYACAJA balli o Nazca San Juan Antiquipa Desaguadero Mollendo Jd CNN 4 BOLIVIA Tacna O SS CHILE C5 c c c ao MAY 2007
66. Piloto Selva Pilot Plan for the Selva macro region Highway Development and Management model PRI Provincial Road Institute International Bank for Reconstruction and RED Roads Economic Decision model Development Implementation Completion Report RIPA Road Institute for the Province of Arequipa Inter American Development Bank SIAF Sistema Integral de Administraci n Financiera Nacional System of Public Investment Implementation Status Report SIGAT Sistema de Gesti n Administrativa y T cnica System for Technical and Administrative Management Latin America and Caribbean region SIM Sector Investment amp Maintenance loan Local Development Window SNIP Sistema Nacional de Inversi n Publica National Public Investment System Millenium Development Goal SUNAT Superintendencia Nacional de Administraci n Tributaria National Agency for Tax Management Ministry of Economy and Finance WB World Bank Vice President Pamela Cox Country Director Marcelo Giugale Sector Manager Jose Luis Irigoyen Project Team Leader Nicolas Peltier Thiberge Peru Second Rural Roads Project CONTENTS Data Sheet i oso eU DER 1 A Basic Information ssa ea E e LI ARE i Ba Rey Dates EE i C Ratings Sumtiaty AAA Ce PRINT RO 1 D Sector and Theme COUPS PEIPER 11 E Bank Sissi id 11 F Results Framework doi id 111 G Ratings of Project Performance in 5 5
67. Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank Report No ICR0000366 IMPLEMENTATION COMPLETION AND RESULTS REPORT IBRD 46140 ONA LOAN IN THE AMOUNT OF US 50 MILLION TO THE REPUBLIC OF PERU FOR THE SECOND RURAL ROADS PROJECT June 5 2007 Sustainable Development Department Bolivia Ecuador Peru Venezuela Country Management Unit Latin America and the Caribbean Region AADT CAS CBA CEA CND CVR ERR ESW FM GIS HDM IBRD ICR IADB ISR LAC LDW MDG MEF CURRENCY EQUIVALENTS Exchange Rate Effective June 5 2007 Currency Unit Peruvian Nuevo Sol 3 175 PEN US 1 Fiscal Year January 1 December 31 ABBREVIATIONS AND ACRONYMS Average Annual Daily Traffic MEMV Micro Empresas de Mantenimiento Vial Micro enterprises for Road Maintenance Country Assistance Strategy M amp E Monitoring and Evaluation Cost Benefit Analysis MTC Ministerio de Transporte y Comunicaciones Ministry of Transport and Communications Cost Effectiveness Analysis NGO Non Governmental Organization Consejo Nacional de Descentralizaci n NMT Non Motorized Transport National Decentralization Council Comit Vial Rural NPV Net Present Value Rural Road Committee Economic Rate of Return PAD Project Appraisal Document Economic and Sector Work PDO Project Development Objective Financial Management PII Provincial Infrastructure Institute Geographic Information System PPS Plan
68. Road Institutes that were initially envisaged on a pilot basis and could subsequently be scaled up The project was highly regarded by other public agencies and by civil society throughout implementation GoP imposed fiscal constraints during the years 2004 2005 resulted in lack of counterpart funds or binding indebtedness ceiling during the last years of implementation which delayed implementation requiring a 17 months extension of the closing date to be processed However it should be noted that the project was one of the 37 least affected by the fiscal constraint among other public programs and that it remained the best disbursement performer in the Bank investment portfolio during that period Despite significant fiscal revenues the Garcia administration imposed particularly in 2006 a number of strong austerity measures on the public sector These measures did not affect Provias investment program but led to the unfortunate cancellation of a dissemination event international rural transport seminar that had been scheduled in the last trimester of 2006 b Implementing Agency or Agencies Performance Rating Highly Satisfactory The performance of Provias Rural renamed in 2006 Provias Descentralizado was rated highly satisfactory As explained above this rating is justified by both the robust implementation efficiency of Provias which together with reduced costs explain why initial physical targets were exceeded but also
69. SHED E PRis WITH BASIC CAPACITY ESTABLISHED PRis IN CREATION NO PRI o SELECTED CITIES AND TOWNS REGIONAL CAPITALS NATIONAL CAPITAL L RIVERS PROVINCIAL BOUNDARIES REGIONAL BOUNDARIES INTERNATIONAL BOUNDARIES COLOMBIA Putumayo IBRD 35059 MAY 2007 IBRD 35515 Puerto Curaray 2 ex A E Zo cor _ Caballococha Tumbes PO TUMBES 3 Iquitos bi Talara Sullana YPIURA SA 5 5 5 Yurimaguas Moyobamba A Ly Bos SAN YEQU SX MARTINI Cajamarca A To Cruzeiro lo Sul 61 68 km 1 PACIFIC OCEAN E MADRE lt N c N A DE DOS S s Puerto CUS CO y Sintuya W8 A Maldonadog PERU Quillabambaf amp NATIONAL COVERAGE BY THE SECOND RURAL ROADS PROJECT re KM OF RURAL ROADS REHABILITATED 44440 OUTSIDE THE 12 INITIAL REGIONS PERCENTAGE OF ROAD NETWORK REHABILITATED BY THE PROJECT REGIONS WHERE THE PROJECT HAS BEEN IMPLEMENTED PROVINCES WHERE THE PROJECT HAS INTERVENED ON A PILOT BASIS SELECTED CITIES AND TOWNS REGIONAL CAPITALS CPN Lanlacuni B Y e usco Buenaventura AREQUIPA San NEA Ti Antiquipa gt Mollendo Mogdegu RIVERS MAIN ROADS RAILROADS
70. a uno de ellos como base referencial el c lculo de los costos de una tercera operaci n EVOLUCION DEL PROGRAMA Existen numerosos aspectos en los cuales a trav s del tiempo de ejecuci n del programa se han logrado mejorar A continuaci n resaltamos los m s importantes Sistema Monousuario con limita ciones en su proceso En la Actualidad no existe la inscripci n de los caminos vecinales como patrimonio vial en ninguna Instituci n del estado Se realizaba una doble digitaci n en el ingreso de la informaci n en el SIGA y en el SIAF lo que significaba una perdida significativa de recursos humanos y tiempo Se desarrollo todos los procesos administrativos en foma integrada multiusuario Desa mollar metodolog a en coordinaci n con la DGCF para crear un Sistema Nacional de Inscripci n de Caminos SINAIC Se desarollo e implemento exitosa mente las interfases con el SIAF en lasfases de Compromiso Devengado y Girado haciendo m s confia ble la informaci n procesada Sistema Integrado de procesos t cnicoscon los procesos administrativos se prev su implementaci n en el presente Implementaci n del SINAIC en Gobiemo Central Regional y vecinal Se desamollaran e implementar n otras interfases requeridascomo la del SIGAT SEACE SIGAT SNIP 116 Losestudios de impacto ambiental han sido hechos por especialistas El rol de la mujerdentro del progra
71. aci n de las inversiones en caminos rurales fueron realizados por los Gobiernos Locales en Talleres Participativos de Priorizaci n sobre la base de ciertos criterios de elegibilidad Para desarrollar la gesti n vial descentralizada el Programa dise un Proyecto Piloto de Gesti n Vial Provincial en la provincia de Arequipa ensay ndose la propuesta de transferencia de la gesti n vial rural a la Municipalidad Provincial y 15 Municipalidades Distritales perif ricas a partir del cual ha ido replic ndose y mejor ndose gradualmente al resto de provincias del mbito Basados en la experiencia del Piloto de Arequipa as como en el impulso del proceso de descentralizaci n y transferencia que como pol tica de estado se impuls desde el 2002 se desarrollaron los mecanismos para la transferencia de la gesti n vial de los caminos rurales a los Gobiernos Locales buscando alcanzar no s lo objetivos viales sino hacer sostenible la transitabilidad a largo plazo en el marco de objetivos institucionales y financieros m s consistentes El estado situacional del Piloto de Arequipa refleja una evoluci n favorable con relaci n a su dise o original ya que ahora se proyecta como Instituto de Infraestructura del cual tenemos los siguientes resultados META META INICIAL EH ESTUDIOS DE CAMINOS VECINALES REHABILITACION DE CAMINOS VECINALES E E ANTENIMIENTO DE CAMINOS VECINALES 18 0 En general tanto la creaci n del I
72. al capital The project aimed to enhance social capital building by establishing a local development window which would lead to positive changes in many aspects of women daily life by supporting the following measures to engender project activities and promote women empowerment 1 providing training on gender issues to program staff majors and community leaders through the institutional development component ii fostering implementation arrangements that will gradually but effectively contribute to gender mainstreaming 111 supporting through the Local Development Window specific programs and productive undertakings that would improve women s access to resources and iv tracking gender impacts through the project s social and impact monitoring system to clarify what gender differentiated project outcomes can be anticipated and how different local realities might affect women s participation in project activities and benefits While the project would not set quotas women s participation in micro enterprises would be monitored to ensure that the application of the methodology for selecting micro enterprise members was not biased against women e Strengthening the framework for decentralization and for rural road maintenance in particular Peru s decentralization agenda aimed to develop capabilities and institutions at the local level and the transfer of resources to local governments In support of this agenda the project aimed to pr
73. ally manly transport agencies became a gender sensitive institution Gender Champions Gender know how and expertise was developed by both the appointed gender focal point in the agency headquarters and the consultant hired to design and monitor the Projects gender agenda Committed managers staff and beneficiaries also helped mainstream the gender perspective in Provias operations b Institutional Change Strengthening The Project fostered institutional changes at various levels At the national level through the progressive evolution of Provias Descentralizado from an executing agency to a regulating agency in charge of promoting sound rural roads policies helping local governments implement these policies and monitoring outcomes and impacts 11 Rapid Rural Poll specifically defines the population sample as representative of the community as possible Therefore women are an ineludible part of the consulted sample 29 At the municipal level through introducing innovative institutional and planning arrangements Provincial Road Boards Provincial Roads Institutes Participatory Provincial Road Plans capable of promoting greater cooperation among municipalities around common rural transport policies and of building sufficient institutional capacity in order to ensure the implementation of sound and sustainable decentralized rural transport policies in the broader context of Peru s decentralization reforms At the community
74. ana better access to health services was found to be one of the greatest benefits of rural roads programs Porter 2002 Similar evidence was found in the case of Malaysia Windle and Cramb 1996 and other Asian countries Hettige 2006 In addition to the positive effect on access and attendance improved transport conditions lead to better human resources and ultimately better quality of public services in Morocco it was found easier to attract and maintain qualified teachers and doctors in Absenteeism of teachers and doctors is a major problem in rural areas particularly in Peru where these professionals are spending their weekends in more urbanized areas or have to travel to cities to receive their payments Alcazar et al 2003 69 the areas targeted by a rural roads program as well as by other government initiatives to increase the availability of social services in rural areas Levy 2004 Ultimately increased access and higher quality of social services should lead to better education e g illiteracy rates and health e g diseases occurrence malnutrition rates indicators However these ultimate impacts depend on a number of factors other than just improved roads and there does not seem to exist significant evidence of such ultimate impact of rural roads programs in the literature Finally improved roads could mean better access and quality for other public services e g police justice although there does not s
75. ance in order to enable a gradual transfer of responsibilities to local governments Finally the project also piloted rural transport interventions customized to the specific conditions of the Peruvian Selva and introduced a new mechanism the Local Development Window aimed at facilitating the emergence of productive activities in the areas where transport conditions had improved Strategic choices for the project components were developed on the basis on cross sectoral dynamics that were identified as contributing to the persisting poor living conditions of rural households Improving rural accessibility through rehabilitation of transport infrastructure The inefficiency of the transport system continued to represent a significant constraint on the ability of rural households to access social and government services such as health education justice policing and public registries The project aimed to emphasize the connection of the benefited rural communities with a well integrated and reliable road transport system through rehabilitation and maintenance of a core road network composed of rural roads and connecting primary and secondary roads This strategy would help remove the bottlenecks constraining transport services in rural areas maximize the population benefited and overall have a greater social and economic impact than in the case of isolated road improvements Through improved road access the project would also permit easier
76. and its effects from the various monitoring tools and impact evaluation studies 2 4 Safeguard and Fiduciary Compliance Procurement The management of procurement processes by Provias Descentralizado has been satisfactory overall Three ex post procurement reviews were performed in September 2003 March 2005 and May 2006 Reviews formulated recommendations that helped improve the management of procurement processes including i archiving of procurement documents ii information included in the procurement plan iii training of procurement staff iv reception of bids v consultancies to be performed by individual consultants or firms and vi harmonization of procurement methods described in the Operational Manual and in the Legal Agreement In response to the conclusions from the ex post reviews a number of corrective actions were taken including i the contracting in 2005 of a consultant specialized in archives ii the organization of a training of Provias staff in Bank procurement guidelines iii the revision of bidding documents with a view to increase competition by limiting the number of firms disqualified at the time of bid opening and iv the processing of an amendment to the Legal Agreement with retroactive application so as to harmonize methods described in the Operational Manual and the Loan Agreement Finally it is worth mentioning that specific harmonized procurement documents had been agreed with the World
77. antes de los Sectores y de la sociedad civil En el mediano plazo institucionalidad de las Municipalidades Provinciales Transitar de planificaci n de infraestructura vial a infraestructura econ mica 108 Transitar de Institutos Viales Provinciales a Institutos de Infraestructura Econ mica Provincial IIEP Caracterizaci n y potencialidades territoriales El PIEP asume a las provincias como mbitos del Plan Articulan distritos ciudades intermedias y cuencas hidrogr ficas Cuentan con una masa cr tica de recursos y un tama o suficiente para visualizar externalidades Permiten un manejo eficiente de recursos en escala local evitando la fragmentaci n La caracterizaci n territorial se orientar a identificar las zonas econ micas y ejes de desarrollo que estructuran la provincia Se identificar n las potencialidades del territorio y las restricciones que impiden su pleno aprovechamiento De las potencialidades y ejes de desarrollo se desprenden los requerimientos de infraestructura econ mica Esta es una demanda derivada de la din mica econ mico productiva Definici n de Potencialidades Recursos no utilizados o no adecuadamente utilizados El aprovechamiento o el mejor uso de los recursos puede permitir generar un producto o riqueza adicional Los recursos no son solamente naturales Se incluyen el capital social e institucional el capital humano y los servicios La jerarquizaci n de
78. ara acceder a los servicios recursos empleo informaci n y a las instancias de decisi n 36 2 D Acuerdo Nacional d cimo cuarta pol tica 109 En ese contexto el objetivo prioritario de la participaci n del Estado en la sociedad es el de promover la igualdad de oportunidades para todos los habitantes a trav s de un mayor acceso tanto a bienes p blicos como privados optimizando el uso de los recursos disponibles y concentrando su esfuerzo en actividades asociadas al desarrollo del capital humano del capital social del capital institucional y del capital f sico privado y p blico entre otros Por su parte el Programa Caminos Rurales II ha desarrollado varias iniciativas y enfoques transversales destinados a promover una mayor equidad y participaci n en las actividades de mantenimiento de los caminos rurales en los caminos de herradura en Ventana para el Desarrollo Local y en las acciones de descentralizaci n ENFOQUE DE G NERO DEL PROYECTO La perspectiva de g nero en Caminos Rurales II parte por el reconocimiento y voluntad institucionales de entender la vinculaci n entre g nero pol ticas p blicas y desarrollo y emprender a partir de este an lisis las acciones necesarias para atender los intereses y derechos diferenciados de mujeres y hombres de forma equitativa y mejorar las relaciones de g nero entre los diversos actores sociales que interact an en el programa El inter s por incorporar la perspectiva de
79. artnership with NGOs and enabling expression through open markets The participatory approaches were continued under the second phase of the project and further strengthened with the introduction of various measures identified in the context of the social assessment completed in 2000 The participatory approach envisaged would aim to 1 improve the identification of key stakeholders based on beneficiary profiles and outlining an outreach strategy when relevant ii retool the participatory mechanisms as necessary to ensure active involvement of the most vulnerable groups iii address possible issues that may arise from a planned expansion to poor areas in the Selva region and iv refine the project impact monitoring system to ensure that stakeholders participate in a systematic and organized manner in ascertaining the project outcomes through household surveys focus groups etc 2 2 Implementation Project implementation has been consistently satisfactory or highly satisfactory at both central Provias Descentralizado and local regional offices and municipalities levels Neither significant project change nor restructuring of initial project design was performed However fiscal constraints slowed down implementation and required two extensions of the closing date for a total of seventeen months to be processed Two amendments to the loan agreement were also needed to accelerate disbursements and address minor operational issues see also 2
80. as capacidades institucionales y t cnicas de los gobiernos locales v Fortalecimiento t cnico e institucional a los Gobiernos Locales IVP en gesti n vial descentralizada vi transferencia de conocimientos y resultados de su experiencia institucional como el sistema tercerizado del mantenimiento rutinario basado en micro empresas locales que son t cnica y econ micamente viables y sostenibles en la medida que los gobiernos locales y la comunidad organizada participen en la gesti n y financiamiento de los caminos En un primer momento a partir de 2002 se desarroll un conjunto de instrumentos institucionales financieros y legales denominado Cofinanciamiento con la finalidad involucrar a los gobiernos locales en el mantenimiento rutinario de los caminos vecinales rehabilitados en su jurisdicci n Este mecanismo consiste en un descuento autom tico mensual del FONCOMUN para cofinanciar los costos del mantenimiento rutinario por un monto aproximado de US 300 d lares por Kil metro a o Este aporte se operativiza mediante la suscribieron de Convenios de Participaci n Financiera para el mantenimiento vial rutinario que al principio fue entre PROVIAS RURAL y las municipalidades provinciales y distritales y actualmente es entre la municipalidad provincial con las distritales el aporte del PROVIAS DESCENTRALIZADO ahora es asumido por el Tesoro P blico Ministerio de Econom a y Finanzas MEF mediante transferencias directas a las cuen
81. as proved to be very efficient The next operation will scale up the model to the whole country and turn some PRIs into PIIs Provincial Infrastructure Institute Gender mainstreaming efforts Moderate The Decentralized Rural Transport project will keep promoting the gender might be lost after the agenda under the broader concept of Social Inclusion transference to local governments Insufficient transparency in Moderate The Decentralized Rural Transport project includes institutional strengthening local bidding endangers the activities in this specific area Provias acquired important know how and continuity of MEMV experience in transferring knowledge to municipalities However mitigating conformed under the project this risk will require a huge effort in order to train the new local governments entering the program Lack of national and local Moderate The main risk comes from a possible lack of fiscal space due to the large funds dedicated to road infrastructure projects that have recently been initiated in Peru However the rehabilitation project has beneficiated from high visibility at the national and international level and benefits from a strong commitment from the government Other donors have dedicated funds to the rural areas affected by the project and the Bank s next operation will ensure that funds are available at the national level OVERALL RISK Moderate 5 Assessment of Bank and Borrower Performance 5 1
82. been exceeded However the statistical significance of this result is low Traffic has increased by 132 and this figure is statistically significant at 10 Achievement 383 Reduced cost of freight and passenger transport services iii Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 5 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 6 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 7 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 8 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Freight 18 Passengers 78 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded The freight s figure has a low statistical significance but the passengers figure is statistically significant at 596 Achievement 120 and 52096 Number of one year equivalent seasonal unskilled jobs generated by road rehabilitation works 0 15 0 10 000 27 514 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded Achievement 275 Number of one year equivalent permanent unskilled jobs generated by road maintenance works 4 618 5 500 5 997 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded Achievement 109 Number of
83. bers performing free civil works for their communities and communities helping them in emergency situations like when rain provokes lack of transitability or when transporters inform about conditions in the road and give free rides to MEMVs Impact on Democracy In the broader context of recent laws which have increased participatory processes the project facilitated democratic practices and reduced the cost 2 ie Law in transparency and access to public information law of equity opportunities for women and men law in participative budgeting law in decentralization and municipalities law in control and citizen 91 of rural stakeholders participation through three key factors rural integration shortened distances and increased mobility alternatives Participation in Elections In all of the departments where the project was implemented participation in elections was increased by up to a 10 increase in Peru as a whole was 4 This effect is even more noticeable at the provincial with participation in the project areas being above the provincial average and in 3 cases notably above Noteworthy is the increase in female participation which reached a pick of 13 percent in one department and exceeded the increase in men s participation in all project areas Accountability of elected officials Increased revocatoria processes were observed in the poorest departments where the project was implemented One could have expected that
84. by the excellent catalytic role that Provias played to provide technical assistance to municipalities in support to the decentralization process Diversity of staff openness to innovation and rigor in the management of its monitoring and evaluation system are other positive elements to be highlighted Provias performance is also confirmed by the international and national recognition it received as well as by the awards granted by the two banks IaDB WB President Award as well as by Peru s civil society Finally the Project has been a subset of Provias overall rural transport program Using the same implementation model Provias has been seeking and obtaining other sources of funding USAID Fondo ltalo Peruano Fondo Peru Francia but also in some cases private funds such as contributions from mining enterprises to finance specific road maintenance activities to expand its interventions This is another illustration of how the model proposed by the Project has been streamlined thanks to the catalytic role of Provias Descentralizado c Justification of Rating for Overall Borrower Performance Rating Highly Satisfactory The overall Borrower performance was rated as highly satisfactory to account for the successful results achieved by the implementing agency and beyond to the positive interactions between the project and the GoP s broader agenda with regard to decentralization Another positive element is the continuity of the ru
85. capacity building has proven to be crucial to guarantee a long term impact on gender equity and on the sustainability of the gender know how Identifying female leaders and ensuring their participation in training workshops could have been further enforced Rural Roads Maintenance Micro Enterprises Rural women especially vulnerable women like widows and single mothers have little opportunities to find a job in the Peruvian rural areas Still they have to feed their children on average 3 to 7 and many times their entire family The Project through its need of intensive labor for the routine road maintenance activities offered these women an opportunity to have a job and earn a sustainable salary for their household Table 17 Gender analysis of routine maintenance tasks Tasks in the routine maintenance of rural roads Who does what Me Women e Patching x gt 2 Cleaning of platform 3 Cleaning of curbs 4 Cleaning of culverts 5 Cleaning of dips 6 Cleaning of ditches 7 Cleaning of riverbeds 8 Mending dry walls 9 Reparing amp Cleaning wood bridges 10 Removing stones from slopes 11 Rubbing and cleaning 12 Traffic signs maintenance 13 Surveillance and control At the beginning of the Project some women 4 percent became members of MEMVs mainly to replace their disabled or deceased husbands duri
86. cated to larger roads Negligible to Low Although the NMT network is little known this risk is unlikely to occur Under the Project 3 465 km of NMT tracks initial objective of 3 100km have been rehabilitated and maintained and 247 road committees have been created and now exist The mechanism adopted for rehabilitation had proven to have the lowest cost Other donors and NGOs also finance some rehabilitation works and the next project includes funds dedicated to NMTs Moreover as long a participatory prioritization planning process will be used the rural poor will be empowered and the rural poor generally give a higher priority to NMTs Lack of local counterpart funds dedicated to routine maintenance Moderate Supreme Decree No 017 2006 MTC adopted in 2006 made permanent the transfer of resources dedicated to routine maintenance from the national level to PRIs so that local funds will not be lacking Local capacity is too low and weakens future developments Moderate The project included institutional strengthening at the local level with assistance provided to Unidades Zonales PRIs and micro enterprises In addition Provias has now enough capacity to provide technical assistance at the local level and the next project includes a local institutional strengthening component Lack of institutional capacity at the national level Provias Descentralizado Negligible to Low Provias has been provided instit
87. ciadores para garantizar la sostenibilidad de la gesti n vial de los caminos rurales en el largo plazo tanto a trav s de la inversiones en la vialidad como en la apropiaci n del camino por la sociedad civil PROV AS DESCENTRALIZADO apost por un sistema de mantenimiento vial rutinario basado en Microempresas locales como un mecanismo de participaci n comunal en el mantenimiento de los caminos rurales Esta estrategia tiene m ltiples impactos positivos especialmente en la econom a local y de las comunidades m s pobres del pa s En el orden t cnico se asegura la realizaci n permanente y adecuada de las actividades necesarias para el mantenimiento y la conservaci n rutinaria de la red vial rural el uso eficaz y eficiente de los recursos asignados para tal fin as como un mayor rendimiento en las cuadrillas de trabajo todo ello con entrenamiento capacitaci n y acompa amiento permanente poniendo nfasis en los aspectos t cnicos empresariales y legales En el orden econ mico permite desarrollar mercados de trabajo en aquellos lugares donde est n poco desarrollados o no existan generando empleo directo permanente e indirecto temporal para bastos sectores de la comunidad rural El mantenimiento vial permite la reducci n de costos de transporte y tiempos de viaje el acceso y movilidad entre centros poblados el acceso a mercados y en general desarrollo de mercados con la consiguiente dinamizaci n de la econom a rural y
88. closing 66 monitors with a civil engineering background and 11 monitors with a social background were active 58 6 3 Strengthening Rural Communities Households Capacity to Create and Engage in Social and Economic Development Opportunities This activity consisted in the design and establishment of a specific instrument named Local Development Window LDW in selected poor districts with the objective of stimulating the emergence of productive activities that could spur with the improvement of road conditions Over the project s life time the LDW has intervened in 85 districts in 12 provinces chosen among the poorest in Peru Operated by CARITAS Peru the LDW identified the best productive initiative and reduced transaction costs for potential sponsors Selected initiatives were presented during project fairs ferias Between October 2001 and September 2006 the LDW identified 850 initiatives at pre feasibility stage of which 167 reached feasibility stage and 72 found a sponsor Eight regional fairs and one national one were organized allowing to leverage SDR 7 2 million of financing from various sponsors Remarkable initiatives that were supported include for example the construction of a fish farm in the district of Sauce San Martin region or the cultivation of a traditional root called Yacon in the district of Orcotuna Junin region In both cases these initiatives became viable because the improvement of transport con
89. cofinanciamiento del mantenimiento vial rutinario Actualmente los IVP que han recibido transferencias del mantenimiento rutinario realizan la gesti n del seguimiento y monitoreo al desempe o de las microempresas de mantenimiento vial y desarrollan los procesos de selecci n y contrataci n de las microempresas de acuerdo a las normas nacionales ya que ahora el costo del mantenimiento es asumido ntegramente por recursos del Estado El Decreto Supremo N 017 2006 MTC dispone la transferencia directa del a las municipalidades provinciales de los montos para el mantenimiento rutinario que eran cubiertos por el PROVIAS DESCENTRALIZADO habiendo logrado de este modo la sostenibilidad financiera de esos caminos transferidos a los gobiernos locales CON RELACI N A LOS OBJETIVOS SOCIALES Y ECON MICOS vincular el camino rural rehabilitado y mantenido con la generaci n de capacidades locales para desarrollar proyectos productivos y buscar complementariedades con otros Proyectos de infraestructura econ mica Acorde a su objetivo principal y al modelo de intervenci n innovador del PROVIAS DESCENTRALIZADO antes PROVIAS RURAL en la segunda etapa de Caminos Rurales se han desarrollado diversas actividades orientadas a vincular las intervenciones en la infraestructura vial con el desarrollo rural con enfoque territorial VENTANA DE DESARROLLO LOCAL VDL Es una propuesta de desarrollo local participativo con la poblaci n de los d
90. communities opinions on the program c Other Unintended Outcomes and Impacts positive and negative At completion a study was launched to evaluate in more detail the impact of the Project on rural institutions participatory processes and democracy A summary of this study is presented in Annex 6 Key results include e Greater participation in elections provinces where the project has been active experienced an increase in voter participation particularly for women e Greater accountability of public officials the proportion of public officials revoked revocatoria was greater in the project areas Revocatorias should not be interpreted as an indication that the project promoted local conflicts but rather as a sign of greater participation through which local stakeholders could voice their concerns and as an additional incentive for greater accountability e Emergence of new leaders In the 6 departments surveyed in the study 82 cases of micro entrepreneurs becoming local leaders were reported In one case the 30 manager of PRI became president of a regional government This illustrates how the project contributed to the emergence of new leaders and how management experience gained through the implementation of some project components was transferred to other areas of public management e Recognition of micro entrepreneurs Despite some envy because of their salaried work position micro entrepreneurs ar
91. como consecuencia el adicional de obras y mayores plazos de ejecuci n Sin embargo a pesar de esta problem tica se ha obtenido eficiencia en la ejecuci n financiera habiendo solo un 2 76 de incremento en el presupuesto de este componente producto de la diferencia de los adicionales y deductivos de 97 obra Sobre este escenario los concurrentes concordaron que este es uno de los componentes m s exitosos logrando beneficiar directa e indirectamente un aproximado de 3 500 000 habitantes producto de los caminos rehabilitados Mantenimiento de Caminos Respecto a este componente se obtiene como resultado final el mantenimiento rutinario de 104 835 Km superando en 91 la meta inicial y 8 600 Km en mantenimiento peri dico de los caminos rehabilitados sobre los 6 500 planteados como meta En el mantenimiento rutinario destacan la formaci n de microempresas de mantenimiento vial las cuales generan puestos de trabajo para los pobladores aleda ios a los caminos rehabilitados los promotores externos y monitores quienes se encargan de capacitar a los IVP y realizar el seguimiento del mantenimiento de los caminos realizado por las microempresas y el tercero la transferencia de los recursos a los Gobiernos Locales En cuanto al mantenimiento peri dico es necesario destacar que es importante su ejecuci n ya que devuelve la transitabilidad inicial a los caminos producto del desgaste propio del uso vial lo cual se trata de amilanar con el man
92. contracted by Provias Descentralizado and were responsible for the execution of the works Their contribution in labor represented 30 percent of the cost of the works Rural road committees received technical assistance from NGOs during the building period which took 4 to 6 months The project helped constitute 247 road committees with the assistance of 31 local NGOs About 500 rural communities benefited from the component The cumulated contribution of rural roads committees through their labor force has been estimated to an equivalent of US 3 9 million Rural road committees have been maintaining the improved NMT tracks Finally with the financial assistance of other donors e g French Aid Agency Provias Descentralizado has been improving NMT tracks of tourism significance An example is the 32 km track that leads to the Inca ruins of Choquequirao in Apurimac and Cusco Component 4 Provincial Road Management Pilot This component may be the most successful of all since it was initially envisaged as a pilot and became almost streamlined at the time of closing The initial objective was to 50 test an institutional model for managing the rural road network at the provincial level in which the municipal authorities of the province provincial and district municipalities will jointly assume responsibility over the development and condition of a core provincial network The component aimed at testing first in one Peruvian province Arequ
93. coordination among other rural development programs Finally by introducing local governments to the principle of network management including the informal network of non motorized tracks it would significantly improve transport services Integrating rural communities and producers to markets and business opportunities Lack of a reliable transport system reflected in high transport and transaction costs hampered the capacity of rural farmers to access markets while influencing production costs crop marketing decisions and ultimately farm income Building on a strategic partnership with civil society the project aimed to stimulate the creation of local business opportunities integrated with markets combining the provision of technical assistance to community based organizations including road committees and micro enterprises that participate in the maintenance of rehabilitated rural roads and tracks with a communication and community organization strategy to facilitate the realization of productive gains from the improvement of the rural roads network This strategy aimed to develop more formal relationships between rural producers and markets through improved access to information and organization skills and strategic partnerships Facilitating the empowerment of local organizations and vulnerable groups Lack of mobility hindered opportunities for enhancing people capabilities and collective action for mutual benefit referred to as soci
94. credit 1 0 1 2 2 1 1 3 significant at 20 percent significant at 10 percent significant at 5 percent significant at 1 percent Effects of income and poverty Evaluation shows a strong short term and significant positive impact on households income for NMT tracks On the other hand households living nearby generation 2000 roads seem to have undergone a limited reduction of their income This result should be nuanced i by the fact it is significant at only 20 percent 11 because the 2004 evaluation reported an increase in income so that the net benefit may still remain positive and iii by the fact that income from people who migrated are not taken into account In terms of composition of households income a sharp decrease in revenues from cattle breeding as main productive activity of rural households was observed As reported in the literature this diversification could be explained by the fact that households have more confidence in the future and in the sustainability of transport conditions improvement so that they invest less in buying cattle generally considered a saving behavior It also seems that the significant income increase for population benefiting from improved NMT tracks comes from a diversification of productive activities outside subsistence agriculture in petty commerce and other services In terms of impact on poverty national definition a significant short term increase of non
95. croempresas como en los comit s viales rurales con mayor nfasis en cargos de tesorera o vocal pero con posibilidades de mejorar su liderazgo y posicionamiento al interior de su organizaci n Adicionalmente se constata en ambos casos la valoraci n de la presencia de la mujer como controladora social y responsable en las tareas asignadas dentro de su organizaci n y como interlocutora con capacidad de gesti n ante la autoridad local para el visto bueno de las valorizaciones mensuales as como eficiente administradora en el cargo de tesorera capacidad desarrollada por su rol de administradora del hogar y la formaci n de nuevas lideresas comunales Todo ello con impactos en la familia principalmente en alimentaci n educaci n y mejoramiento de las condiciones de vida de los hijos e hijas a su cargo Los resultados del enfoque de g nero se aprecian en el siguiente cuadro con una participaci n del 23 de socias mujeres en las microempresas constituidas en la segunda etapa 25 de mujeres en los comit s viales de mantenimiento rutinario Adem s se realizaron 28 Talleres entre lecciones aprendidas y capacitaci n en temas de g nero con una participaci n de 650 varones y 358 mujeres en 1 008 asistentes FORMACI N DE MI CROEMPRESAS DE MANTENI MI ENTO VI AL SEGUNDA ETAPA 2001 2006 N DE SOCIOS Hombres Mujeres Estos resultados constituyen un activo que requiere ser transferido en esta nueva etapa a
96. ct iv monitor the performance of the sector and of the rural transport system in particular and compliance with those investment programs critical to improving rural transport services This component would also assist Provias in further strengthening the road maintenance system and would incorporate into the system best practices and productivity gains observed during its application under the first project establish different standards and costs in accordance with road characteristics and usage and transfer more responsibility to local governments in line with the phasing in of the maintenance co financing mechanism In addition Provias staff would receive training on areas that either demanded new skills or would receive more attention during the second phase of the program such as handling the dialogue with municipalities approaches to strengthening community organizations and gender issues This training would facilitate the accomplishment of other activities planned under the project to encourage gender equality in rights resources and voice The project would also help Provias widen its contacts with civil society and Peruvian think tanks involved in rural development research activities The workshops and surveys carried out under the project would contribute to establishing a forum where project activities and the data gathered through them could support further research activities by 10 public and or private organizations
97. d Provias monitoring database MTC s road inventory annual biannual and quarterly progress reports registry of micro enterprises contractors and consultants activity reports issued by coordinator of LDW Data collection has also been facilitated by the implementation of the Integrated System for Technical and Administrative Management SIGAT in Spanish which has been co financed by the project and which was not initially forecast in the PAD This system integrates all the various computerized information systems used by Provias Descentralizado to manage logistics staffing accounting finances disbursement budget assets management control and contracts The SIGAT is connected to the information systems used by other Peruvian institutions such as MEF SIAF or SUNAT PDT and COA Information is sorted by financing institution and is now accessible to Provias regional offices unidades zonales This system will be improved during phase III In addition to these monitoring instruments impacts have been assessed by three impact evaluation studies one conducted at mid term one at the end of the project and one first study conducted ex post at the end of phase I in 2001 The main results of this last study were that the project had a noticeable impact on transport conditions and access to social services but a limited one on unemployment and poverty alleviation This study also served as a baseline for the mid term study of phase II 2004
98. d micro enterprises created under the project would develop their entrepreneurial and organizational skills making them more competitive with greater access to a reliable cash flow the Local Development Window would also promote the emergence of productive activities and also strengthen the entrepreneurial capacity of the targeted rural areas 3 The nearly 110 provincial municipalities and their respective district municipalities which would be exposed to institutional and financial arrangements for a more cost effective management of their rural roads networks in the broader context of the decentralization reforms 1 5 Original Components The project included the six following components Component 1 Rehabilitation of Rural Roads and Connecting Primary and Secondary Roads This component aimed to finance the rehabilitation of about 3 575 km of roads in the 12 participant departments in order to improve accessibility to rural areas as well as restore operating conditions along regional economic road corridors About 3 225 km of rural roads were envisaged to be rehabilitated with a traffic pattern ranging from a few vehicles a day up to 15 20 vehicles on peak market days mostly micro buses and 3 ton trucks Primary and secondary roads that give access to the rural road systems were also to be rehabilitated and connected with markets and economic centers These were unpaved roads that carry traffic in the range of 50 to 200 vehicles per day and
99. d processes 14 reforms of the previous operation e g NMT routine maintenance and introduced new concepts or mechanisms Plan Piloto Selva provincial road institutes local development window gender action plan The first project had created a favorable environment from which the second project could benefit In particular the first project had provided strong evidence that 1 the combination of low cost rehabilitation standards with sustained and efficient routine maintenance was a cost effective solution ii force account activities were not needed and iii local governments were able to play an active role in rural roads management With the third operation scheduled to be implemented during the period 2007 2012 the Peru Rural Roads Program has demonstrated during more than a decade a remarkable capacity to constantly innovate and streamline efficient rural roads policies building on thorough evaluation of past achievements b Decentralization reforms Implementation benefited from the momentum created in Peru after 2002 by the decentralization reforms For the preparation of the Annual Transfer Plans Planes Anuales de Transferencia the GoP was looking for initiatives that were concretizing a process of transfer of responsibilities with corresponding budget resources to municipalities Initiatives aiming at strengthening the institutional capacity of sub national governments were also welcomed in order to facilitate the accr
100. d transport improved km Value quantitative 0 3 100 3 465 or Qualitative Date achieved 09 30 2001 11 30 2006 11 30 2006 commen The project end target has been exceeded incl E achievement Achievement 112 G Ratings of Project Performance in ISRs Actual No KE E DO IP Disbursements USD millions 1 08 07 2001 Satisfactory Satisfactory 0 00 2 05 28 2002 Satisfactory Satisfactory 4 53 3 11 27 2002 Satisfactory Satisfactory 6 48 4 02 26 2003 Satisfactory Satisfactory 10 40 5 05 30 2003 Satisfactory Satisfactory 12 86 6 11 13 2003 Satisfactory Satisfactory 19 15 7 05 25 2004 Satisfactory Satisfactory 23 68 8 11 29 2004 Satisfactory Satisfactory 27 16 9 04 04 2005 Satisfactory Satisfactory 30 78 10 10 27 2005 Satisfactory Satisfactory 34 99 11 06 06 2006 Satisfactory Satisfactory 42 65 12 12 04 2006 Highly Satisfactory Highly Satisfactory 48 19 H Restructuring if any Not Applicable vi 007 zd 1002 tD 9007 S zd 9007 4 rd S007 Qu E co S00z gt E r0 trooz o i co rooz tD 007 E 007 a rd 2007 vo 2 5 zd 2007 2 A T en ml suoi sn p vii 1 Project Context Development Objectives and Design 1 1 Context at Appraisal Country background The overarching objective of the Country Assistance Strategy CAS in Peru has been to support the Government of Peru in achieving economic growth and a su
101. day The incidence of poverty has varied across regions with poverty rates in the Sierra highlands and Selva jungle nearly double that of coastal regions More than half of the extremely poor population resided in the rural sierra although it had less than a quarter of the national population Indigenous people comprised an estimated 15 percent of the population but had a poverty rate of 70 percent Further reduction of rural poverty rates was constrained by a number of rural transport sector issues Lack of an effective road network in Peru had kept rural communities and the poor living in remote areas isolated and without opportunities for accessing markets jobs and socio economic services Road density in Peru was lower than in most South American countries or in countries with a similar level of development with density of 6 7 km of asphalt roads per 1000 square kilometers or just over one third of neighbors such as Chile and Brazil Peru s road network consisted of about 78 000 km with a large unknown number of unclassified tracks that connected the dispersed population to the rural road network Despite a successful rural road program implemented with the support of the WB and the IADB in the year 1995 2000 which rehabilitated 8 900 km of rural roads about 80 percent of the 47 000 km of the rural road network was still in very bad to barely acceptable condition which combined with poor maintenance practices and a lack of adequate drainag
102. de mantenimiento rutinario es de 850 00 d lares Kil metro a o dependiendo de la tipologizaci n del camino El mantenimiento vial rutinario desarrollado por PROV AS DESCENTRALIZADO descansa en cuatro ejes 27 MTC PROVIAS RURAL Manual de Operaciones del Proyecto MOP MTC Programa Caminos Rurales Manual T cnico de Mantenimiento Rutinario de Caminos Rurales A o 2000 Estudio sobre la Gesti n del Mantenimiento GEMA 6 tipos de caminos en sierra y 6 en selva MTC PROVIAS RURAL Buena Pr ctica Gubernamental de transitabilidad de los caminos rurales sostenible 388 99 a Terciarizaci n de la actividad del mantenimiento de los caminos rurales el Programa promueve y contrata a microempresas de mantenimiento vial que est n conformadas por miembros de la comunidad aleda a a los caminos rurales b Participaci n financiera de los gobiernos locales en el cofinanciamiento del mantenimiento rutinario de los caminos rurales rehabilitados para ello el Proyecto ha desarrollado el mecanismo participaci n financiera de los gobiernos locales que asegura el financiamiento del mantenimiento rutinario de las v as rurales garantizando por un lado la sostenibilidad del mantenimiento rutinario y por otro liberando de alguna manera la presi n financiera que tiene el gobierno central en la materia c Gesti n del mantenimiento desconcentrado y descentralizado el Programa desarrolla viene transfiriendo la gesti
103. ditions made access to local markets easier and more reliable In addition to promoting the spurring of productive activities the LDW has worked with municipalities to help them prepare a district development plan that are describing a strategy for the development of their territories These plans were then used by municipalities to rationalize their public expenditures and to comply with the accreditation requirements put in place by the National Decentralization Council CND in Spanish More recently the LDW started to move its planning methodology at the regional level with the preparation to the date of three provincial development plans Thus the LDW proved both to be a relevant instrument to promote rural growth and to strengthen at the same time community participation and municipalities institutional capacity An illustrative sample of projects supported by the LDW is presented on the Internet http www proviasrural gob pe 39 Annex 3 Economic and Financial Analysis The ex ante economic evaluation performed a Cost Benefit Analysis CBA of 36 sample sub projects completed under the first phase of the program using the producer s surplus approach that relates the rehabilitation and maintenance costs of a sub project with benefits in terms in increases in net agricultural and livestock production net of local consumption and production costs The ex post economic evaluation 1 reviewed the CBA and the Cost Effectiveness Analysis
104. domestic economic resources In the long term this empowerment can lead to tackle other problems like malnutrition or domestic violence 5 Better quality of works improved transparency in income management moral tidiness and hygiene within the MEMV teams As team members in the MEMVs women proved to be generally more effective in ensuring the quality of the road maintenance works They were better trusted by their male colleagues because they were perceived as being incorruptible Women were found to be more reliable in managing income because they are more transparent with accounts management and because they view corrupt practices more negatively than men Women do a better job at negotiating work certificates payments They are better organized to manage food and they do not consume 86 alcohol Technically they were more proactive in performing their work and they have been found to be more efficient than men for certain tasks e g cleaning road drainage Men stated that when women started working in their micro enterprise they quit drinking during work the number and duration of pauses diminished and micro entrepreneurs became more responsible 6 Women open the doors for the next generation Most Peruvian rural women and men who have worked in MEMV have sent their children to school to secondary school and some of them to University in far away urban centers Children whose mothers are MEMV workers dream about working when th
105. e impact on the efficiency of these activities e Finally results on decentralization and institutional strengthening have been presented with an emphasis on the incorporation of PRIs in MEF s public budget cycle and the fact that the decentralization of road routine maintenance activities have generated and increased local capacity On a more general basis it was mentioned that the second rural roads project has greatly contributed to the positive evolution at the country level of the following aspects Administrative management systems VANTEC SIGA and SIGAT 84 Interfaces with external information systems interface SIGA SIAF interface SIGAT other systems Incorporation of environmental studies in the road investment process Gender consideration and reconnaissance of the positive impact of women participation Strengthening of the road inventory notably with the introduction of GIS Support to the road classification strengthening process Contribution to the road hierarchization process Despite the successful implementation of this project some shortcomings still exist and will have to be addressed by Prov as Descentralizado in the near future with the decentralized rural transport project Provias lacks a management information system as all directorates prepare and exchange information only if asked and not on a preliminary basis Research and development activities will need to be performed a
106. e impact to reduce travel times This improvement also resulted though in a differed manner in an increase of transport use 5 However this proportion varies significantly with departamentos less than 70 percent of households could be found in the department of Ayacucho Pasco and San Martin 74 traffic and transport services frequency The traffic of lighter vehicles cars microbus which are likely to be more sensitive to road conditions was particularly increased There is also evidence that vehicle maintenance costs were reduced and therefore all transport service providers benefited from the program through a reduction of their operating costs The ultimate effect on the pricing of transport services is more mixed on the one hand transport prices for car passengers dropped in a very significant way on the other hand prices for goods transported by heavier vehicles microbus bus and trucks increased significantly The drop in car transport prices might be interpreted by the combination of decreased operating costs with increased competition arising from increased traffic For heavier vehicles bus trucks rehabilitation standards unpaved rural roads may not have been a sufficient incentive to increase traffic which could have increased competition and ultimately lead to a reduction of transport prices In addition the truck industry is well known in many countries for its sometimes monopolistic behaviors which could explai
107. e intervention of a program It consists in comparing infrastructure roads in this case with and without the intervention of a program both before and after the end of the project The difference between the differences before and after is then the only difference attributable to the project and therefore is a good measurement of the impact of the project This methodology is a second best but more practical option to assess the outcomes of a project since the ideal way is to calculate a project s impact is an experimental randomized design in which interventions are applied to random groups and withheld from the rest or the control group Any difference in the post program treatment and control groups is then attributable to the project intervention Since the project target areas have already been selected ex ante on the basis of their potential an experimental design would be biased and therefore not possible The use of the double difference methodology implies to conduct a baseline study on an ex ante basis before conducting the final impact evaluation study ex post The quality of the questionnaire is essential Similarly the control group has to be chosen carefully as it must not be linked to any aspects of the project and at the same time must share the same characteristics than the treatment group The methodology relies on the assumption that all time variant factors that differentiate the treatment and control and controlled for
108. e systems made traveling a challenge for the nearly three million people living in isolated villages in Peru s difficult mountainous terrain Under these conditions the level of motorized transport remained low with only a few vehicles venturing to reach rural communities and making the provision of transport services unreliable Vehicle ownership for most of the poor rural households remained limited to only the most affordable types of non motorized vehicles A large number of communities relied exclusively on non motorized transport for travel outside of their settlements often through neglected and unsafe paths The 1995 Rural Roads Program implemented by the Government of Peru with support from multilateral organizations aimed to upgrade the condition of the rural road network through the rehabilitation of existing infrastructure and to establish mechanisms for the maintenance of this infrastructure on a sustainable basis The Peru Rural Roads Project which constituted the first phase of the program with a WB loan of US 90 million aimed to alleviate poverty and raise living standards in the 12 departments that ranked highest in rural poverty 10 in the Sierra Ancash Apurimac Ayacucho Cajamarca Cusco Huancavelica Huanuco Junin Pasco and Puno and 2 in the Selva Madre de Dios and San Martin The project improved rural accessibility in 314 districts by rehabilitating about 11 200 km of rural roads and key secondary roads connecting
109. e valued by rural communities for their organization model and their entrepreneurial spirit MEMVs were found to play an important role for the communities in particular in cases of emergencies or to perform some voluntary civil works Some MEMVs implemented a rotation system to give employment opportunities to abandoned women or poor families thus acting as a safety net without compromising the efficiency of the road works 3 6 Summary of Findings of Beneficiary Survey and Stakeholder Workshops Three impact evaluations were performed in 2000 2004 and 2006 These evaluations were performed by two experienced Peruvian think tanks Instituto Cuanto and Grade using household surveys and a double difference comparison between rural populations living nearby rehabilitated roads and non rehabilitated roads control group Key finding are summarized in table 3 A more detailed description is presented in Annex 5 Results confirmed the significant benefits in terms of transport conditions reduced travel times reliability of transport services and use of transport services increased traffic Impact on transport fares varies between light vehicles cars for which a sharp decrease was observed and heavier vehicles e g trucks for which possible oligopolistic behaviors impeded a reduction However impact on cost is only significant for the 2000 generation of roads suggesting this is a longer term effect Better transport helped improved
110. ecinales y 2 844 Km de caminos departamentales a los gobiernos locales y regionales respectivamente y ha logrado la sostenibilidad financiera del mantenimiento rutinario de estos caminos a trav s de la participaci n financiera de las municipalidades y el cofinanciamiento del Ministerio de Econom a y Finanzas mediante transferencias directas a las municipalidades provinciales Cuadro 1 Para garantizar la sostenibilidad de la gesti n vial rural no s lo se requieren inversiones en la vialidad propiamente se requiere principalmente constituir y fortalecer capacidades locales en diversos aspectos como planificaci n organizaci n administraci n y gesti n en los diferentes espacios p blicos y privados de la sociedad civil encaminados a promover sinergias mediante la participaci n concertada de los diversos actores sociales que interact an en el mbito de intervenci n El Programa ha obtenido tambi n significativos avances en este campo aunque a n hay mucho por hacer 103 wem DER Dee ANTENIMIENTO RUTINARIO IPROVINCIALES IVP S PVP IMUNICIPALIDADES CON CAPACIDAD DE ASUMIR LA EJECUCION DE LOS COMPONENTES DEL PROGRAMA DISTRITOS PARTICIPANTES EN LA VDL La descentralizaci n de la gesti n vial rural a los Gobiernos Locales es un objetivo estrat gico del Programa orientado a asegurar la sostenibilidad de la gesti n vial rural Es un proceso gradual y progresivo que implica no s lo la transf
111. ed and is principally observed for NMT tracks A proposed interpretation is that this type of basic infrastructure can represent a dramatic improvement for the most remote rural communities from having almost no access at all to having basic access while rural roads alone may not be sufficient to make a measurable difference in terms of poverty reduction for the less remote rural communities However this impact might be enhanced if transport was combined with other types of interventions e g rural infrastructure or rural entrepreneurship programs Table 3 summary of key results from the three impact evaluations Sector Indicator 2000 and 2004 2006 evaluation evaluations Rural Roads NMT Tracks Term Effect Effect StatSign Effect Stat Sign Transportation Reduced Travel time S H H H Increased Traffic rate S H H o Decreased Fare prices S M M H H cars Decreased Freight prices S M H Increased Fk exc cars Decreased Road closure S M L H Increased Reliability transport S M M H H micro Access to public Increased School Registration M L L H boys uu H girls services secondary primary Increased Health consultations S M M M H Increased Judicial causes S M N Increased police interventions S M H 2004 Productive Increased Farmed land area M L H Reduced activities Increased Land value M N H irrigate Reduced 2 Increased Productivity M N Reduced o H Increased Livestock owne
112. editation process that had been put by MEF to condition the transfer of new responsibilities to sufficient capacity at the municipal level The Second Rural Roads Project fulfilled these two requirements and has been regularly mentioned by the GoP as one of the most successful examples of effective and efficient decentralization in Peru In return this momentum has helped Provias to advance and scale up the Provincial Road Institute model and to negotiate with the permanent transfer to municipalities of specific budget resources to finance routine road maintenance c Learning process and diversity of staff Openness to innovation has been an important factor to successful implementation Project objectives went well beyond the technical aspects of rural roads management and implementation has been characterized by an active involvement of Provias Rural now Provias Descentralizado in areas as diverse as institutional reforms linked to the decentralization process municipal finances rural development rural institutions community participation and even gender In all these areas implementation became a learning process that allowed deepening and furthering the initially envisaged reforms Thorough monitoring of results and evaluation of outcomes was see also 2 3 retrofitted into implementation and in strategies and contributed to the greatest extent to this learning process Unlike other road agencies Provias could also count o
113. eem to exist empirical evidence for that Neither there seem to exist empirical evidence on improved access to privately operated services like television post and telephone services Effects on productive activities Improved roads also have an effect on the productive activities of rural households particularly those that relate to agriculture In particular improved access impact relative prices and trading conditions Poor access generally increases the bargaining power of intermediaries who buy products or sell inputs to small producers When roads are improved small producers become closer to local markets and trading centers resulting in reduced information asymmetry on prices and increased bargaining power Ultimately these effects have been found to increase the income of rural producers Liu 2000 and Escobal 2000 These effects also tend to favor productive specialization and clustering easing the development of commercial agriculture as a substitute to low productivity subsistence agriculture Devres Inc 1980 Gannon and Liu 1997 The effect of improved roads on reduced travel times and increased travel frequency contributes to reduced post harvest losses for fragile agricultural products with greater profitability and easier access to processing plants Increased profitability combined with improved access to credit also facilitates the use of more modern technologies with an ultimate benefit in terms of productivity Biswange
114. een created compared to an initial objective of 5 500 Thanks to the gender action plan approved in June 2005 the proportion of women in micro enterprises increased from 4 percent at project start to 23 percent for the micro enterprises created under the Second Rural Roads Project Finally and although this was not an initial project objective Provias Descentralizado then Provias Rural helped transferring at the regional level the maintenance model with microenterprises Provias Rural worked with regional governments and with Provias Departamental at that time the national agency in charge of the regional road network to transfer the maintenance model that had been developed on 2 706 km of regional secondary roads that had been rehabilitated under the Rural Roads Rehabilitation and Maintenance Project This helped the preparation and implementation of another Bank financed project Regional Transport Decentralization Project which was approved in July 2005 with the objective of helping the decentralization of regional roads management to regional governments 49 Component 3 Improvement of Non Motorized Rural Transport NMT At closing the project had financed the improvement of 3 465 km of NMT tracks compared to an initial objective of 3 100 km This greater output can be explained by a lower than expected improvement cost The total network of NMT tracks in Peru is little known but based on the results of thorough inventories
115. efficiency project The results of the ex post analysis yield an economic rate of return ERR of 31 and a net present value NPV of US 64 05 million at 14 discount rate Two sensitivity cases were also performed of them lead to the same conclusions and demonstrate that the rehabilitation of rural roads component was well justified considering the actual investment costs and the updated assumptions on the producer s benefits The ex post net benefits are higher than the benefits evaluated at appraisal due to the lower actual road works costs and the higher than expected impact of the project on the area of agricultural production Table 2 summarizes the economic evaluation results Table 2 Economic Evaluation Results Ex ante Feasibility Studies Ex post Length km 1 563 984 5 018 Investment M US 20 34 16 39 64 29 Investment km US km 13 017 16 657 12 813 ERR 46 2596 24 31 NPV at 14 Discount Rate M US 12 75 6 75 64 05 NPV at 14 Discount Rate Investment 0 63 0 41 1 00 3 4 Justification of Overall Outcome Rating Rating Highly Satisfactory The project was rated highly satisfactorily for the following reasons Higher than expected project outputs km of roads and NMT tracks rehabilitated due to excellent implementing capacity of Provias Descentralizado and lower rehabilitation costs Implementation delays 17 months extension were caused by GoP s fiscal space policies and not by projec
116. eing conducted b the plan has received strong local stakeholder support with overlooking committees being created c some funds are dedicated to the plan in the next operation The decentralization process slows down or stops after several years of road management decentralization Moderate A momentum to further the decentralization process was created in 2002 and has been enforced in 2006 with the Supreme Decree No 017 2006 MTC The bank will maintain an active dialogue with the GoP through the next operation to make sure that the process doesn t stop The environmental risk becomes higher after the end of the project Negligible to Low Environmental safeguards satisfactory to the Bank have been applied by Provias for the last 11 years so that they have become part of the rural roads Peruvian culture Moreover the nature of the model developed by the Project rehabilitation of gravel roads as long as it is used limits the risks for the environment The next operation will also ensure that risks for the environment remain negligible 34 The institutional model of Negligible Dropping the model would be a huge step backward with 121 provinces now PRI created by the Project is to Low engaged in the process and 36 PRIs having reached full implementation dropped capacity and 72 basic capacity This component has probably been the most successful of the project and the PRI s model h
117. eing governed by empowered local authorities Coordination of road rehabilitation with local productive activities can stimulate development and improve the efficiency and effectiveness of the rural roads project itself In the fight against poverty road rehabilitation is generally not sufficient to overcome isolation while promoting local development Past impact evaluations have shown that significant improvement of transport conditions reduction of travel times and travel costs greater availability and reliability of transport services follow the rehabilitation of transport infrastructures However the impact on poverty reduction and local economic development takes much longer Consequently the project established an independent structure the Local Development Window LDW to help identify synergies between areas for productive growth create linkages between local service providers and coordinate access to key financial services in areas where rural transport conditions were improved The project showed that in parallel with the improvement of transport conditions that can make access to local markets easier and more reliable an implementing agency such as the LDW can promote opportunities for self employment and income generation activities for both the local and regional economy see Box 1 Box 1 Successful activities promoted by the Local Development Window LDW Since 2002 the Local Development Window LDW has intervened i
118. enefited by the project e an overall reduction of the poverty gap by 1 5 and 2 2 percentage points in areas served by the rehabilitated rural roads and non motorized tracks respectively e an increase in the number of visits to health posts and hospitals by 20 percent reflecting both greater access and consumption capacity and e a gradual diversification of the income generation structure and more dynamic labor markets in areas benefited by the project e g percentage of wage earned income time earning wage increased percentage of non agriculture income increased 1 3 Revised PDO There were no revisions to the project objectives 14 Main Beneficiaries Three main groups were identified as beneficiaries of the project 1 Rural population of 3 5 million living in the 12 departments targeted representing about 70 percent of the rural population of Peru and about 20 percent of the total In these rural communities women were expected to constitute a major beneficiary group because of expected better access to social services such as schools and hospitals and their potential involvement in road work activities 2 Small enterprises and community groups which would be formed or strengthened as a result of their involvement in the execution of the works financed by the project Workers employed by the project would improve their skills and qualifications thereby increasing their chances for employment after project completion Small firms an
119. ensure feedback from communities The preparation of the safeguard aspects for the PPS can be considered as best practice The process included the preparation of a Socio Environmental Study ESS and Action Plans by a consortia compounded by an environmental and a social firm The ESS included a socio economic assessment as well as a physical and biological evaluation while the Action Plans included Indigenous Peoples Plans an environmental protection plan and a monitoring and evaluation plan The studies included an intense participatory approach with the local communities Indigenous and settlers as well as the involved municipalities and the regional and local authorities Cultural Property Although Cultural Property Bank safeguards had not been activated at the time of appraisal three cases of works with potential impact on sites of archaeological significance were reported during implementation by Provias Descentralizado The Bank provided Provias with applicable safeguards policies These cases were dealt with according to the Peruvian national legislation on cultural property which is consistent with the Bank safeguards policy on Physical Cultural Property The cases were as follows a In Amazonas Tingo Kuelap and Leymebamba Laguna los C ndores the first one is under implementation and the second one awaits bidding Both include studies regarding archaeological monitoring and the first one has obtained the CIRA Certificate
120. ent jointly with IDB and the Bank reviewed the need to continue with the road program after completion of the project taking account of the progress made in the decentralization agenda MEF and MTC agreed that the role of the program would in the long run shift from execution to monitoring and provision of technical institutional and financial assistance for programs carried out by a diverse number of executing agencies including regional entities and municipalities addition in order to scale up in a timely manner the positive results of Second Rural Roads project the decentralized rural transport project was prepared in 2005 2006 and is scheduled to become effective in the first semester of 2007 Sustaining reforms and institutional capacity On the institutional side the project exposed local governments to organizational shortcuts based on contracting out most of the works and services to local consultants small contractors and community based organizations using work methods tailored to their capacity Early involvement of beneficiaries and the reliance on solutions well adapted to the working environment of municipalities increased capacity and built pressure on local governments for continuous road maintenance Sustainability of the project was also ensured through continuous dialogue with the Government of Peru regarding the mobilization of local resources and revenue sharing mechanisms for road maintenance thereby reinforcing the G
121. entanas de desarrollo local le dio un sentido amplio el programa para contribuir al alivio a la pobreza y permiti potenciar sus resultados Esquemas estandarizados de planeamiento ejecuci n y seguimiento de proyectos en unidades ejecutoras facilitan la implementaci n del Programa El disponer de un sistema 118 nico de planeamiento ejecuci n y seguimiento resulta en factor clave Esto permite Identificar costos reales detallar la demanda y efectuar una priorizaci n t cnica Esto facilita incorporarlos ahorros que genera una ejecuci n eficiente para aumentar los beneficios del proyecto La participaci n efectiva de los involucrados es un factor clave para el logro de resultados as como para asegurar la sostenibilidad de los mismos Su incorporaci n en los proyectos desde la identificaci n y el disef o ayudar a en forma significativa al logro del prop sito La flexibilidad en los esquemas de planeamiento permite un mayor campo de acci n para una mejor toma de decisiones lo cual efectiviza la ejecuci n de lo programado en cuanto a la variaci n de los costos plazo de la ejecuci n de las obras etc Se deben clarificar los procesos de adquisiciones y contrataciones en los Gobiernos Locales a fin de facilitar a los postores el concurso a los mismos lo cual rebajar a sustancialmente el n mero de procesos declarados desiertos El fortalecimiento de las capacidades de los institutos Viales Provinciales genera la conver
122. ento como al gobierno local IVP lo que obliga a presentar una imagen real de trabajo conciente Los mecanismos participativos que PROVIAS RURAL promueve en sus diversos componentes permite que la poblaci n local beneficiaria est informada sobre su accionar en el espacio local toma en cuenta la capacidad de organizaci n local reconoci ndola como un capital social importante y a partir de sta genera institucionalidad al promover asociaciones civiles y comit s de mejoramiento de caminos de herradura Estas asociaciones a su vez se van posicionando al interior de la localidad y se tornan especializadas por el soporte t cnico que le Proyecto les brinda EL SISTEMA INTEGRADO DE GESTI N ADMINISTRATIVA Y T CNICA Son numerosos los beneficios de haber logrado implementar este sistema paralelo a nivel de instituci n as como de usuario para facilitar el acceso a la informaci n y como herramienta importante en la gesti n del programa Se propone para una tercera operaci n implementar este sistema en los Institutos Viales provinciales con mayor capacidad instalada t cnica y profesional Para ello se prev el fortalecimiento de estas capacidades a fin de poder descentralizar este sistema y facilitar la gesti n en todo el mbito del proyecto INVERSI N En la segunda etapa 2001 2006 se estima una inversi n para el cierre por un monto de US 178 millones financiado por Bando Mundial US 48 millones el Banco Interame
123. epare local governments to manage on a sustainable basis the maintenance and upgrading of the rural road infrastructure under their jurisdiction the municipal responsibility over rural transport infrastructure had been confirmed by the recently approved Transport Law The project introduced local governments to key principles for systemic management of their rural road networks including the informal network of non motorized tracks and supported i a strong institutional strengthening component with specific targets regarding the use of more effective management structures and tools ii further deconcentration of project activities to project field units to explore arrangements for delegating responsibility through performance agreements iii a pilot on decentralized management of provincial road networks to test the use of institutional and financial models information reporting systems and appropriate mechanisms for the flow of funds and iv a graduation policy to encourage the transfer of direct responsibility to local governments under which municipalities that have assimilated the policies and practices supported by the project would become eligible for direct execution of project activities in subsequent phases of the rural roads program Rationale for Bank assistance The Bank s key role in designing the Rural Roads Rehabilitation and Maintenance Program had been well appreciated by the Borrower Bank involvement brought several
124. equipa La Convenci n and Cotabambas As the LDW proved to be a relevant instrument to promote rural growth while strengthening community participation and municipalities institutional capacity its scaling up has been proposed for the implementation of the follow up project Women s involvement in road project design and maintenance activities can result in social outcomes commonly ignored by traditional road upgrading systems The project paid particular attention to the role of women requiring at least 10 percent of the micro enterprise members and at least 20 percent of road committee members to be women Women s participation showed that women are keen to provide feedback on how lack of transport services affects their day to day lifestyles It also provided them with economic opportunities linked to road maintenance activities that would otherwise not have been available to them 2496 of the micro entrepreneurs are now women In direct response to the transport needs expressed by women phase 2 of the program supported improvements not only to the roads connecting to the communities but also to non motorized tracks which are most often used by women and are commonly ignored by road upgrading In beneficiary communities there was greater openness to women using health centers and going to markets Overall the participation of women in the project facilitated the acquisition of new skills knowledge and confidence with a social and personal
125. eration 2000 generation 2004 Amazonas 0 0 Ancash 127 194 Apurimac 122 207 Arequipa 0 68 94 116 Cajamarca 302 108 Cuzco 126 261 Huancavelica 103 197 Huanuco 81 182 Jun n 36 257 La Libertad 0 0 Lima 0 0 Madre de Dios 49 46 Moquegua 0 0 Pasco 35 94 Piura 0 0 Puno 55 145 San Mart n 88 90 TOTAL 1218 1965 GRADE classified the various effects of the program depending not only on the intensity of the effect but also on its statistical significance standard deviation This is an important improvement to the methodology used by Instituto Cuanto for the first two impact evaluations since in these the intensity only was considered Finally it should be noted that some of the lost households of generations 2000 and 2004 are likely to have migrated to other areas The program may have indirectly contributed to their migration by facilitating transport and some of these households may have seen their situation improved as a result of their migration to more productive areas Since these households could not be surveyed these effects are not considered in the current evaluation and as a result program s overall benefits may be underestimated Results from the 3 impact evaluation Impacts with statistical significance at least at 20 percent observed between 2004 and 2006 include the following Effects on transport conditions Results confirmed that the improvement of road conditions had a significant and immediat
126. erencia de recursos financieros y funciones sino sobre todo pasa tambi n por desarrollar transferir y fortalecer capacidades locales capital humano t cnicas e institucionales y desarrollar modelos de gesti n vial institucional eficientes que les permitan asumir con responsabilidad y eficiencia la gesti n de los caminos rurales de su jurisdicci n garantizando la transitabilidad de los caminos rehabilitados En materia de fortalecimiento institucional se han logrado avances importantes como el cofinanciamiento y financiamiento del mantenimiento rutinario por parte de los Gobiernos Locales la transferencia de los caminos 13 869 64 Km incluyendo Gobiernos Locales Regionales Provias Nacional e IVP Arequipa la formaci n e implementaci n de los IVP 50 implementados y 81 en proceso de implementaci n la formulaci n de planes viales provinciales 95 al termino de la segunda etapa 98 municipalidades con capacidad para asumir la ejecuci n de los componentes del programa 81 distritos participantes de la Ventana Local de Desarrollo el desarrollo del enfoque de genero en el mbito del proyecto y la formaci n y capacitaci n de 182 microempresas para el mantenimiento rutinario Es de vital importancia para la sostenibilidad de nuestra labor continuar con el fortalecimiento de las capacidades de los gobiernos locales para la preservaci n de los caminos rehabilitados y de la gesti n vial realizada en esta segunda etapa para aseg
127. es impactos viales econ micos y sociales Esta intervenci n que constituy una respuesta apropiada a la situaci n descrita permiti la rehabilitaci n y el mantenimiento rutinario de m s de 11 mil Km de caminos vecinales y mejoramiento de m s de 3 mil Km de caminos de herradura por un monto total de US 264 millones Dos aspectos adicionales son necesarios mencionar sobre esta etapa por un lado que las intervenciones en la vialidad rural no respondieron a demandas dispersas y aisladas sino que se planificaron en Talleres Participativos de Priorizaci n con intervenci n de Alcaldes Provinciales y Distritales y teniendo como unidad m nima de planificaci n la provincia por otro lado con el fin de preservar las inversiones realizadas el Programa desarroll inmediatamente despu s de la rehabilitaci n en el marco del concepto del ciclo del proyecto un sistema de mantenimiento rutinario sostenible con la participaci n de la comunidad organizada que vive a lo largo del camino Los efectos de esta intervenci n fueron la constataci n de una reducci n de costos de operaci n y transacci n generaci n de empleo mejoramiento del acceso a los servicios sociales b sicos 24 En t rminos generales el sistema Vial del pa s est clasificada en tres categor as La Red Primaria o Nacional Red Secundaria o Departamental y la Red Terciaria Red Vial Vecinal Rural 25 Instituto Cu nto Evaluaci n econ mica soc
128. esarrollo de las capacidades t cnicas e institucionales de los Gobiernos Locales en el marco de un modelo de intervenci n con enfoques innovadores que vinculan las intervenciones en la vialidad con el desarrollo rural y son adem s participativos inclusivos y sostenibles Su intervenci n en materia vial se vio complementa con acciones de fortalecimiento institucional y de promoci n de actividades econ mico productivas poniendo especial nfasis en 1 sostenibilidad del mantenimiento el desarrollo institucional y la transferencia de la gesti n vial rural a los Gobiernos Locales Esta etapa se caracteriza por una ptima ejecuci n f sica y financiera sobrepasando las metas trazadas inicialmente en la mayor a de los componentes as como de sustanciales logros e impactos viales socio econ micos y ambientales con los consiguientes reconocimientos al haberse conseguido el objetivo principal previsto Sobre todo se ha logrado una mejora sustancial en la vida de los pobladores gracias a la intervenci n en los caminos rurales rehabilitaci n mejoramiento y mantenimiento que ha devuelto la transitabilidad de las v as ha mejorado la accesibilidad de la poblaci n a servicios sociales b sicos ha mejorado la integraci n y articulaci n a mercados y ha vinculado la vialidad con el desarrollo rural bajo un enfoque territorial OBJETIVOS ESPEC FICOS Viales y Funcionales mejorar y consolidar la transitabilidad de los caminos rurales
129. esults of the ex ante analysis yields an economic rate of return ERR of 25 and a net present value NPV of US 20 27 million at 10 discount rate which is equivalent to US 12 75 million at 14 discount rate which is the prevailing discount rate in Peru during the project implementation period The ex ante evaluation considered the following assumptions a an increase of 7 5 in the number of livestock to take place in year 3 though maintaining the same level of net benefits per unit of livestock b an increase of 5 096 to take place in year 3 in the overall agricultural area for key agricultural products in the area of influence of the sub projects c a decrease of 5 0 in the costs of production for either agricultural or livestock related products to take place in year 3 d no adjustments were made to the agricultural yields or to farm prices e average rehabilitation cost of US 13 017 per km f average routine maintenance cost of US 1 200 per km per year g sample network length of 1 563 km for a total investment of US 20 34 million and h discount rate of 1046 that was the prevailing discount rate in Peru at appraisal At appraisal the cost effectiveness of the improvement of non motorized rural transport tracks was not quantified in numerical terms Feasibility Reports Economic Evaluation The Regional Governments prepared Participatory Regional Plans to identify the sub projects investments to could
130. ey are older especially girls who talk about working outside the domestic sphere B Barriers overcome when mainstreaming gender in the Project 1 The machismo behavior of some Peruvian men prevented women from leaving their historically and socially assigned function and from interacting with other community members In many cases this was a key barrier that prevented women from working in a male dominated environment such as road maintenance Many women did not see working in a MEMV as an opportunity to get a sustainable income and consequently a better life for them and their families Furthermore husbands were afraid of losing their bread winner role 2 Community s critics affected negatively women s willing to work on MEMV The decency of women who work among men or who perform a male job is questioned within the community Women determination to work in the MEMV conflicted with the traditions of their communities and they were discouraged to break the conventional unwritten rules 3 Women Illiteracy The low education of Peruvian rural women limited their access to salaried jobs and decision making levels For that reason the Project did not include literacy as a criterion for women to become micro entrepreneurs 4 Women conditions in the MEMV were more challenging than for men 1 before joining the team in the morning women had to complete domestic tasks such as preparing the daily food for the family 11 technical
131. grassroots groups and key external actors it was agreed that the LDW would be coordinated by an NGO with an established reputation in working with communities and micro enterprises in rural areas and capable of operating in a highly decentralized manner In this context CARITAS Peru was selected based on its ability to perform the role of coordinator with its 48 diocesan organizations spread over the country and for its experience in participatory social and needs assessments and the structuring of local development initiatives 1 6 Other significant changes None 2 Key Factors Affecting Implementation and Outcomes 2 1 Project Preparation Design and Quality at Entry The project was built on the successful experience and as a continuation of the first rural roads project taking into consideration the experience developed by the Bank to improve rural road access while strengthening the framework for decentralization and for rural road maintenance in particular Lessons from Bank experience on rural roads Review of past Bank experience on rural roads projects demonstrated that the principal problems in achieving sustainable results had been institutional weaknesses and inadequate coordination leading to delays in implementation and incomplete execution of the works inadequate monitoring of results weak sustainability as the necessary institutional and financial frameworks were rarely addressed Bank wide experience resulted in the follo
132. he cost effectiveness of the project was satisfactory with cost per beneficiary averages well below the limit of US 100 per person defined at appraisal 66 Annex 4 a Task Team members Names Lending Jose Luis Irigoyen Rodolfo Huici Aurelio Menendez Elizabeth Dasso Francisco Wulff David Varela Paul Sisk Colin Gannon Carlos Emanuel Gladys Sakata Vera Vicentini Jacob Greenstein Alfonso Tique Supervision ICR Keisgner De Jesus Alfaro Rodrigo Archondo Callao Julie Babinard Luz Caballero Maria Elizabeth Dasso Nicolas Drossos Melanie Glass Rodolfo Huici Patricia Mc Kenzie Aurelio Menendez Isabella Micali Drossos Juan Manuel Lea o Xiomara A Morel Miroslava Nevo Nicolas Peltier Thiberge Juan D Quintero Luis M Schwarz Nicolas Serrie Vera Vicentini Evelyn Villatoro Marco Antonio Zambrano Alonso Zarzar Casis Title Lead Highway Engineer Principal Economist Sr Transport Economist Sr Social Development Specialist Operations Specialist Sr Counsel Sr FM Specialist Transport Economist Procurement Specialist Program Assistant Environmental Specialist Highway Engineer Highway Engineer Sr Procurement Spec Highway engineer Economist Consultant Sr Social Development amp Civil Consultant Junior Professional Associate Principal Economist Sr Financial Management Specialist Lead Transport Economist Sr Counsel Senior Road Engineer Senior Finance Officer Seni
133. he program totaling 1 563 km and US 20 34 million of investment costs representing 2096 of the investments and the number of kilometers rehabilitated of this component The results of the ex ante analysis yields an economic rate of return ERR of 25 and a net present value NPV of US 20 27 million at 10 discount rate which is equivalent to US 12 75 million at 14 discount rate which is the prevailing discount rate in Peru during the project implementation period Economic evaluation in feasibility reports During project implementation feasibility studies were performed at the sub project level for each identified road investment in order to quantify the rehabilitation needs of the project road and evaluate its economic or social justification Non motorized tracks and rural roads with traffic less than 15 AADT were subject to CEA and rural roads with more than 15 AADT were subject to CBA using the producer s surplus approach A sample of 124 rural roads feasibility studies was reviewed totaling 2 128 km 42 of the total program of 5 018 km of which 47 feasibility studies 984 km included CBA and 77 feasibility studies 1 144 km included CEA For the 47 roads subject to a CBA the total NPV is US 6 75 million at 14 discount rate and the ERR is 23 696 These CBA evaluations were done adopting the producer s surplus approach by comparing the project costs and economic benefits derived from increase in agricultural and livestock net
134. he sixth step was the establishment of the provincial investment plan for road infrastructure which ranked all investments by road type of road rural or NMT and type of investment rehabilitation periodic or routine maintenance This investment plan constituted the second main output of the participatory provincial road plan this ranking set the order of all investments which were to be made in the province Moreover suggestions for financing the proposed investments had to be included in the plan The last and seventh step was the monitoring and evaluation of the participatory plan with a proposed list of monitoring and evaluation indicators The preparation of these plans also included the constitution of road inventories These inventories were prepared based on registered roads assessed through field surveys In two provinces Provias Descentralizado piloted the preparation of a more comprehensive inventory with the use of Geographic Information System GIS technologies see Box 5 These technologies though being more costly than the traditional road surveys proved to bring an added value in terms of updating the knowledge of the actual network These benefits justified the scaling up of this approach in the follow on project Decentralized Rural Transport Project 57 Box 5 Outputs from the GIS Based Road Inventory Pilot When preparing Participatory Provincial Road Plans many consultants noticed that most of rural roads were n
135. i n de mujeres en estas actividades alcanzando al final un 24 y 25 respectivamente siendo a la fecha el nico proyecto de infraestructura vial que utiliza este enfoque como estrategia para promover la equidad e inclusi n en el medio rural Una de las primeras acciones fue la revisi n y redisef o de la gu a de procedimientos para conformar microempresas de mantenimiento vial con la finalidad de superar las restricciones a la participaci n de las mujeres rurales en estas MEMV y tambi n en el mejoramiento de caminos de herradura Otra acci n fue la ejecuci n de Talleres de Sensibilizaci n y Capacitaci n en temas de g nero dirigido a dos grupos de actores diferenciados los Operadores del Programa y los Operadores Viales Rurales Asimismo se realiz el acompa amiento a los equipos de Promoci n Social en la aplicaci n de la perspectiva de g nero estableciendo Puntos Focales de G nero Banco Mundial CENTRO 38 Primera Versi n de Desarrollo de Acciones de G nero elaborada el2002 en coordinaci n con el Banco Mundial Se estableci entre otros Talleres de Sensibilizaci n y Capacitaci n en g nero 110 Asistentes T cnicos de Operaciones y el monitoreo y evaluaci n trimestral de los indicadores de g nero La aplicaci n del enfoque de g nero muestra tambi n evidencias de un proceso de empoderamiento de la mujer en este espacio tradicionalmente masculino posicion ndola en espacios de decisi n tanto en las mi
136. ial ambiental e institucional del Programa de Caminos Rurales Junio 2000 26 Los caminos de herradura constituyen las ltimas venas del sistema vial que permiten integrar a los caser os y reas remotas con las carreteras vecinales departamentales nacionales 94 desarrollo de los mercados dinamizaci n de las econom as locales y regionales y finalmente un notorio incremento en el nivel de vida de la poblaci n rural Sobre la base de esta experiencia se contrat un segundo pr stamo con los Bancos BID y BIRF para el financiamiento de la segunda etapa de Caminos Rurales 2001 2006 cuyo prop sito no s lo fue consolidar las acciones iniciadas durante la primera etapa en cuanto a mejorar la transitabilidad de los caminos rurales sino que adem s su objetivo principal estuvo orientado a contribuir a la superaci n de la pobreza y el desarrollo rural y mejorar el nivel de vida de las comunidades rurales en el Per mediante la consolidaci n de la transitabilidad de las v as rurales con participaci n financiera e institucional de los gobiernos locales participaci n del sector p blico privado y sociedad civil y con equidad de g nero Caminos Rurales II ha sido una respuesta t cnica econ mica y pol tica para encarar los niveles de pobreza que se presentan con mayor nfasis en las zonas rurales buscando mejorar los niveles de vida de la poblaci n rural impulsando la descentralizaci n de la gesti n vial el d
137. ically designed for that purpose All key performance The IaDB agreed to reduce their disbursement ratio from 50 to 30 percent provided they would finance 100 percent of expenditures without taxes during the period between the Bank s closing date and their own closing date scheduled 6 months later Representatives from China and Georgia had expressed strong interest in attending the seminar 17 indicators are comprehensive and closely linked to these four main project objectives The impact evaluation study which had been conducted at the end of the first phase of the project helped the team to a design realistic project objectives by estimating the main expected effects of this type of project b set realistic target values for the indicators by assessing the impacts of phase I The PAD also includes a number of comprehensive output indicators linked to each component of the project The design of these indicators and their respective target values has also been facilitated by the impact evaluation study of phase I Data collection has been conducted as initially forecasted in the PAD A mix of monitoring instruments has been used in parallel with regular impact evaluation studies to assess the effects of the project and the values of the different key performance indicators and output and impact outcome indicators at every stage of the project For outputs the following tools have been used Provias project information system an
138. icroempresas de Mantenimiento 429 de la primera etapa y 191 de la segunda Empleo permanente Directo 6 138 personas Empleo temporal Directo para m s de 49 000 personas Obras Creaci n de 352 Proyectos Productivos para mas de 1 000 personas Capitalizaci n de contratistas locales Reducci n de costos de transporte de carga y pasajeros en algunos casos al 20 En algunos caminos vecinales de Apurimac Ayacucho y Cajamarca se han observado incrementos de tr fico vehicular mayores al 100 luego de ser rehabilitados La presencia permanente de los microempresarios dan Confiabilidad ha las comunidades rurales y p blico en general sobre la transitabilidad Disminuci n en tiempo de viaje Cuadro 2 Conceptos Antes PCR 2000 2004 Muestra 4 de 18 Muestra Testigos Muestra Testigos Muestra Testigos Minutos promedio de recorrido caminos 155 4 79 9 81 4 59 3 72 4 86 6 Veh culos promedio a la semana 24 5 33 2 46 0 43 2 57 6 45 8 Promedio personas solicitaron consultas en dependencias salud 1568 1765 1947 2060 2424 1929 Personas en pobreza M todo del gasto 70 5 67 3 70 3 71 5 LECCIONES APRENDIDAS gt Programas de rehabilitaci n de caminos rurales no son solamente programas de ejecuciones de obras Involucran una serie de modificaciones en relaciones econ micas sociales y pol ticas que deben ser integradas a la evaluaci n de los programas El hecho de considerar esquemas como las v
139. ifically addressed women s transport needs in rural areas i women s allocation of time is now more efficient as they are freed from wasting their daily time in long trips 11 the cleaner and safer tracks encourage them to travel as new opportunities of mobility arise like selling agricultural products further as well as giving birth in health centers and hospitals and obtaining the birth certificate for further name registration avoiding insalubrious conditions iii women s attendance and participation in community meetings or assemblies is more Millennium Development Goal 3 Promote gender equality and empower women 10 Undocumented people continue being a problem in Peru About 25 96 of the population is undocumented because limited access to name registration institutional birth delivery among other reasons Undocumented people are rural indigenous illiterate and women 28 frequent allowing women s voices to be better heard in decision making for community development e Fostering access to resources The Project has contributed to overcoming women s constrained access to economic resources and to income generating activities and has removed obstacles to wage employment opportunities Forty three percent of women reported the Project enabled them to obtain additional income Part of this additional income came from road maintenance and from LDW activities This effect was higher than expected and the participation of women
140. ii performed representative ex post CBA and CEA evaluations considering actual road works costs and results of the latest impact evaluation study prepared during the implementation of the project Economic evaluation framework An economic evaluation framework for all road investments made by the project was defined at appraisal This framework considers the stage of development of the sub project area of influence 1 sub projects in a first stage of development in areas with a high percentage of poverty serving a social function and typically with very low traffic less than 15 AADT or only non motorized traffic tracks are analyzed on the basis of social considerations cost effectiveness approach ii sub projects in intermediate stage of development typically with traffic between 15 and 30 AADT and serving agricultural and livestock production are evaluated using the producers surplus approach and iii sub projects at a more advanced stage of development typically with high long distance traffic higher than 30 AADT and serving an economic function are evaluated based on benefits to road user costs compared to the rehabilitation and maintenance costs following the application of the Roads Economic Decision Model RED Ex ante economic evaluation The ex ante economic evaluation of the rehabilitation of rural roads was done evaluating with the producer s surplus approach 36 sample sub projects completed under the first phase of t
141. imiento rutinario peri dico y de emergencia de la red vial de la provincia Aunque Caminos Rurales II inici el proceso de descentralizaci n de la gesti n vial de los caminos vecinales a los Gobiernos Locales con el Proyecto Piloto de Gesti n Vial Provincial de Arequipa a trav s del Instituto Vial Provincial Municipal el 2001 este proceso se vio respaldado desde el 2002 a partir de la decisi n pol tica de impulsar la Descentralizaci n del Estado Actualmente han sido creados 134 Institutos Viales Provinciales en igual n mero de provincias de los cuales 50 IVP se encuentran en condici n de implementados y el resto en proceso de implementaci n y se han elaborado 124 Planes Viales Provinciales Participativos Aunque la instituci n municipal afronta todav a debilidades en la gesti n institucional el actual proceso de descentralizaci n de las funciones del Estado apunta a la reestructuraci n de este Estado dando cabida a demandas de autonom a y liderazgo planteadas por la sociedad civil lo que implica un proceso de reingenier a de las instituciones particularmente de la instituci n municipal orientada al logro de una mayor eficiencia y una participaci n m s equitativa en los procesos de desarrollo local que adem s favorezca y permita la participaci n estrecha de la ciudadan a en los asuntos de la gesti n p blica En ese contexto se ha realizado la transferencia de m s de 13 870 Km de caminos v
142. impact for both women and their families 1 men and women had a social a more balanced distribution of domestic work at home and in the community ii women improved their self image and increased their income iii women s participation contributed to the emergence of a new image of gender relations in the social and cultural life of the communities Women are now more active in community decision making and accessing leadership positions in local organizations Strong cooperation between development organizations such as the Bank and the IaDB can be a factor of success The experience of the Peru Rural Roads program illustrated how two multilateral entities were able to work together under a framework that emphasizes the adding up of the comparative value of the two organizations teams P The preparation of territorial development plans was a condition for municipalities to be accredited by the National Decentralization Council CND in Spanish and be eligible for increased intergovernmental transfers 42 and an open approach to the discussion of topics and the resolution of conflicts The added value of the project also came from the interest of all stakeholders the two banks and Provias in harmonization policies 7 Comments on Issues Raised by Borrower Implementing Agencies Partners a Borrower implementing agencies In its comments Prov as Descentralizado underlined the very positive impacts that the project and more broadly
143. in micro enterprises and LDW activities exceeded initial targets 1 for MEMV the participation of women reached 24 percent compared to an initial target of 10 percent 11 for LDW projects women s participation reached 40 percent compared to an initial target of 30 percent Women empowerment The LDW implemented a specific mechanism Rapid Rural to help ensure the inclusiveness of participatory processes particularly with regard to the gender perspective The LDW design also took into account women s needs which resulted in the strong participation of women in the identification and implementation of entrepreneurial activities as well as in rural roads committees and cooperatives In the case of the rural roads committees women participated actively in the identification of NMT tracks to be improved In the case of the MEMV many women managed payment certificates and treasury accounts Lifting barriers Rural communities idiosyncrasy women s shame modesty and lack of confidence ignorance of women s opinions gender unawareness machismo behavior were among other initial barriers to the mainstreaming of gender in this project However the Project has prompted a social change where local communities and husbands are pleased with their working women and where working women feel proud of their job and become empowered to transmit their feelings beliefs and ideas in public spheres Finally Provias unlike many tradition
144. increased between 2004 and 2006 from 84 to 94 percent 7 percentage points accounting for the counterfactual while primary school enrollment for girls increased from 93 to 99 percent 5 percentage points accounting for the counterfactual However no impact on access to education services was observed in the case of NMT tracks The evaluation also showed several positive effects on employment and income generating activities per capita monthly income was found to increase by 25 6 percent over the period 2004 2006 in the areas benefiting from NMT tracks This income effect is likely to be linked to the improved productivity of the agriculture sector in NMT areas itself caused by the increased availability of informal labor force unpaid family workers The cultivated area was also found to have increased by 22 percent in the areas benefiting from improved rural roads although this did not seem to translate in greater household income On the other hand the ultimate effect of project interventions on poverty is mixed Between 2004 and 2006 poverty decreased from 83 1 to 74 4 percent in areas benefiting from improved NMT tracks most likely as a result of increased agricultural productivity and improved access to local markets This illustrates how simple solutions to bring or improve access can help relieve bottlenecks to poverty alleviation in the most remote rural areas of Peru However this poverty effect is not significant in the case of rural
145. involving PRIs were then financed under component 1 In a Peruvian context in which the decentralization reforms gained significant momentum after 2002 the institutional model of the PRI had proved to be a very effective tool to empower municipalities and overcome the institutional fragmentation of the municipal sector through the constitution of effective partnership between district and provincial 51 municipalities The follow on Bank financed operation Decentralized Rural Transport Project approved on December 2006 will build on these achievements by 1 scaling up to the entire country the PRI model and 2 experimenting in selected provinces a transition from Provincial Road Institutes toward Provincial Infrastructure Institutes in order to foster greater complementarities across the rural infrastructure sectors Component 5 River Transport Improvement Pilot This pilot Plan Piloto Selva or PPS in Spanish aimed at developing a comprehensive institutional technical safeguards model to improve rural transport customized to the context of the Peruvian Selva and in doing so improve access to services such as education and health for the Indigenous communities and poor settlers One related initial objective was to assess the relevance and modalities of improving river based transport which is the most important transport mode in the Amazon region To this end the PPS included 1 implementation of small inter modal
146. ipa and then in at least 12 provinces an innovative fully decentralized institutional model named Provincial Road Institute PRI At closing 36 PRIs had been created and had reached full implementation capacity of which 26 were the most advanced 72 had reached basic institutional capacity and 13 were in creation In total 121 provinces i e the entirety of project area were engaged at various stages of implementation in the creation of a PRI Box 3 The Provincial Road Institute of Yungay example of a very advanced PRI The PRI of Yungay created in 2002 gathers in one single institution the provincial government of Yungay and the 7 local governments of the districts that constitute the province This institute is responsible for 1 developing managing and updating the provincial road plan 11 planning and managing the provincial rural road network and iii financing the routine maintenance of the 186 km of rural roads which have been rehabilitated by the former Provias Rural this transfer was made through two supreme decrees in 2004 and 2006 To achieve its objectives the PRI has signed agreements with each of the 4 districts concerned by the rehabilitation works and has a budget of 640 000 soles approximately US 194 000 with 60 coming from the province and 40 from the districts Part of the funds comes from the national government and is channeled through the province and the districts ordinary resources tran
147. ipate actively in the decision making processes of their communities their auto esteem is increased and they gain respect in public spaces where new opportunities can emerge for them 2 Women gain power and prestige within their communities and their families which helps breaking up socio historical stereotypes 3 Working in the road maintenance teams allowed women to earn an income and become better integrated in the formal economy 4 Attending trainings and capacity building events allowed women to have access to technology and know how 5 Women became watchdog for the administration and improvement of rural roads Women were found to care more about money and efficient use of resources and many times they were assigned treasury responsibilities 42 percent of female entrepreneurs were treasurers In addition some women were in charge of bringing the work certificates to local government for payment Before showing these certificates women also ensured that the quality of the works was up to the agreed technical standards Women gained trust among their colleagues by doing a reliable job in managing funds and they gained respect by motivating the team to achieve quality in performing road maintenance works 88 6 Women participation both as members and as workers in the Rural Roads Committees guaranteed that the socio economic impact resulted in a better quality of life for their families and their communities 7 Management
148. ise their strategy is generally to increase savings in one way or another Chen and Ravallion 2003 In Peru the initial benefits prior to 2000 of the rural roads program principally resulted in an increase of cattle which was interpreted as a saving strategy Escobal and Ponce 2002 Effects on migration Rural roads improvement modifies the migration behaviors of rural households Hettige 2006 The effect on permanent migration is ambiguous on the one end improved transport conditions facilitate exploring other areas and therefore provide incentives for temporal or permanent migration On the other end improved transport conditions improve rural welfare and rural urban linkages which could reduce the incentives for permanent migration Finally improved access facilitate the flow of information between migrated and their relatives and families which could result in the migration of those There are little studies in the literature about the effect of rural roads programs on migration Improvement of transport conditions between producing areas and markets has been found to have a limited impact on migration from rural to urban areas Devres Inc 1980 Effects on gender Few rural roads programs have included the gender dimension in their strategy The Peru rural roads program gave the opportunity to poor rural women to express their transport needs in participatory workshops resulting in the inclusion of NMT tracks in the program
149. istritos rurales pobres articulados a un eje vial rehabilitado y mantenido por microempresarios locales que cuentan con potencialidades de recursos productivos y capacidades humanas para identificar planificar gestionar y conducir actividades econ mico productivas rentables y sostenibles Ventana para el Desarrollo Local se propone lo siguiente a Contribuir al desarrollo econ mico del sector rural del pa s y en particular de los mbitos distritales articulados por ejes viales rehabilitados y mantenidos por Caminos Rurales y las municipalidades distritales y provinciales en especial mediante la coordinaci n de esfuerzos recursos y capacidades institucionales para impulsar una din mica econ mica sostenida en el mbito rural tal que favorezcan los procesos de descentralizaci n y de integraci n de dichos mbitos a la econom a nacional b Contribuir con la generaci n de sinergias interinstitucionales entre las entidades p blicas y privadas del pa s vinculadas al desarrollo rural potenciando sus acciones y sus servicios e intercambiando experiencias para optimizar el impacto de sus intervenciones en el mbito rural Impulsar la creaci n y la implementaci n de mecanismos giles para articular y asignar recursos econ micos financieros tecnol gicos y humanos para el desarrollo y ejecuci n 106 de proyectos productivos en el marco de priorizaci n definida por los planes de desarrollo distrital concertado de distri
150. itional stereotype of giving more value to physical work than to the quality of the work and consequently underestimating women tasks over men s Adjusting parameters to measure the performance of road maintenance activities taking more into account quality standards could have provided more evidence of the added value brought by women participation in MEMVs On average Peruvian women earn 23 percent less than men with the same level of education and experience Unlike in other activities female workers from the MEMV received the same salaries as men Mainstreaming Gender in the transport agency structure The socio cultural stereotypes and technical specifications associate the infrastructure sector and in particular the transport sector and its roads to an environment merely masculine At project start Provias staff regardless of whether they were women or men or whether they were technical or administrative staff was not conscious of the differences between men and women needs nor about the benefits of a gender action plan The inclusion of the gender perspective in the agency was one of the keys for success of the Project Gender related activities were conducted in order to generate gender awareness among the staff 80 percent of the personnel of the unidades zonales regional offices attended the gender awareness workshops 30 percent at the headquarters in Lima where a specific session was organized for the board of directo
151. ive of scaling up These mechanisms matched the Toledo administration s strong priorities in terms of decentralization e The use of participatory events in order to get a better understanding of the rural transport needs of poor rural communities and vulnerable groups e g women e Additional innovations to explore rural transport needs in other environment e g Plan Piloto Selva or to increase social benefits e g gender action plan e An excellent cooperation was also established with the IaDB during this preparation process b Quality of Supervision Rating Highly Satisfactory The quality of supervision is rated as highly satisfactory The joint WB IaDB project performed 2 or 3 supervision missions per year most of which included field visits together with Provias as well as extensive discussions with beneficiaries and key local stakeholders to get exposure to key issues The excellent cooperation between the two banks despite occasional divergence on implementation policies allowed for mixed skill supervision teams and cost sharing Combination of efforts from the Bank and IaDB sides coupled together with the specific contributions of a multidisciplinary supervision team involving environmentalists social development specialists consultants gender impact analysis contributed to the project s success As part of the supervision effort the two banks actively encouraged the exchange of views with think tanks and NGOs be
152. ject would qualify globally under the national public investment system SNIP and that individual assessment would not be necessary 16 related to the management within the Ministry of Transport and Communications MTC of either the indebtedness ceiling as in 2003 and 2004 or the counterpart funds in 2005 granted by MEF As a consequence a disbursement gap appeared at the end of 2003 and widened in 2004 and 2005 During the same period Provias had a pipeline of investment and sufficient processing capacity to absorb much higher levels of resources Disbursement finally caught up in 2006 as a result of a number of corrective actions agreed between Provias MEF the IDB and the Bank These include 1 the preparation by MEF of a multi annual disbursement schedule for 2005 2009 including the 2 Rural Roads Project as well as the follow on operation 2 the processing of an amendment to the Loan Agreement increasing the Bank disbursement ratio for works from 50 to 70 percent 3 the release by MEF of additional counterpart funds in the last year of implementation and 4 intensified activities by Provias in 2006 order to absorb the additional resources Key factors having a mixed effect on project implementation included 2 3 Political transition The project was prepared during the transition between the Fujimori Paniagua and Toledo administrations Activities were mostly implemented under the Toledo administration with the excep
153. l tico social econ mico cultural administrativo y financiero Promueve la igualdad de oportunidades para el acceso a niveles mayores de desarrollo humano en cada mbito y la relaci n Estado y Sociedad basada en la participaci n y concertaci n en la gesti n de gobierno destacando como uno de los objetivos a nivel social de la descentralizaci n es la Participaci n ciudadana en todas sus formas de organizaci n y control social El control social o vigilancia social es una forma de participaci n que involucra a la sociedad civil a trav s de sus organizaciones sociales en fiscalizar y controlar las maneras de c mo se ejerce el poder p blico el acceso a los recursos el cumplimiento de sus obligaciones y desempe o de la gesti n con la finalidad de proponer cambios que favorezcan el mayor desarrollo de la poblaci n Una de las formas de ejercer ciudadan a es vigilando desempe os y cumplimiento de metas sobre los bienes y servicios p blicos As siendo las labores de mantenimiento vial rutinario un servicio sobre un bien p blico como son las carreteras stas son y deben ser objeto de fiscalizaci n tanto al interior de la propia organizaci n como por la colectividad usuaria Con este prop sito dentro de las actividades de mantenimiento se se ala la de control y vigilancia al cumplimiento de las tareas establecidas t cnicamente en las condiciones contractuales a cargo de los las monitores viales que se traduce en la p
154. l haber contado con otras fuentes financieras dando lugar a logros adicionales importantes orientados a potenciar las intervenciones en la vialidad rural como se muestra en el siguiente cuadro 96 RESULTADO FINAL ESPERADO EJECUTADO ATEGORIA 1 i i CATEGORIA 1 Unidad de medida 2001 ABRIL 2007 A Inversi n Al Rehabilitaci n caminos rurales y secundarios Rehabilitaci n caminos vecinales Km Rehabilitaci n caminos secundarios Km Mantenimiento peri dico Km Mantenimiento rutinario Km Mejoramiento caminos de herradura Km Piloto de gesti n vial provincial Rehabilitaci n caminos vecinales Km Supervisi n Km Mantenimiento caminos vecinales Km Estudios de caminos vecinales Km Piloto de transporte multimodal Estudios de caminos vecinales Km Estudios de caminos herradura Km Rehabilitaci n caminos vecinales Km Mejoramiento caminos de herradura Km Embarcaderos Unidad Estudios complementarios EISAR PDPI SEM Estudios B Estudios y Supervisi n Estudios de caminos vecinales Estudios de caminos herradura Supervisi n C Fortalecimiento institucional C1 Desarrollo de MEMV MEMV 120 182 15296 Se incluyen todos los contratos se tiene 810 km en ejecuci n se prev concluiran en Junio Estudios de Caminos Vecinales Se ha tenido un significativo logro en estudios superando el 262 de ejecuci n en caminos vecinales y 16 en caminos de herradura lo cual significa un mayor n mero de obras
155. las potencialidades proporciona criterios para priorizar los proyectos de infraestructura econ mica Los productos a obtener 1 Caracterizaci n y zonificaci n de territorios provinciales 11 Mapa de potencialidades jerarquizadas La priorizaci n y programaci n de inversiones resulta de comparar la demanda de infraestructura econ mica y la oferta existente en el mbito provincial gt El PIEP establece una priorizaci n intersectorial de proyectos gt La prioridad de los proyectos en funci n de la jerarquizaci n de potencialidades y las condiciones sociales existentes en cada provincia La poblaci n organizada y los Sectores participar n en los procesos de priorizaci n de inversiones y en la revisi n de la consistencia t cnica de los proyectos seleccionados Producto a obtener Programa de Inversiones en Infraestructura Econ mica Provincial ENFOQUES TRANSVERSALES Nuestro pa s cuenta con potencialidades y fortalezas expresadas b sicamente en sus recursos naturales y humanos sin embargo la pobreza y exclusi n social e inequidad persisten en nuestra sociedad y se manifiestan de diversas formas como la inequidad de g nero que se entrelaza con otras formas de discriminaci n y exclusi n profundizando las desigualdades sociales existentes siendo m s vulnerables las mujeres ni as adolescentes campesinas adultas mayores produciendo brechas y disparidades entre mujeres y hombres en cuanto a oportunidades p
156. le project design allowed Provias Descentralizado to adapt to the evolving needs of rural stakeholders e g the decentralization reforms facilitated the co financing of road maintenance activities Provias Descentralizado proved to be an efficient institution opened to innovation and eager to learning by doing This institutional leadership played an important role in project s success Through the new operation it should be furthered in the context of the decentralization reforms and Provias should manage its already engaged transition from an executing agency toward a regulatory entity This will require in particular the strengthening of technical aspects such as road rehabilitation norms and road life cycle management Strong coordination between the two banks brought added value to project design and supervision particularly with regard to the introduction of new concepts and technical arrangements This coordination was well appreciated by the Peruvian counterparts This coordination could have been furthered in the area of procurement where the IaDB felt that more flexibility could have been granted to Provias in order to customize processes to the specificities of rural areas Other partners and stakeholders e g NGOs private sector civil society No comments were formally received from other partners and stakeholders Nevertheless positive feedbacks were received at multiple occasions during implementation particularly in 20
157. level through the design and implementation of inclusive participatory mechanisms talleres de priorizaci n local development window and institutions rural roads committees MEMV that empowered rural stakeholders and better aligned rural transport interventions to their actual needs Regarding participatory processes a shift was observed during project implementation During the first phase the emphasis was on a more direct participation with the involvement of the possible beneficiaries population themselves As the project progressed along with the deepening of the decentralization agenda in Peru and the creation of decentralized units PRIs and responsibilities the participation shifted upwards to the legitimate representative bodies which started to take over the participatory processes in brief an increase in the institutionalization of the rural roads sector led to a decrease in the formal participatory processes At particular junctures the older participatory approaches were used again perhaps as a way to validate the legitimate decisions done by the relevant governmental entities in the form of mesas and other initiatives e g workshops undertaken by Provias in the visits to communities There were also other indirect mechanisms chiefly through the groups of young engineers road monitors in charge of the supervision of the micro enterprises These groups constituted an informal channel for transmitting
158. ll integrated rural roads network can count on rehabilitation works followed by periodic and routine maintenance activities e The impacts of NMTs have been enormous the project not only contributed to improve their transitability but also contributed to include the most vulnerable and excluded parts of the rural population by directly involving them in the participatory planning processes To this extent the Comit s Viales Rurales constitute a very powerful integration tool which increased the sense of ownership by local populations with regard to NMTs e One of the most positive impacts of the project is the improvement of the local capacity which has been achieved through the co financing of routine maintenance the constitution of PRIs the implementation of the participatory provincial road plans the LDW and the constitution of micro enterprises e One of the main lessons learned is that a rural roads program is not only a series of works but also has to include a number of components that could bring added value and improve the socio economic conditions of the targeted populations To 43 b this extent the participation of the local population at all stages of the project is key to increase impacts and to ensure the sustainability of the investments Cofinanciers The IaDB sent comments highlighting the very positive experience of the project particularly with regard to the following issues see Annex 8 c Flexib
159. m its expertise and qualified human resources Increased transparency in the use of resources As a result of the project mayors and their team started providing more information to local stakeholders about accounts status and resource use Some municipalities invited MEMV to be part of participatory budget sessions or to Local Coordination Councils Transparent bidding processes were implemented improving efficiency and reducing discretionary behaviors Predictable contractual relations are highly regarded by MEMV because after the transfer of responsibility to local governments and PRIs their sustainability depends on the efficiency and fairness of these procurement processes Consejos de Coordinaci n Local CCL local councils representing civil society organizations in the participating processes to reach agreements with the governing team The CCL represents entrepreneurs unions farmers women youth indigenous businessmen and community based organizations 93 Annex 7 Summary of Borrower s ICR ANTECEDENTES Seg n cifras oficiales a finales de 1995 el Sistema Vial del pa s se encontraba conformado por un total de 78 043 Km de los cuales 46 909 Km 60 96 correspond a a la red vial vecinal constituida por las v as de car cter local que unen a poblaciones pequef as entre s aunque se estima que la longitud real ser a mucho mayor debido a la din mica constante en ese nivel Esta red de caminos vecinales se
160. m per hour on non motorized tracks Table 5 Road condition impact Travel Times minutes Months With Roads Closures Rural Roads Tracks Rural Roads Before Road Works 102 157 1 9 After Road Works 72 66 1 7 Difference 31 91 0 2 Percent 96 3096 5896 11 The impact study shows that the total motorized traffic on rural roads has increased substantially with the project investments The weekly total motorized traffic on rural roads increased by 87 table below Table 6 Motorized traffic impact Cars Micro Bus Bus Truck Total Before Road Works 29 0 14 8 1 6 9 9 55 3 After Road Works 59 7 23 8 3 5 16 4 103 4 Difference 31 9 2 7 48 Percent 106 61 119 66 87 The study shows an impact of the project on the agricultural area and the number of livestock but a negligible impact on the production costs The study shows that the cultivated surface at area of influence of rural road projects increased by 22 at 10 significance level and the number of livestock increased by 796 and the production cost increased by 1 both without a high statistical significance table 7 Table 7 Producer s surplus impact Producer s Surplus Impact Agricultural Number Production Area Livestock Costs Hectares Hectare year Before Road Works 0 9 43 0 905 2 After Road Works 1 1 46 1 918 6 Difference 0 2 3 1 13 4 Percent 96 2296 7
161. ma ha cambiado de manera favorable ya que foma parte importante de nuestra instituci n Se ha logrado ejecutar el 100 de lasobras preservando los ecosistemas y coordinando con el INC Incorporaci n de un buen numero de profesionales a la instituci n considerar un m nimo de 30 de la presencia femenina en mantenimiento rutinario VDL y mejora miento de caminos de herra dura En la 3ra Etapa se replicar s las experiencias obtenidas buscando innovaciones para una mejor preservaci n del medio ambiente Se ha confimado el buen desempe o de la mujeren las distintastareasen lasque participan se espera promover mejor su participaci n Se utilizan Metodolog as algo obsoletas para desamollarestos inventarios viales m todo manual Se ha desamollado una Metodolog a para el leva nta miento de las principales caracter sticas de la red vial mediante GPS Desarrollar Sistema para manejaruna base de datos GIS Se identific a trav s de los Planes Viales que mas del 50 de los caminos vecinales identificados en la red vial no se encuentra codificados porel Desa mollar metodolog a en coordinaci n con la DGCF para crear un Sistema Nacional de Codificaci n y Registro de Caminos SINAC REC Implementaci n del Sistema de Codificaci n y Registro de caminosen Gob Locales IMPACTOS DEL PROGRAMA Estudios de alrededor de 2000 hogares y complementariamente otr
162. me or rather non extreme poverty Gender A detailed gender assessment is presented in Annex 6 Project objectives were in line with the current World Bank gender action plan Achievements illustrate how intensifying gender mainstreaming in this particular rural transport operation has resulted in improving women s access to product and labor markets The project also ascertained how the transport sector can contribute to the achievement of the MDG3 by developing women s empowerment and promoting gender equity The project epitomized with successful gender oriented actions that women are a driving force in poverty reduction as illustrated by the key role they played in the LDW activities and that eluding gender concerns in transport policies and projects might constitute a missed opportunity to involve women as potential contributors to economic growth Access The 2005 poverty assessment for Peru argued that social mobility and opportunities depended on improved access The project made two important contributions in improving access for rural women e Providing physical access Small rural infrastructure interventions have impacted the multi task burden of rural women by smoothing the opportunity cost of their time and increasing their mobility choices Seventy seven percent of surveyed women confirmed they traveled more and further and 67 percent felt they traveled more safely The rehabilitation of the NMT tracks mostly used by women spec
163. met a sub project had then to be analyzed following any of the other approaches as listed below Sub projects with more advanced stage of development typically with high long distance traffic higher than 30 AADT and serving an economic function are evaluated based on benefits to road user costs compared to the rehabilitation and maintenance costs following the application of the Roads Economic Decision Model RED This methodology is applied to segments of primary and secondary network that have been identified as critical to allow connection with or among networks of rural roads The RED model performs the economic evaluation of road investment options using the consumer s surplus approach Sub project in intermediate stage of development typically with traffic between 15 and 30 AADT and serving agricultural and livestock production are evaluated using the producers surplus approach This methodology entails the definition of certain assumptions about future increases in agricultural and livestock production and productivity as a consequence of the rehabilitation of the roads 60 The ex ante economic evaluation of the rehabilitation of rural roads was done evaluating with the producer s surplus approach 36 sample sub projects completed under the first phase of the program totaling 1 563 km and US 20 34 million of investment costs representing 2046 of the investments and the number of kilometers rehabilitated of this component The r
164. mitations impede a strict comparison between the results obtained from the three evaluations However they illustrate the learning process through which Provias Descentralizado has been constantly improving the evaluation methodology applied to assess its programs For the follow on project Decentralized Rural Transport project it is envisaged to continue refining this methodology To this end a partnership with the Bank research department DEC was constituted 83 Annex 6 Stakeholder Workshop Report and Results Stakeholder Workshop A stakeholder workshop has been organized by Prov as Descentralizado in Lima on March 13 2007 The goal of this event chaired by the executive director of Provias and attended by Provias s staff provincial mayors PRIs managers micro entrepreneurs representatives of associations helped by the LDW as well as representatives of the laDB and the World Bank was to present the main results achieved by the project and its different components and the lessons learned for the future Different presentations were made starting with a general one presenting the project as a whole followed by more specific ones presenting the results of the different components of the project road rehabilitation and periodic maintenance road routine maintenance Local Development Window river transport improvement pilot institutional strengthening and support to the decentralization process e Regarding road rehabilita
165. mpact on transport conditions and costs Improved roads save tires reduce vehicle maintenance and make travels faster Lucas Davis and Rikard 1996 In Peru these cumulated costs were found to represent up to 60 percent of passengers and goods total travel costs Ordinola 1990 In addition lesser accidents have been reported on improved roads In rural areas the most important benefit comes from ensuring all weather access since in the absence of a sound road rehabilitation and maintenance program roads become impassable in the rainy season Ensuring all weather access is generally a major objective of rural roads programs e g Levy 2004 for the Moroccan experience The ultimate effect on the pricing of transport services depends on the market structure of transport operators Decreased operating costs may increase competition among transport services providers However in certain cases increased demand for transport services may reduce the effect of increased competition on pricing Effects on access to public services Improved roads lead to reduced travel time to get to markets and public services education health justice and security In Morocco school attendance is higher in areas where transport conditions have been improved particularly for girls Levy 2004 This gender benefit can be explained by the fact that girls and their parents are more sensitive to increased security associated with better transport conditions In Gh
166. mployment in rural areas and c strengthen local institutional capacity to manage rural roads on a sustainable basis and launch community based development initiatives Revised Project Development Objectives as approved by original approving authority None PDO Indicator s Original Target Formally Actual Value ndicator Baseline Value Values from Revised Achieved at approval Target Completion or documents Values Target Years Indicator 1 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 2 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 3 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 4 Beneficiaries in the project area who are interlinked by a reliable and affordable transportation system million people 0 3 5 million 3 5 million 09 30 2001 11 30 2006 11 30 2006 The project end target had been met the rural population of the 12 departments where the project has been active amounts to 3 5 million Decreased travel time to markets and district centers after rehabilitation of project road 0 40 53 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded Achievement 132 Increased availability of freight and passenger transport services volume 0 30 115 09 30 2001 11 30 2006 11 30 2006 The project end target has
167. n 85 districts in the 12 poorest provinces of Peru identifying the best productive initiatives while reducing transaction costs for potential sponsors Selected initiatives were presented during project fairs ferias Between October 2001 and September 2006 and under the active management of CARITAS the LDW identified 850 initiatives at pre feasibility stage of which 167 reached feasibility stage and 72 found a sponsor Eight regional fairs and one national one were organized leveraging SDR 7 2 million of financing from various sponsors The Sweet Hope for the Poor or Yacon production project in the Jun n Department Selected as one of the activities to be promoted by the LDW the project supported the cultivation as well as commercialization for both local and world markets of a root called Yacon At risk of extinction the crop had traditionally been used for its natural medical virtues since the period of the Inca civilization The project managed by an association of producers benefited 40 families living in the district of Orcotuna Jun n Department Fish farms in Sauce San Mart n Department The community of Sauce San Mart n Department identified through the LDW the start up financial resources necessary for the development of tilapia fish farms Road access between the Lake of Sauce and the provincial market of Tarapoto prevented the community from taking advantage of the economic potential of the lake In addition to road
168. n a diverse staff constituted from not only engineers but also economists and social scientists Such diversity contributed to the strengthening of an institutional culture and vision that goes well beyond roads and facilitated the establishment of cooperation with other strategic partners Decentralized Rural Transport Project approved by the World Bank Board on December 19 2006 Decreto Supremo No 017 2006 MTC 15 Table 1 Composition of Provias staff Description Classification Total Professionals Assistants and technical staff Executive Direction 14 14 28 Institutional Control 7 3 10 Administration Department 28 10 38 Planning and Budget Department 12 4 16 Legal Department 7 3 10 Planning Department 45 1 46 Department of Promotion Decentralization 15 5 20 Maintenance Department 13 6 19 Unidades Zonales 70 21 91 Total 211 67 278 Source Provias Descentralizado d Strategic alliances Implementation has been facilitated by the capacity of Provias Descentralizado to establish alliances with strategic partners A very important partner has been MEF through which the streamlining of economic evaluation procedures for individual road investments and the permanent transfer to municipalities of specific resources for routine road maintenance was particularly achieved Other key strategic partners include municipalities Unlike other central agencies which have reluc
169. n del mantenimiento de los caminos vecinales a los gobiernos locales desde el 2003 Se ha promovido la creaci n de una institucionalidad en el seno de las municipalidades para que se encarguen de la gesti n vial de los caminos rurales el Instituto Vial Provincial IVP d Transparencia en el uso de recursos y rendici n de cuentas a trav s de la participaci n de los alcaldes y autoridades comunales en cada una de las etapas del proceso de rehabilitaci n y mantenimiento as como en el proceso de transferencia de la gesti n vial rural se generaron mecanismos eficientes de transparencia y rendici n de cuentas En el futuro ser conveniente incorporar en el directorio de los IVP a representantes de los usuarios de las v as rurales ii El Mantenimiento Peri dico efectuado dentro de un criterio tambi n preventivo est destinado a reponer el desgaste propio del uso de la v a al t rmino del periodo de vida til de la rehabilitaci n teniendo como objetivo evitar mayores deterioros debido a una prolongada exposici n al tr nsito vehicular y a las acciones del clima PROVIAS DESCENTRALIZADO en el marco del enfoque participativo ha ejecutado parte de este tipo de inversiones con la participaci n de Municipalidades Provinciales mediante Convenios otra parte se ejecut a trav s de empresas contratistas El mantenimiento peri dico se ha realizado a trav s de empresas contratistas a un costo aproximado de 2 700 00 d lares
170. n often are not aware of because they think it is linked to their condition as women The traditional responsibilities of Peruvian rural women are multiple ranging from managing households caring for children and elderly working at home carrying water or woods or attending the mass They need to balance their time between a variety of activities more 85 than men do Whenever women need to travel they have to free up some time by leaving apart other responsibilities which might be more valuable to them to their relatives or to their community As a result they tend to limit their mobility to the domestic space The Project has reduced women transport constrains by means of interventions in rural roads which has allowed them to free some time that they used in particular to engage in income generating activities and participation processes 2 Access and Inclusion The Project contributed to ensuring women s access to resources education employment markets and trade administrative centers public services and consultations and to decision making processes In addition children school attendance has increased and mothers were found to be able to take their children to health centers more easily The Project also facilitated access of pregnant women to hospitals where they could give birth in safer conditions Women working in the MEMVs could earn an income allowing them to use public transport Besides other social and economic problem
171. n why the reduction of operating costs was not transferred to users of transport services The net benefit for rural communities living nearby roads rehabilitated under the program may still be positive since the bulk of traffic increase comes from cars for which transport costs have decreased significantly Table 10 key effects on transport conditions double difference percent Effect Generation Generation 2004 2000 Total Rural Roads Tracks Travel times 12 53 30 58 o Traffic Cars 132 106 Microbus 52 61 Bus 185 119 Truck 31 66 Transport services frequency Cars 115 2 Microbus 138 51 163 92 Truck 93 78 Transport prices for passengers Cars 78 13 Microbus 22 14 Bus 31 104 Truck 61 24 Transport prices for goods Cars 18 15 Microbus 121 e 3 Bus 114 23 Truck 386 e 102 Vehicle maintenance costs 44 26 0 significant at 20 percent significant at 10 percent significant at 5 percent significant at 1 percent Effects on access to social services Results confirmed the effect of improved transport conditions on improving access to education and health services Primary school enrollment rose significantly in the case of roads rehabilitated before 2003 A similar 75 effect was observed for secondary schools in the case of roads rehabilitated between 2004 and 2006 Important gender differences were also reported a ve
172. nados del proceso de desarrollo social y econ mico del pa s con esp ritu de trabajo y responsabilidad que tienen en la microempresa una oportunidad para generar un ingreso con los consiguientes efectos en el acceso a la educaci n y salud principalmente mejorando las condiciones de vida de las poblaciones campesinas y rurales Esta estrategia participativa permite tambi n eliminar los posibles intermediarios del servicio garantizando as en forma directa y estable una remuneraci n por el trabajo que se realiza con lo que se busca en resumen elevar el nivel de vida de los asociados y de sus familias al mejorar sus condiciones alimentar as de vivienda de seguridad social y educaci n Todos estos efectos constituyen la raz n del por qu hacer el mantenimiento vial rutinario empleando procesos participativos mediante microempresas conformadas por pobladores de la zona aunque existen retos por resolver Dado que la participaci n ciudadana como expresi n del ejercicio de un derecho y un deber constituye un mecanismo estrat gico para lograr un mayor bienestar y desarrollo de la poblaci n y es un elemento clave del empoderamiento de la ciudadan a las Asociaciones Civiles de mantenimiento vial se constituyen en agentes de desarrollo local y contribuyen al empoderamiento de sus miembros ya que Son entidades jur dicas con representatividad local y capacidad de gesti n Poseen capacidades t cnicas en labores de
173. nance under the follow on project second phase The road Cusco Coorca Totora is a good example of the complementarities of the two projects This 30 km road located in the district of Cusco province and department of Cusco had been rehabilitated in 1996 Coorca the micro enterprise in charge of the routine maintenance of the road had been created the same year It employs 3 people on a permanent basis This rural road received periodic maintenance in 2001 under the second phase of the program for a total cost of 107 000 soles approximately US 32 000 The financing for routine maintenance was transferred in 2006 to the corresponding local governments by supreme decree N 017 2006 MTC This rural road will receive another periodic maintenance under the next phase of the program Decentralized Rural Transport Project The combination of efficient and well planned routine and periodic maintenance activities should allow extending the life cycle of this gravel road i e the delay between two rehabilitations to more than 15 years This example illustrates how well maintained low cost gravel roads can constitute a sound and sustainable alternative to more expensive technical options such as paving Source Provias Descentralizado Micro enterprises helped creating employment opportunities for poor people from rural communities living nearby the rehabilitated roads At closing 5 997 permanent unqualified employment opportunities had b
174. nd to date only one research on rural roads stabilizers has been done some regions provincial corridors are not well articulated with regional corridors Some confusion still exists regarding the definition of the beginning of a rural road Finally the main results of the first two impact evaluation studies performed in 2000 and 2004 were also presented to the different stakeholders and proper dissemination has been performed Specific impacts which are more detailed in this report have been emphasized the positive impact of the project on travel time and costs employment and access to social services and economic and development opportunities This workshop contributed to the dissemination of the results of the second rural road project stakeholders agreed with the positive impacts of this project on the rural areas where it has been implemented More importantly a broad consensus exists on the various principles of the project and the positive impact it can produce road rehabilitation with low cost standards followed by proper maintenance delivered by micro enterprises participatory planning processes decentralization of maintenance and planning complementarities of these road investments with initiatives like the LDW need to adapt the project to the specificities of the selva region Gender Assessment A Advantages of mainstreaming gender in the Project Time saving Travel time represents a burden that wome
175. nent provided local governments and communities with a tool to assist them in the formulation of coherent programs for the management and maintenance of village level infrastructure and improvement of transport technology To this end this component was to finance 1 technical assistance for village level infrastructure management Participant communities would be a determinant in the selection planning implementation and financing of the proposed works The project would continue relying on NGOs with an established reputation in the area to design organize the community into road committees and supervise the works District authorities would oversee the programs and organize at least twice a year faenas comunales to maintain the improved paths ii physical works aimed at removing unsafe spots and other bottlenecks constraining the use of the intermediate means of transport and facilities aimed at improving rural transport services and conditions including tambos for people to rest and keep safe animals and goods during long journeys The project was to finance 70 percent of the total cost estimated by Provias for the proposed works based on standard designs and unit costs This was to fully cover the cost of materials equipment and skilled labor while part of the unskilled labor would be contributed by the community It was anticipated that the project would have a positive indirect impact on making rural transport more efficient and aff
176. ng seasonal situations in cases when men migrated to get better salaries or when they had specific administrative skills The affirmative actions integrated in the MEMV Operational Manual dissemination of information targeting women quotas gender awareness workshops etc helped reaching 24 percent of women participation 89 Understanding barriers to women inclusion in the MEMV Road works generally constitute a male environment both because of safety reasons and because it requires a physical effort associated to masculinity Besides the idiosyncrasy of the communities and individuals of the areas where the MEMV were created prevented women from performing these masculine responsibilities and from working together with men in an open space like a road Moreover most husbands were reluctant to authorize their wives to work in MEMV as men are supposed to be the breadwinner for the families and both men and women were afraid about what others might think of them Whenever women are asked about their feelings at the time they started working at the MEMV all of them answered the same they felt embarrassed Following a period of adaptation to the team and work environment women felt capable of executing all the different tasks in the MEMV although they recognized that some of the tasks required a physical strength One of the concepts included in the workshops was the perception of quality of the works This was important to avoid the trad
177. nivel de vida y bienestar de sus familias Por otra parte la comunidad organizada representada a trav s del Comit Vial Rural CVR al participar desde la planificaci n de la intervenci n y luego como contratista de la obra se apropia totalmente de los objetivos del proyecto aportando la contrapartida local a n cuando es el sector m s pobre y aislado de la poblaci n En la segunda etapa se desarroll el Piloto de transporte intermodal Ucayali del cual se presentan los siguientes alcances e Trabajo en forma coordinada entre Gobierno Regional Gobiernos Locales y comunidades nativas e Empoderamiento de las autoridades y comunidades con los caminos rehabilitados e Innovaci n en el dise o para caminos de veh culos menores e Menor ejecuci n de Obras Cambios inesperados del cauce de los r os incide en cronograma de actividades f sicos y financieros A Dificultades en los contratos de estudios CON RELACI N A LOS OBJETIVOS INSTITUCIONALES transferir la gesti n de los caminos rurales a los gobiernos locales previo desarrollo institucional y fortalecimiento de sus capacidades para lograr una gesti n eficiente y sostenible La descentralizaci n de la gesti n vial se enmarca en la Visi n institucional de PROV AS DESCENTRALIZADO que describe una red vial rural transitable e integrada a la red departamental y nacional bajo responsabilidad de la gesti n por parte de los gobiernos locales y el desarrollo soci
178. nnex 6 4 Assessment of Risk to Development Outcome Rating Moderate This part assesses the risk that development outcomes would not be maintained during the remaining useful life of the project which will be characterized by the next rural roads project The request by Government for the third phase to consolidate and extend the activities started under this project shows its strong commitment and provides a guarantee that the development outcomes will be maintained and strengthened Risk Risk rating Mitigation measures to take into account the risks likelihood of occurrence and possible impacts The model developed by the Moderate At the local level information and successful results have been highly Project gravel roads routine maintenance by micro enterprises participatory planning is rejected at the local or national level disseminated in particular the fact that this model is the most cost efficient and that satisfactory feedback from rural communities is highly positive The next project will also contribute to the model s sustainability by including dissemination activities in one of the components At the national level the model had been fully adopted by Provias Rural and has inspired the design of the Regional Transport Decentralization project co financed by the Bank and the IDB 33 NMTs no longer considered as one of the priorities and all national and local efforts are dedi
179. nstituto Vial Provincial como la elaboraci n del Plan Vial Provincial Participativo se realizan mediante procesos participativos con liderazgo de los Alcaldes de la provincia y los miembros del Consejo de Coordinaci n Local Provincial El Instituto Vial Provincial IVP creado por Ordenanza Municipal es una instituci n descentralizada de las municipalidades distritales y provincial con personer a jur dica y autonom a autorizada por su Estatuto y dem s normas legales que le es aplicable Es responsable no s lo del mantenimiento de los caminos rehabilitados o construidos sino tambi n de la ejecuci n de obras de la planificaci n vial de la gesti n para el financiamiento de las inversiones viales y de las actividades de seguimiento y evaluaci n de las acciones realizadas en materia vial El cuenta con un Comit Directivo presidido por el Alcalde Provincial e integrado por todos los Alcaldes Distritales de la provincia como m xima instancia de decisi n adem s tiene una 34 m Cumplimiento ordenado de requisitos previos gt Ley Org nica de Municipalidades N 27972 Art 98 establece que el Concejo de Coordinaci n Local provincial est integrado en un 40 96 por la sociedad civil adem s de los Alcaldes Provincial y Distritales 102 Gerencia General como autoridad ejecutiva y administrativa un Jefe de Operaciones responsable de las actividades t cnicas operativas dentro de las cuales se encuentra el manten
180. nt at 10 percent This decrease seemed equally distributed between non extreme and extreme poor However the statistical significance of this last observation is low These results suggest that the actual effect of the project on rural poverty was different than initially expected NMT tracks interventions are likely to have had a greater than 27 anticipated effect On the other hand rural roads investments were not found to have a significant impact at least over project lifetime This does not diminish the relevance of rural roads programs as an important element of development strategies for rural areas but it suggests that they must be combined with other types of interventions e g in rural infrastructure or through the local development window in order to enhance impact A threshold based interpretation further discussed in Annex 5 is that simple interventions like NMT tracks can represent a major improvement for the most rural communities by making a difference between having no access at all and having basic access and be sufficient to help relieve key bottlenecks to some income generating activities On the other hand rural roads improvement alone may generally not be sufficient to alleviate rural poverty although they can make an important contribution to facilitate access to social services and to diversify the productive base Finally no conclusions could be drawn about whether the greatest project impact was on extre
181. nt of rural road programs setting goals and time frames for transferring responsibility to other participant provinces and ultimately overseeing the performance of rural road systems and the local agencies that manage them Component 5 River Transport Improvement Pilot This pilot aimed to develop a strategic framework for improving rural accessibility in the Selva region and thereby enable sustainable social and economic development in these areas The pilot sought to ascertain the set of technical institutional social environmental and economic guidelines needed for putting in place an effective inter modal transportation system capable of 1 addressing the current accessibility constraints faced by the impoverished communities living along or near the rivers in terms of access to basic services regional markets income earning activities ii averting the potential direct or indirect negative impacts induced by such system on the fragile ecosystems of the Peruvian Amazonia and iii assisting local governments in creating economic opportunities that could lead to a more sustainable and poverty reducing development of these areas The pilot was to be carried out in a purposely limited area in just three locations along the Ucayali river between Pucallpa and Atalaya Masisea Bolognesi Nueva Italia and Nueva Requena the latter actually along the Aguaytia river and entailed 1 completion of environmental social and economic impact asse
182. nte seleccionados desarrollen pr cticas pre profesionales por un periodo de 6 a 12 meses 100 En cuanto al mejoramiento de caminos de herradura ste consiste en trabajos de remoci n de obst culos o restricciones y otras limitaciones para el uso adecuado de los caminos de herradura as como la ampliaci n de la plataforma construcci n de obras de arte y peque os tambos miradores para la utilizaci n de medios de transporte no motorizados como peatonal bicicletas triciclos carretas y animales de carga La comunidad beneficiaria aporta con el 30 del costo total mediante mano de obra no calificada y o materiales de la zona Se ejecuta mediante un Comit Vial Rural que representa la comunidad organizada con asesoramiento t cnico de una Organizaci n No Gubernamental ONG que opera en el medio promoviendo el desarrollo rural El costo del mejoramiento de caminos de herradura es aproximadamente 2 150 00 d lares americanos que incluye estudios y ejecuci n de obras Los impactos sociales del mejoramiento de caminos de herradura son enormes no s lo contribuyen a una transitabilidad m s segura sino que sta est dirigida especialmente a los sectores m s vulnerables de la poblaci n y por ende excluidas como las ancianas y ancianos ni os y ni as mujeres rurales Adem s la incorporaci n de las mujeres como obreras del mejoramiento del camino y con salarios en planilla las empodera e incide a n temporalmente en el
183. o econ mico de las poblaciones de sus mbitos jurisdiccionales y en su objetivo principal de contribuir a la superaci n de la pobreza y el desarrollo rural mediante la consolidaci n de la transitabilidad de la red vial con participaci n financiera e institucional de los gobiernos locales La descentralizaci n de las funciones del Estado entre stos el Ministerio de Transportes y Comunicaciones y particularmente PROVIAS DESCENTRALIZADO est relacionada con las WLos caminos de herradura son considerados como el eslab n final de la red vial rural que proporciona movilidad y accesibilidad a los m s pobres 101 demandas de la poblaci n y la voluntad pol tica del propio Estado de comprometer a la poblaci n organizada y a sus autoridades y l deres a asumir sus responsabilidades en los espacios donde residen Las Disposiciones Complementarias y Finales de la Ley de Bases de la Descentralizaci n dispusieron que a partir del ejercicio 2003 se iniciaba la transferencia a los gobiernos regionales y locales de los programas sociales de lucha contra la pobreza y los proyectos de inversi n e infraestructura productiva de alcance regional en funci n de las capacidades de gesti n de cada gobierno regional o local disponiendo a la vez la conducci n del proceso por el Consejo Nacional de Descentralizaci n CND y su Secretar a T cnica En la primera etapa de Caminos Rurales y parte de la segunda etapa la identificaci n y prioriz
184. o health services 64 72 46 64 49 4 33 63 Better access to education 50 o4 35 pee 38 pee 1022 SAR Better access to markets 78 74 83 089 9 85 pOtt 74 65 Better employment opportunities 55 55 35 STREET 14 S56 Reduced prices for goods 38 28 18 260 21 5 11 Others 36 29 17 20 16 20 21 17 significant at 20 percent significant at 10 percent significant at 5 percent significant at 1 percent 80 Results from 1 and 2 impact evaluations A summary of key conclusions from the first and second impact evaluations is presented in the table below Conclusions are remarkably consistent between these two evaluations e Rural roads programs were found to have a strong and short term effect on improving transport conditions decreased travel times and travel costs more reliable transport services and on increasing traffic e A longer term impact was found on improving access to social services particularly health In the case of the second evaluation improved transport also led to increased security higher number of police interventions e Better roads allowed improving some performance indicators related to the rural economy livestock ownership increased as well as farm prices access to marketplace was facilitated and a small positive effect was reported in terms of farmed land area access to credit and diversification outside the agriculture sector In terms of income agricultu
185. on seemed to deteriorate before and after rehabilitation unlike for rural households for which it increased This might be interpreted by the fact that local leaders who may less use NMTs would have preferred a higher standard of transport infrastructure rural roads while households as actual users acknowledged the usefulness of NMTs Maintenance activities were positively perceived for rural roads micro enterprises but much less so for NMT tracks which could also be a consequence of the fact that local stakeholders unlike households using these infrastructure reject NMT rehabilitation and maintenance model This could however also mean that the maintenance arrangements P Escobal J and Torrero M An lisis de los Servicios de Infraestructura Rural y las Condiciones de Vida en las Zonas Rurales de Per 2004 79 for NMT tracks rural roads committees are less of an efficient and sustainable mechanism than maintenance arrangements for rural roads micro enterprises Main reasons behind dissatisfaction expressed in a few limited cases regarding maintenance arrangements include micro enterprises insufficient presence and disorganization Finally benefits reported by households are grossly consistent with evaluation s conclusions summarized above access to social services education health is increased by a greater extent in the case of rural roads while in the case of NMT tracks the greatest impact is on employmen
186. onal and local authorities A limited area was selected including three locations along the Ucayali River between the city of Pucallpa and the town of Atalaya The PPS was implemented in the Districts of Masisea Iparia and Tahuania and benefited communities from two Indigenous ethnic groups the Ashaninka and the Shipibo Conibo as well as the small towns and settlers villages in the area The methodology implemented in the PPS allowed for the inclusion of activities beyond transport improvement such as the promotion of strategic partnerships to strengthen local organizations and provide technical and financial advice for developing productive projects as well as to facilitate coordination and synergies with other sectors agriculture 52 fisheries etc for the preparation of development projects in the area of influence of the PPS In total eight road projects were identified through participatory workshops for both districts totaling around 5 million dollars As part of the expected synergies these works were to have 8 development projects were identified to be implemented in the area of influence of the PPS At closing a total of 47 63 km of NMT tracks were finalized which represent 100 completion In regard to the rural roads two sets were planned 1 rural roads and 2 lower standard rural roads The first set comprised a total of 50 11 km out of which 18 70 km have started the initial civil works and 25 02 km are still pending
187. or Road Engineer Senior Infrastructure Economist Sr Environmental Engr Sr Financial Management Specialist Junior Professional Associate Senior Environmental Specialist Sr Procurement Spec Consultant Sr Social Scientist 67 Unit LCSFT IADB LCSFT LCSSO LEGLA LCSFM LCSPR LCSFT IADB IADB IADB LCSPT TUDTR TUDTR LCSTR LCSSO LCSFM LCSTR IADB LCSFT LEGLA IADB LOAGI IADB LCSTR EASRE LCSFM LCSTR IADB LCSPT LCSTR LCSSO Bank Lending and Implementation Support Supervision Processes Responsibility Specialty Task Team Leader World Bank Task Team Leader IADB Transport Economist NGO Coordinator Social Specialist Legal Counsel Financial Management Specialist Transport Economist Procurement Specialist Program Assistant Environmental Specialist Highway Engineer Highway Engineer Procurement Specialist Transport economist Economist Gender specialist Social Scientist FM Specialist Social Scientist Task Team Leader IADB FM Specialist Task Team Leader World Bank 2002 2004 Legal Counsel Road Engineer Disbursement Officer Road Engineer Task Team Leader World Bank 2004 2007 Environmental Specialist FM Specialist Financial Specialist Environmental Specialist Procurement Specialist Environmental Specialist Social Scientist b Staff Time and Cost Stage of Project Cycle Lending FY99 FY00 FYO1 FY02 FY03
188. ordable by raising awareness of the importance of transport services over the unclassified village network through this component helping design ad hoc local programs to mobilize additional financial aid for this or other purposes see the local development window in component 6 4 and generating supplemental income through implementation of the road components Component 4 Provincial Road Management Pilot The proposed pilot aimed to test an institutional model for managing the rural road network at the provincial level in which the municipal authorities of the province provincial and district municipalities would jointly assume responsibility over the development and condition of a core provincial road network This would prevent the current institutional and financial segmentation hindering municipalities from undertaking integrated initiatives or responsibilities The province of Arequipa was chosen to start the pilot on account of the strong commitment demonstrated by the provincial authorities to the pilot goals and the availability of basic institutional capacity on which to build on to carry out the up front work and implement the pilot later on with greater chance of success The pilot was designed building on a series of participatory workshops that involved provincial and district officials as well as key representatives of the business community with vested interests in good roads Municipal authorities agreed upon the institutional and
189. os agentes como comerciantes y transportistas Poco m s de 1 300 hogares fueron encuestados en ambas ocasiones Encuestas tipo panel Tanto para Caminos Vecinales como para Caminos de Herradura se consider 18 conceptos analiz ndolos con el m todo de la Doble Diferencia Los resultados sobre el grado de pobreza son discutibles ya que el m todo utilizado se basa en encuestas sobre presupuestos de los hogares no considerando debidamente el incremento de la oferta de bienes p blicos muy importante en las ltimas d cadas Asimismo nadie espera que con una inversi n de 400 millones de d lares se supere la pobreza rural empresa GRADE ha desarrollando el Estudio de Evaluaci n Impacto Ambiental del cierre del Programa el ltimo informe se encuentra en revisi n para su aprobaci n IMPACTO SOCIO ECONOMICO El impacto socioecon mico es probablemente el resultado m s importante del programa de caminos rurales ya que refleja la verdadera mejora en la vida cotidiana de los pobladores gracias a un estudio realizado por cuanto en el 2004 Actualmente se esta realizando un segundo 117 estudio elaborado por Grade del cual tendremos las cifras y resultados finales del cierre de esta segunda etapa Tenemos algunos puntos generales en el impacto as como cifras espec ficas cuadro 2 las cuales presentamos a continuaci n Mayor dinamismo a mercados mayores transacciones comerciales Funcionamiento de m
190. ot registered at the national or local level It is estimated that the total length of the Peruvian rural road network could reach 100 000 km about twice as much as the registered network of 47 000 km A huge number of roads had in fact been built by various entities communities municipalities firms which were not required to report these new constructions while no road census has been conducted for years In order to tackle this problem of roads registration and to provide provinces with a powerful planning tool as well as to give a useful regulation tool to the MTC Provias Descentralizado decided to implement a Geographic Information Systems GIS pilot in two Peruvian provinces Yauyos and Huaral This technology has been chosen because it had been proved to be the cheapest and most rapid one to implement Once equipment has been bought US 8 000 mostly for GPS system such a study costs 20 000 soles and takes one month and a half to be conducted including two weeks on the field Moreover the methodology retained is divided in six successive steps 1 meeting with local authorities and coordinating with them 2 analysis of the rural road network based on the local contributions gathered in step 1 3 constitution and preparation of the team 4 field visits conducted by consultants where each road is ridden with GPS and information is collected and computed 5 results evaluation 6 disclosure of information The final product is an in
191. ous Maize 1 60 600 320 Beans 1 00 750 360 Rice 1 50 500 220 Yellow Maize 1 60 450 220 Banana 2 00 300 140 Production Farm Yield Cost Price Livestock kg head US head US head Bovine 180 17 125 Goat 35 8 20 Pig 45 5 40 Ovine 20 3 10 Cost Effectiveness Analysis 62 For the 77 rural roads subject to a CEA 1 the average rehabilitation cost is US 14 439 per km ii the total rehabilitation cost is US 17 62 million iii the average cost per beneficiary indicator is US 46 per person and iv the average total population served is 594 persons per km of which 390 persons are direct beneficiaries The CEA cost per beneficiary indicator was computed dividing the present value of the road agency costs over a 10 year evaluation period by the total population served direct plus indirect beneficiaries The road agency costs comprise the investment costs routine and periodic maintenance costs supervision costs and environmental mitigation costs The average routine maintenance costs is US 850 per km per year the average periodic maintenance cost is US 2 900 per km executed every 3 years the average supervision cost is US 1 230 per km and the average environmental mitigation cost is US 380 per km Figure 3 presents a histogram of the cost per beneficiary indicator for the rural roads projects Figure 3 Cost per beneficiary for rural roads projects Rural Roads Projects OO o
192. out project life time Provias Descentralizado has been working actively with MEF to make permanent the transfer of specific budget resources to municipalities to pay for routine maintenance and make the micro enterprise model sustainable This goal was achieved in 2006 with the publication of Supreme Decree No 017 2006 MTC which transfers on a permanent basis to municipalities specific resources in order to finance the routine maintenance and related administrative costs of rehabilitated rural roads Promote gender A gender action plan was prepared and implemented by an individual consultant contracted under this component The action plan allowed streamlining gender in various activities including micro enterprises road committees and Local Development Window initiatives Impact evaluation Two thorough impact evaluation studies at mid term and at the end of the project were performed under this activity With the final impact evaluation survey that has been performed at the end of the Rural Roads Rehabilitation and Maintenance Project three impact evaluation surveys covering about 12 years of implementation have been done allowing capturing long term impacts of rural roads investments on rural welfare Transport rural infrastructure and rural development Within this activity Provias Descentralizado coordinated closely with other agencies in charge of rural infrastructure and rural development Provias Descentralizado has been
193. overnment s decentralization agenda On the financial side long term project sustainability was linked to the establishment of a financial mechanism for the municipalities to undertake road maintenance activities In order to increase and sustain road maintenance resources the following actions were taken i investment resources were shifted to current expenditures like maintenance ii revenue generation was improved and intergovernmental transfers aimed to increase road maintenance resources were increased to ensure a sustainable source of funds for road maintenance and management In 2006 the intergovernmental transfer was made permanent through the publication of the Supreme Decree No 017 2006 MTC Follow up operation The decentralized rural transport project will constitute a follow up to the second phase of the rural road program by scaling up to the entire country the 21 decentralized rural roads policies that have been successfully developed during the first two rural road projects The project will also provide a comprehensive institutional strengthening package at the local and central levels in the broader context of decentralization reforms It is expected to coordinate closely with the Bank funded Peru Rural Electrification project and the National Rural Water Supply and Sanitation project particularly regarding the design and implementation of the rural infrastructure pilot and to coordinate with the other Bank funding p
194. para dinamizar el crecimiento Reducir costos de producci n y mejorar la productividad Reducir los costos de transacci n facilitando la integraci n de actividades y espacios a los mercados y ejes de desarrollo Mejorar acceso a servicios y elevar calidad de vida Criterios orientadores de los PIEP Priorizar por reas geogr ficas se trata de bienes p blicos Conciliar criterios t cnicos y participativos con horizonte de largo plazo Aprovechar el car cter estructurante de las inversiones en vialidad para potenciar a los dem s rubros de infraestructura econ mica Generar complementariedades y econom as de aglomeraci n entre los componentes vialidad electrificaci n comunicaciones saneamiento y riego para generar impactos amplificados sobre el desarrollo local Intervenir con criterios sist micos o de redes no en tramos aislados a fin de beneficiarse de las externalidades y optimizar el impacto de los proyectos de inversi n Operar a partir de un tama o m nimo de proyectos y obras para aprovechar econom as de escala reducir costos y mejorar los beneficios El marco institucional de los PIEP es Convenios entre Municipalidad Provincial y Sectores Compromisos del Alcalde Provincial los alcaldes distritales y responsables de los Componentes Conducci n pol tica Municipalidad Provincial Conducci n t cnica Secretar a T cnica del PIEP Asesoramiento Comit de Coordinaci n Multisectorial represent
195. performance parameters were high and they had to stand their colleagues mockery iii single women had to undergo the reluctances of their communities which discouraged them from working or joining MEMV and iv whenever female workers could not find someone to take care of their children they had to assign this task to their elder daughters who had in some cases to give up her studies C Gender assessment by component NMT tracks improvement This component came as an answer to the specific needs of the most rural peoples identified through the consultation processes that took place during the preparation of the 87 program Consequently this component benefited directly low income groups especially women who are the most frequent users of informal transport modes like NMTs Women participation quota in the Rural Roads Committees was set as 20 percent both for the committees and for the remunerated teams During the selection process 30 percent of candidates were women CVR composition by Gender indicating the of women 1st Quarter 2006 21 38 Other gt 33 17 Fiscal 52 08 Facilitator 4 24 in the Management Board 42 25 g Women Treasury 7 18 70 Secretary 200 4 60 President 0 400 600 800 1000 Total Impacts 1 Rural women strengthening Whenever these rural women exit their limited domestic sphere and partic
196. pment Type of Appraisal Actual Latest Percentage of Cofinancin Estimate Estimate Appraisal 8 USD millions USD millions PP 51 00 43 76 85 80 50 00 45 48 90 96 50 00 48 19 96 38 46 Annex 2 Outputs by Component The project has been implemented in 121 provinces 573 districts mostly belonging to the twelve poorest Peruvian departments representing about half of the country Over the project s lifetime the poverty ranking of those departments has remained stable and these 12 departments still belong to the countries 16 poorest Most of the physical targets set for the project were surpassed by its closing date on November 30 2006 The provincial decentralization pilot component 4 also exceeded very significantly its initial target and proved to be perfectly aligned with Peru s agenda for greater decentralization at the municipal level In all departments but Madre de Dios the final output of rehabilitated roads was higher than the initial target The additional output of rehabilitated roads benefited to a significant extent to the departments where the 2001 extreme poverty rate was the highest see Figure 1 Figure 1 Stock of rehabilitated roads vs extreme poverty levels 200 Ayacucho 180 Ancash oU Cusco 160 Huanuco ji B urimac San Martin B 3s Puno 120 e Cajamarca Pasco Huancavelica 8 0 ay Madre de Dios E e S 60 gt
197. por kil metro 111 El Mantenimiento de Emergencia o Extraordinario es el tipo de mantenimiento orientado a asumir las actividades propias de eventos de la naturaleza como huaycos derrumbes de mediana a gran magnitud entre otros En estos casos la intervenci n es de manera conjunta entre la Municipalidad respectiva y la Microempresa de mantenimiento vial rutinario del mbito El tipo de intervenci n necesario depende del grado de deterioro que con el tiempo sufre el camino a causa de la acci n agresiva de los factores a que est sometido Las microempresas de mantenimiento tuvieron acompa iamiento profesional sostenido t cnico y empresarial durante ambas etapas lo que garantiz la ejecuci n del mantenimiento con calidad t cnica Se realiz con participaci n de contingentes anuales de Monitores conformados por egresados y bachilleres universitarios seleccionados de las Universidades locales Los Monitores desempe an su actividad en el campo en contacto directo con los socios de las microempresas cumpliendo funciones de capacitaci n asesoramiento monitoreo y evaluaci n El mantenimiento peri dico tambi n fue ejecutado mediante Convenios con Municipalidades Provinciales y Distritales en total 91 Convenios entre los a os 2002 y 2003 32 De las especialidades de Ingenier a Civil Econom a Contabilidad y Administraci n de Empresas Se celebraron Convenios con Universidades locales para que sus egresados previame
198. productiva En la segunda etapa la VDL ha desarrollado 81 planes de desarrollo distrital identificando un total de 845 proyectos de los cuales 665 corresponden a proyectos de infraestructura p blica por S 103 millones de nuevos soles 30 est referido a infraestructura econ mica y 180 proyectos son productivos a nivel de factibilidad estando 57 proyectos financiados y o en proceso de gesti n 17 proyectos se encuentran en ejecuci n PLANES DE INFRAESTRUCTURA ECON MICA PROVINCIAL PIEP El Plan de Infraestructura Econ mica Provincial PIEP es un instrumento de gesti n que orienta la intervenci n p blica liderada por las Municipalidades para hacer converger en forma articulada proyectos sectoriales de infraestructura econ mica 107 Asumen a los territorios provinciales como objetivo de las pol ticas p blicas coordinadas multisectoriales y como unidades de planeamiento y programaci n Parten de un enfoque territorial que ordena las visiones sectoriales y favorece la articulaci n urbano rural Actualmente se vienen culminando 7 PIEP e Provincia Vilcashuam n Departamento Ayacucho e Provincia Huanta Departamento Ayacucho e Provincia Tayacaja Departamento Huancavelica e Provincia Az ngaro Departamento Puno e Provincia Leoncio Prado Departamento Huanuco e Provincia Arequipa Departamento Arequipa e Provincia Sihuas Departamento Ancash Los PIEP se proponen v v v Orientar la inversiones
199. r Khandker and Rosenzweig 1993 However the empirical evidence of the effects of rural roads program on agricultural productivity is not as strong when more robust evaluation methodologies are being used ADB 2001 According to these studies rural roads programs are in fact most successful when they are complemented by other initiatives to increase agricultural productivity Finally these positive effects on small producers have been found greater for the less poor segments of the rural population Devres Inc 1980 Effects on employment Various studies discussed how rural roads improvement directly and indirectly affects employment opportunities for rural communities Jacoby 2000 Smith and al 2001 Quiz n and Sparrow 2001 de and Sadoulet 2001 The increased productivity of agricultural and non agricultural activities causes both higher wages and increased employment Road rehabilitation and maintenance works also generate employment Easier transport conditions favors migration because of improved access to information regarding employment opportunities in neighbor areas In Peru the rural roads program was found to generate employment particularly in the non 5 Information asymmetry results in market segmentation for agricultural products Because of this segmentation and lack of information small producers generally have to bear the most part when prices are falling and do not benefit as much when they are rising
200. r to accelerate disbursements c Justification of Rating for Overall Bank Performance Rating Highly Satisfactory Overall Bank performance is rated highly satisfactory taking into consideration the quality at entry the strong cooperation with the IDB and the sustained policy dialogue with the GoP through a series of three rural transport operations that constitute an exceptional example of how new rural transport instruments could be first tested and then progressively streamlined over a period of more than a decade The project is known in the LAC region and beyond as a best practice and its design influenced many other rural transport operations Various events were organized to disseminate lessons from this successful project For example a short video Connecting Development Rural Roads in Peru was produced in partnership with the Bank Operations Services department The Peruvian experience about road maintenance micro enterprises MEMV was also described extensively in a micro enterprises toolkit together with the experience of other Latin America countries Colombia Honduras 5 2 Borrower Performance a Government Performance Rating Satisfactory Government performance is rated satisfactory This is justified by the strong momentum for decentralization initiated by the Toledo administration and likely to be furthered by the Garcia administration This momentum coincided with some key project components Provincial
201. ral Sierra of Peru that could complement the Government s multi sectoral poverty reduction program To do so it aimed to emphasize the creation of development opportunities through concerted local interventions in order to enhance the impact of rural accessibility improvement on poverty reduction It also sought to strengthen the institutional and financial sustainability of rural road maintenance in order to enable a gradual transfer of responsibilities to the local government environment Specific Project Objectives The specific project development objectives were to a integrate poorly accessible zones to social services and regional economic centers b generate employment in rural areas and c strengthen local institutional capacity to manage rural roads on a sustainable basis and launch community based development initiatives Key performance indicators The key development outcomes and performance indicators selected to measure achievement at the end of the project were as follows 1 Poorly accessible rural zones integrated to social services and regional economic drivers e 3 5 million beneficiaries in the project area interlinked by a reliable and affordable transportation system e travel time to markets and district centers decreased by 40 percent after rehabilitation of project roads and e the availability of freight and passenger transport services increased by 30 percent and their cost reduced by 15 percent with respect to the
202. ral transport policies engaged by the GoP through Provias first with the Rural Roads Rehabilitation and Maintenance project then with the Second Rural Roads project and now with the Decentralized Rural Transport project Through this series of three projects the Peru Rural Roads program 38 has proved both to be consistent in its strategic objectives poverty focus efficiency in the use of resources with the adoption of low cost rehabilitation techniques and sustainability with due attention paid to routine maintenance while bringing key innovations in a timely manner participatory planning processes decentralized institutions complementarity with other types of investments In this regard the Peru Second Rural Roads project has played a critical role to bridge key reforms engaged under the first project with a long term vision of fully decentralized efficient rural transport policies aligned with the territorial development strategies elaborated by rural stakeholders 6 Lessons Learned Continuing a learning process begun with the first phase of the rural road program the project offers rich lessons about what can ensure the sustainability of both investments and implementation capacity One of the most striking features of the project relies in its integrated approach through its multi facets components and how they have been coordinated together in a systemic graduated manner With six components covering many aspects of rural inf
203. ral wages were found to increase and employment structure was slightly modified with greater diversification e An ultimate effect on reducing rural poverty was slightly found in the case of the 2004 evaluation suggesting that this was a longer term effect Table 16 summary of key results from the first and second impact evaluations Sector Indicator Term Hypothesis 2000 evaluation 2004 evaluation Transportation Travel time Short Decrease High High Traffic rate Short Increase High High Fare prices Short Med Decrease Moderate High Moderate High Freight prices Short Med Decrease High High Road closure Short Decrease Moderate Moderate Reliability public transport Short Med Increase Moderate High Moderate High Access to School Registered children Med Long Increase Low Low public services Health consultations Short Med Increase Moderate Moderate Judicial causes Short Med Increase Null Null No of police interventions Short Med Increase N A High Productive Farmed land area Med Increase Low Low activities Land value Medium Increase Null Null Productivity Medium Increase Null Null Livestock ownership Medium Increase Moderate Moderate Farm prices Short Med Increase High High Crop allocation Med Long Variation Null Null Market oriented produce Medium Increase Null Null Access to marketplace Short Med Increase Moderate Moderate Access to credit Med Long Increase Low Low No amp income of com estab Medium Increase Low Low Income struct
204. rastructure rehabilitation maintenance institutional strengthening participation it could have been difficult to logically articulate and monitor evaluate them while giving sense to the whole In such a project starting conditions flexibility participation a robust M amp E framework exploited by a learning organization such as Provias were keys By including the various stakeholders and engendering the project activities the project illustrates a new demand driven paradigm for transport planning and economic development As part of this new paradigm the project has allowed to advance knowledge in the design of an interconnected set of elements that reinforce each other and several of them with built in structures that create the incentives for adequate and sustained performance Examples of this are the micro enterprise model and the provincial road institutes This paradigm emphasized gradualism and research The project led to the development of innovative instruments for rural road programs through the design and implementation of several pilots such as a Plan Piloto Selva that explored ways to customize rural transport solutions including river based to the context of the Peruvian Selva and a provincial road management pilot that was successfully replicated for secondary roads Building on the decentralization reforms the project also helped the management of rural roads to be progressively handed over to municipalities
205. rehabilitation which reduced the average time necessary to reach Tarapoto from six to two hours approximately 61 families benefited from the project with female participation estimated at approximately 40 percent The project also led to the creation of a Cooperative composed by a Committee of non industrial fishermen and a Committee of Dames which assumes tasks related to product commercialization and coordination with the Sauce Municipality 41 Decentralization can improve rural roads programs which in turn can contribute to strengthening the decentralization agenda as well as territorial development The national decentralization process that took place in Peru facilitated reforms in the rural roads sector However the development of the rural road program and the Participatory Provincial Road Plans which were prepared by the key rural provincial stakeholders also had positive effects on the strengthening of decentralization reforms and resulted in better aligned rural roads investments with territorial development strategies Likewise by contributing to participatory planning budget systems and contract terms for local municipalities the LDW helped strengthened municipal procedures and management capability road maintenance and local development management More recently the LDW has started to move its planning methodology at the regional level with the preparation of the first rural infrastructure plans in the provinces of Ar
206. rengthen the rural population s relationships with dynamic networks of markets and institutions e g industrialists traders organizers of production networks that can mediate their access to productive resources and to wider higher value markets and chains of production ii to assist community organizations and individuals in identifying structuring and financing 11 local initiatives and productive undertakings that are better linked to market demands through demand driven technical assistance and partnerships between technical assistance providers regional business operators financial intermediaries investors and donors iii to empower community grassroots institutions and individuals by building up the basic human and social capabilities i e skills social capital needed to take a proactive role in initiating or expanding development activity and become agents of change in their communities and iv to establish a private sector led vehicle for coordinating and channeling specialized assistance and monitoring its results without overwhelming Provias with activities that demand expertise in diverse fields and time consuming contacts with actors and grassroots groups at the local level which are far beyond the reach of Provias The LDW would mobilize demand driven technical assistance for identification of opportunities and design of micro businesses and productive projects To facilitate interactions between rural communities
207. resentaci n y transitabilidad ptima de la v a En este caso la funci n de control es de car cter t cnico y sobre par metros t cnicos Sin embargo el control social ejercido por la colectividad usuaria trasciende estos aspectos t cnicos y puede incluir adem s el manejo de los fondos destinados a estas labores de mantenimiento toda vez que parte del dinero es cofinanciado por las municipalidades Por ejemplo en el futuro pensamos que ser conveniente incorporar en el directorio de los IVP a representantes de los usuarios de las v as rurales La estrategia participativa disef ada por Caminos Rurales vincula al Proyecto directamente con las Municipalidades y con las Asociaciones Civiles del mantenimiento vial rutinario e 114 indirectamente con la poblaci n en general usuaria de los caminos Esta condici n de transe ntes y transportistas cotidianos despertar una percepci n adicional positiva si los caminos vecinales est n presentados en satisfactorias condiciones de transitabilidad o por el contrario si las v as presentan deterioros e inseguridades desatar una corriente de opini n adversa La percepci n directa que se traducen en comentarios directos hacia las Asociaciones Civiles y sus socios a quienes conocen por ser tambi n pobladores locales sumado a la modalidad de contrataci n del servicio se traduce en una presi n constante explicita o impl cita por el usuario tanto a la entidad que desarrolla el mantenimi
208. ricano de Desarrollo US 50 millones y por fondos de contrapartida asignados al Programa por el MTC y por los Gobiernos Locales beneficiarios Se ejecut con una inversi n estimada de US 151 millones de los cuales US 50 millones es financiado por el Banco Mundial US 50 millones por el BID seg n Convenios de Pr stamos N 4614 PE y N 1328 OC PE del BIRF y BID respectivamente y US 51 millones por fondos de contrapartida del tesoro p blico asignados al Proyecto por el MTC y por los Gobiernos Locales beneficiarios La meta es rehabilitar y mantener unos 4 300 Km de caminos vecinales y 3 300 Km de caminos de herradura adicionales tanto en los 12 departamentos de la primera etapa como en 7 nuevas provincias Chachapoyas Amazonas S nchez Carri n La Libertad Huancabamba Piura Yauyos Lima Arequipa Arequipa y Coronel Portillo Ucayali Adem s se tuvo la intervenci n de las siguientes fuentes de financiamiento Fondo Contravalor Per Italia S 21 490 643 30 Fondo Contravalor Per Francia S 4 950 000 00 d lares Proyecto de Desarrollo Alternativo Tocache Uchiza PRODATU S 4 400 000 00 Pa ses Bajos S 4 069 132 17 DE VIDA S 4 022 627 80 ANALISIS DE COSTOS Inicialmente se planteo un costo promedio por para cada tipo de componente el cual ha ido variando a lo largo de la ejecuci n del programa debido a diversos factores Se ha determinado un 115 costo promedio cad
209. rojects and initiatives in the area of decentralization particularly the Institutional Capacity for Sustainable Fiscal Decentralization Technical Assistance Loan Finally coordination would also be ensured with the Sierra Rural Development Project under preparation 3 Assessment of Outcomes 3 1 Relevance of Objectives Design Implementation The Second Rural Roads project was well aligned with the priorities of the GoP and with the Bank s Country Assistance Strategy CAS Both development agendas stressed the importance of promoting a more inclusive growth through greater infrastructure investments in rural Peru particularly in the Sierra and through decentralization as a means to empower local stakeholders and improve the management of public expenditures The project addressed these issues through an ambitious program focused in the rural areas of the poorest departments combining a set of transport related policies with a social development agenda that became particularly relevant in the context of the decentralization reforms initiated by the GoP after 2002 In particular the participatory planning instruments but also the institutional model of the Provincial Road Institute and the cooperation arrangements it implied between provincial and district municipalities made a significant contribution to the Peruvian decentralization process The original design of the Second Rural Roads project could also build on the achievemen
210. rs Local Development Window through a gender viewpoint During the preparation of the LDW s local development plans a Rapid Rural Poll was carried out in every community This poll stipulates that the population sample must be Peru Poverty Assessment The World Bank Dec 2005 Female workers receive lower wages than their male counterparts and the gender gap is larger for household heads than for other workers 90 differentiated by sex and age firstly and secondly by economic condition As consequence women were represented in the participatory sessions allowing their concerns and opinions to be voiced As an illustration the Sauce Lake Project was mostly driven by women from the local community 60 percent of these women were fisherwomen who generally shared the tasks with their husbands The Sauce Lake had lost its productive levels of fish and women were among the most affected because they could not feed their children any longer Women presented to the LDW program a project to better exploit the fishery potential of the lake One of the impacts of the increment of tilapia production in the lake was that the area population was eating better Teachers also reported that better fed children had an increased attention in school and did not fall asleep during class as they used to Another example is in Chicche Huancayo where women chose to promote self employment in processing and dyeing ovine wool Women spinners have
211. rship M M Reduced NE Reduced horses Increased Farm prices S M H Diverse Crop allocation M L N Increased Market oriented M N produce Increased Access to marketplace S M M Increased Access to credit M L L H request Ex N only Increased No amp income com M L ets Diverse Income structure M L L L M trade amp Employment Change Type of occupation M L L L H less TS non active Change Occupation category M L N L more H formal unpaid family 32 Migration Poverty Institutions Road safety Environment Change Productive activity Increase Agricultural day s wage Change Labor force structure Decreased No of migrants Increased No returning migrants Decreased Poverty levels Increased No of new institutions Increased No of traffic accidents Increased Use of land Increased Use of chemicals Increased Deforestation workers M L N L H more 0 agric less cattle M M M L L M L N M L L L N 2000 L less M H L 2004 extreme more non poor S M M L L S L M M N H T Reduced M N N N S M L L M S short M medium L long N null L low M moderate high significance lt 20 o significance 20 significance 10 significance 5 significance 1 A stakeholder workshop was also organized on March 13 2007 allowing to receiving feedback from practitioners and beneficiaries Key conclusions are presented in A
212. rther south and transportation was only possible during the rainy season due to river levels which coincides with the highest demand for barges because this is the time for logging gathering and transportation A Bank mission to the Masisea region was organized in April 2007 to assess results from the PPS The most important lessons learned are related to the relationships between climate seasonal variations and local topography as well as to the local participation and local and regional government commitment On the first issue the PPS has found out that the development of civil works for road rehabilitation and wharf construction require at least two stages in different seasons The first stage is for the recollection of construction materials and depending on the topography and location of materials it has to be made either in the dry season or in the rainy season while actual construction has to wait for the dry season So in some instances to finalize one of the road projects it could take around a year and even more while in other cases it could be done in two seasons This had cost implications as well as the requirement of a flexible schedule Overall it clearly showed that working in the Selva 53 region requires much more time than in the Sierra The topography of the areas also showed that the number of small bridges require to complete a road cannot be underestimated due to the terrain prone to flooding Another lesson learned i
213. rticipativo y generador de empleo en el medio rural es sostenible desde el punto de vista institucional como financiero es descentralizado y complementario con iniciativas productivas asociadas al camino interviene en los departamentos m s pobres y las intervenciones son planificadas por los alcaldes de una provincia teniendo en cuenta el ciclo completo del proyecto desde la selecci n de prioridades hasta la operaci n y mantenimiento de las v as intervenidas utiliza tecnolog a apropiada al volumen de tr nsito existente as como a las capacidades locales disponibles Considera a la Provincia como mbito de gesti n del transporte rural reconociendo su jurisdicci n y competencia asegurando su compromiso con las actividades a desempe ar y su apropiaci n de los objetivos del Programa todas las actividades de inversi n son realizadas por TERCERIZACION con empresas y consultores independientes locales y regionales promueve la generaci n de empleo por la mezcla tecnol gica que utiliza caracterizada por elevadas normas t cnicas en la rehabilitaci n que requieren el uso de maquinaria pesada mientras que el mantenimiento rutinario se realiza con herramientas de mano Es incluyente por que incorpora a los sectores m s pobres y vulnerables de la poblaci n a mejores condiciones de empleo e ingresos sostenibles promueve la equidad de g neros en el acceso al trabajo rural 23 de socias de las microempresas de mantenimiento vial consti
214. ry significant and immediate effect was observed in the case of girls attending primary schools while a similar effect was observed for boys but in the case of secondary education These results are consistent with the interpretation proposed in the literature that girls are more sensitive than boys to sound transport conditions to go to school because of the increased security they ensure On the other hand while boys might be relatively indifferent to improved transport conditions to go to nearby primary schools they should be more sensitive to them in order to access secondary schools requiring longer and possibly more hazardous traveling Another hypothesis is that the returns to primary school are high enough to justify paying the cost of traveling to school but the returns to secondary schools fall relative to the cost of transportation thus on the margin lowering the cost of transport with help to align the cost of transport with the benefits from secondary schooling Why this may be different for boys and girls may be explained by the fact that on average returns for schooling for a girl are lower than that for a boy given some social discrimination toward employed women or some other reason Only rural roads seem to play a role in providing improved access to education while NMT tracks have little impact in this regard and seem to play a different function see below Finally and although these results seem less statistically significan
215. s an amendment 7 Terms of Reference approved by the Bank on September 12 2005 Contract extended in May 2006 Since 2004 the World Bank and the IaDB have adopted harmonized procurement documents 19 to the Legal Agreement was processed to increase the Bank s disbursement ratio for works from 50 to 70 percent see also 2 2 Environmental Assessment Compliance with Bank environmental safeguards has been satisfactory The project had been rated as Category B since no major environmental issue had been anticipated from project works Environmental procedures followed those agreed during project preparation as specified in the Operational Manual Specific procedures were applied in the case of the Plan Piloto Selva since these activities were performed in a very sensitive area from both a social indigenous peoples and environmental perspective see Annex 2 Indigenous Peoples Compliance with Bank social safeguards has been satisfactory OD 4 20 Indigenous Peoples Policy was triggered and Indigenous Peoples Plans were prepared in consultation with the native communities of the Amazon basin for the preparation and the implementation of the Plan Piloto Selva PPS For the Sierra region the project implemented a strong participatory approach including the creation of road maintenance micro enterprises that included and benefited Indigenous and non Indigenous farmers In both areas an extensive consultation process was carried out to
216. s particularly in the broader context of Peru s decentralization reforms Achievement 82596 Number of micro enterprises engaged under contracts to deliver quality maintenance b Intermediate Outcome Indicator s Indicator Indicator 1 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 2 Value quantitative or Qualitative Date achieved Comments incl 96 achievement Indicator 3 Value quantitative or Qualitative 340 470 532 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded Achievement 113 Original Target Actual Value Formally Values from Achieved at Baseline Value Revised CODES RR PR Target Values documents Target Years Rural roads rehabilitated to an adequate level of trafficability km 0 3 225 4 039 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded Achievement 12596 Connecting primary and secondary roads rehabilitated to good condition km 0 350 653 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded Achievement 186 Roads routinely maintained at project standards by micro enterprises formed and trained under the project km 11 295 13 500 14 750 Date achieved 09 30 2001 11 30 2006 11 30 2006 The project end target has been exceeded incl 96 E chievemen Achievement 109 Indicator 4 Community tracks for non motorize
217. s the low response to literacy programs among women comes from their scarce time availability their lack of self esteem and sometimes community censure However female micro entrepreneurs were found to be firm believers of the importance of sending their children girls and boys to school In many cases these illiterate women were also reconsidering going to school themselves 3 Empowerment In low income households in rural Peru alcohol abuse by men and domestic violence on children and women are common In this context the participation of women in the MEMVs contributed to their empowerment they were able to learn to walk out their domestic environment to participate in their communities decisions and to strengthen their capabilities In one of the workshops that were organized during project implementation some of the women stated I did not know that I had rights thus illustrating the crucial importance of capacity training delivered to women as well as of literacy teaching in order to support women empowerment and public participation Evidence shows that impacts of women education are multiple ranging from reduced fertility ratios increased health for family members to better household s cash management 4 Control of the economic resources Unlike men women spend most of their earnings in nutrition and children s education The Project contributed to increase women s earnings and consequently promoting women s control on
218. s culturales 113 Y Cultura ancestral de las comunidades relacionadas al trabajo comunal Ayni trabajo solidario Minka trabajo cooperativo permiten una buena organizaci n para las labores Los integrantes radican en la zona de trabajo Las relaciones interpersonales son fluidas entre sus miembros por pertenecer a una misma comunidad o comunidad vecina con costumbres afines o similares Y Experiencia de organizaci n local tipo empresarial en el rea rural Pobladores de menores recursos organizados y capacitados se incorporan a la fuerza de trabajo en mejores condiciones con los efectos en las familias y el nivel de vida Y capital humano se fortalece en las comunidades rurales El reconocimiento de estas organizaciones en el contexto local como aporte al desarrollo de la zona lt lt Actualmente los gobiernos locales realizan directamente trav s de sus los procesos de selecci n y contrataci n de personas naturales o jur dicas para el servicio del mantenimiento rutinario Las microempresas promovidas y conformadas por Caminos Rurales I y II cuentan con las potencialidades necesarias y suficientes para ganar los concursos EL CONTROL SOCIAL EN EL MANTENIMIENTO VIAL RUTINARIO Uno de los principios generales que rige la descentralizaci n Ley N 27783 Ley de Bases de la Descentralizaci n se ala que esta forma de organizaci n del Estado es democr tica que se desarrolla en los planos po
219. s that the bidding process should target firms located in the Selva region because those coming from urban settings like Lima lack experience in working in the Amazonian terrain As a consequence of the specific challenges of the Selva difficult access lack of local materials reduced competition rehabilitation costs have been found to be much higher than in the rest of Peru In order to reduce rehabilitation costs taking also into count the lower traffic levels road rehabilitation standards could be simplified One first step in that direction was made by Provias with the design of specific standards Caminos Vecinales Menores which are an adaptation of regular rural roads design to traffic conditions in the Selva low traffic constituted mostly from moto taxis Provias plans to continue studying rehabilitation alternatives customized to the Selva On a second set of issues the PPS showed that local Indigenous communities as well as settler s towns and municipalities were eager to participate and to have the road projects completed They set up committees to overlook the civil works ensure security of the materials and safety of the civil works and avoid the transit of trucks that work in wood extraction as to protect their forest Regarding the expected productive projects there has been less financial commitment on the part of the regional authorities than previously expected IPDP Sub projects For identifying and agreeing on the s
220. sferred by the central level to local governments account for 58 while Foncomun accounts for 42 of the PRI s budget The PRI is staffed with a manager an operation officer a treasurer and one assistant the two latter being employed by the provincial government of Yungay As of today the PRI of Yungay finances 7 micro enterprises representing 70 permanent jobs which maintain the 186 km of rural roads transferred by Provias It has also contracted different work studies financed by Provias In addition the PRI has contracted and executed by itself the reparation and upgrading of 8 small bridges For the future it plans to rehabilitate and upgrade 6 rural roads and to conduct the periodic maintenance on one rural road all works being financed by Provias Descentralizado Regarding its planning function the PRI is currently updating its provincial road plan which was prepared in 2002 For all these activities the institute closely coordinates with Provias both at the central and local level through the Unidad Zonal Source Provias Descentralizado The component initially included the rehabilitation and maintenance of about 200 km of priority roads in the pilot province of Arequipa in a fully decentralized manner i e with the direct involvement of the PRI Early on in project implementation 158 km of roads were actually rehabilitated and maintained under this component With the expansion and streamlining of the PRI model other works
221. si n de estos en unidades independientes capaces de autofinanciarse a trav s de diversas actividades como la elaboraci n de perfiles expedientes t cnicos entre otros buscando financiamiento adicional al del programa y desarroll ndose fuera de el Es importante disponer de un plan final al t rmino del programa a fin de identificar los puntos cr ticos de la ejecuci n para poder implementarlos y mejorarlos en el futuro Es necesario el apoyo a los Gobiernos Locales por ejemplo con transferencia de capacidades cognitivas t cnicas y profesionales la facilitaci n de herramientas de gesti n inventario y planes viales inscripci n y codificaci n de caminos para asegurar la sostenibilidad del impacto del proyecto Es importante atender la instrumentaci n de pol ticas a nivel descentralizado gobiernos locales La integraci n de g nero ha sido un instrumento til para contribuir con el empoderamiento de los ciudadanos y ciudadanas rurales PREMIOS Y DISTINCIONES Debido al modelo de intervenci n e impactos descritos el Programa Caminos Rurales ejecutado por PROVIAS DESCENTRALIZADO se ha hecho merecedor a los siguientes reconocimientos internacionales y nacionales Banco Mundial BIRF el Premio a la Excelencia 2001 como uno de los tres mejores proyectos del mundo al haber superado las metas del Convenio con los impactos directos las zonas pobres del pa s Banco Interamericano de Desarrollo BID en raz
222. sis in order to identify their rural transport priorities in a concerted manner In that same province an association of 10 mayors finally decided to merge their priorities in a single road plan In Ayacucho 5 mayors agreed on common arrangements to ensure the maintenance of a rural road Through the provincial road board created under the project district mayors provincial mayors and PRI staff got used to hold regular meetings on the definition and implementation of rural transport policies and beyond on the definition of a joint vision for territorial development For example in San Martin 3 districts coordinated to develop a tourism development program participation Since 1980 the age for the right to vote was reduced to 18 years old for all citizens 1 illiterate women and indigenous peoples Women vote in Peru since 1956 Revocatoria According to the citizens control and participation law an elected candidate can be revoked when 25 percent of the municipal elections registered sign it 92 Strengthening of local governments In provinces with advanced PRI they were found to provide significant support to mayors In particular PRI provided them with technical assistance to help organize better their municipality or to prepare bids for road investments others than those included in the project In one case a mayor wanted to fully absorb the PRI inside the organization of the municipality in order to benefit fro
223. ssments for each of the areas selected and the corresponding engineering studies ii construction of safe moorings small wharves and durable landing facilities to improve cargo handling and make passenger and workers access safer and easier iii spot rehabilitation of the existing rural roads that connect communities to the improved landing facilities iv rehabilitation of non motorized tracks that connect with landing facilities and rural roads rehabilitated under the pilot v design and implementation of a participatory monitoring and evaluation system to keep track of outcomes and medium term direct and indirect impacts and vi establishment of partnerships for concerted interventions in the pilot area beyond the transport sector Riverside communities that were consulted prior to the project believed that only more ambitious road investments would solve their integration problems and get out of poverty Thus the pilot supported a more holistic view of development interventions in which the proposed transport improvements were to be accompanied by i technical assistance in areas such as land use planning and marketing or commercialization strategies for local products ii strategic partnerships to strengthen local organizations and obtain technical and financial support to develop productive projects and iii interventions in other sectors such as water sanitation health and education The monitoring and evaluation of positi
224. stained and continuous reduction of poverty The primary elements of the anti poverty program have consisted of raising the quality and improving the access of the poor to productivity increasing human capital market integrating infrastructure and the full rights and opportunities of private ownership The Peruvian Government also engaged in a large scale decentralization process to improve both the coverage of rural infrastructure and the quality of public expenditures The project was presented in the context of the 2001 CAS Progress Report which aimed to assist the Government in reviving the country s economy following the chain of adverse exogenous shocks that hit the country in the 1997 2000 period In contrast to the significant growth period of the early 1990s at 5 7 percent per year between 1991 1997 Peru experienced a severe economic recession during the 1997 2000 period with an annual economic growth rate of 0 9 percent during 1997 2000 partly due to external shocks such as the Asian and Russian crises the devaluation of the Brazilian currency and El Ni o During that period the economy stagnated the fiscal deficit increased as did the rate of poverty the poverty rate was estimated to have risen again to 54 percent by 2000 and private investment declined Main sector issues Poverty in Peru had been heavily concentrated in rural areas with over half of the rural Peruvians considered extremely poor living on less than US 1 a
225. such as the ones derived from the continuity of the micro enterprise program when clearly demonstrated and appreciated by the parties become powerful engines in the drive for sustainability iv the improvement of non motorized transport tracks and trails are one of the most strategic interventions of the project to alleviate rural poverty as it enables the project to reach the most vulnerable Risk identification and mitigation measures Sustainability issues and risks identified during project preparation were largely counterbalanced by successful implementation as well as the sensible financial and institutional aspects developed during the first phase of the road program Key elements to ensuring the sustainability of project activities include in particular the micro enterprises MEMV based road maintenance mechanism Participatory processes A key lesson from the first project was the relevance and importance of beneficiaries in the various phases of the project including subproject generation design implementation and maintenance in order to achieve the intended 13 objectives of alleviating poverty and building up local institutional capacity for sustainable maintenance Various participatory mechanisms designed for the poor to voice their transport needs were carried out during the implementation of the first project and included surveying existing problems and needs establishing explicit participation in collaboration or p
226. t a decrease of teacher absenteeism was reported in the project areas Regarding access to health services a very strong decrease in the number of young children affected from illness or accident was reported among the rural population having access to improved NMTs This suggests that the access of women mothers of young children to health centers was facilitated by improved transport conditions Table 11 key effects on access to social services double difference percent Effect Generation Generation 2004 2000 Total Rural Roads Tracks school enrollment for children Age 6 11 42 8 1 4 2 6 3 0 Age 12 18 1 6 4 2 6 6 3 7 school enrollment for boys Age 6 11 4 4 3 7 3 5 3 8 Age 12 18 4 0 7 0 49 7 0 6 school enrollment for girls Age 6 11 10 6 45 3 gt 46 7 1 5 Age 12 18 2 0 3 11 2 5 7 people suffering from illness or accident All age 3 3 2 5 3 8 12 1 Age 0 5 2 9 8 1 9 6 8 12 9 significant at 20 percent significant at 10 percent significant at 5 percent significant at 1 percent Effects on employment NMT tracks improvement was found to have a significant and short term impact on employment However these new jobs mostly seem to come from unpaid family workers and mostly belong to the agriculture and forestry sectors One interpretation could be that improved transport conditions allow easier access of other famil
227. t actual costs are 4 higher than contract costs Ultimately a review of 2 180 routine maintenance contracts demonstrates that actual costs are 2996 higher than contract costs mainly reflecting the expansion of contracts duration Ex post evaluation assumptions The ex post economic evaluation considered the results of the 2006 impact evaluation study that evaluated the impact on roads rehabilitated or improved between 2004 and 2006 The ex post economic evaluation has been readjusted to take into account the positive impacts showed by this study on the network condition the total motorized traffic on rural roads the agricultural area and the number of livestock Based on these figures this evaluation was done considering the following assumptions 25 no adjustments were made in the number of livestock an increase of 22 to take place in year 2 in the overall agricultural area for key agricultural products in the area of influence of the sub projects no adjustments were made to the costs of production for either agricultural or livestock related products no adjustments were made to the agricultural yields or to farm prices average rehabilitation cost of US 12 813 per km average routine maintenance cost of US 647 per km per year program network length of 5 018 km for a total investment of US 64 29 million a discount rate of 1496 that was the prevailing discount rate in Peru during project implementation A high
228. t opportunities though access to social services is also mentioned Table 15 Local stakeholders and households perception of rural roads activities percent Effect Generation Generation 2004 2000 Total Rural Roads Tracks 2004 2006 2004 2006 2004 2006 2004 2006 Local stakeholders perception of rehabilitation works Satisfactory 79 76 67 TT 62 8 84 60 Non Satisfactory Use of less quantity materials than needed 39 60 27 45 30 50 0 36 Use of less quality materials than needed 44 50 28 Sree 32 54 Q0 57 Some segments were not rehabilitated 24 BEE 25 63 26 60 14 50 Inadequate bridges 27 53 30 45 34 46 43 Other infrastructure missing 32 5 40 65 43 TRE 14 43 Other reasons 20 8 18 18 19 8 14 36 Local stakeholders perception of maintenance activities Satisfactory 72 74 69 69 68 75 71 472 Non Satisfactory Microenterprise not working 17 68 21 48 27 50 0 44g Microenterprise disorganized 260 twr 10 44e 13 41 O 50 Microenterprises members Do not know about road maintenance 24 41 12 28 16 31 0 22 Spend less time than needed 43 41 9 salons 11 53 0 28 Do not fulfill their contract 37 46 7 BUTS 9 28 0 Barm Other reasons 26 18 24 28 27 25 15 33 Households perception benefiting from better transport 72 72 57 T2 60 74 47 5 thanks to road rehabilitation 62 69 50 69 54 71 37 6 Benefits associated with rehabilitation Better access t
229. t per Estimated Cost The review of 277 improvement of non motorized tracks projects shows that the average unit costs estimated on the feasibility studies for the improvement of tracks is US 2 500 per km the average contract costs is US 2 630 per km and the average actual costs is US 1 900 per km Contract costs are 5 higher than estimated costs and actual costs are 38 lower than contract costs The review of 231 periodic maintenance contracts shows that the average contract costs is US 13 963 per km and the average actual costs is US 14 505 per km Actual costs are 4 higher than contract costs A review of 2 180 routine maintenance contracts covering 49 640 km of routine maintenance works over 6 years shows that the average contract costs is US 502 per km year and the average actual 64 costs is US 647 per km year Actual costs are 29 higher than contract costs due mainly because the duration of the contracts has been expanded The ex post economic evaluation considered the results of the 2006 impact evaluation study that evaluated the impact on roads rehabilitated or improved between 2004 and 2006 The study shows a big impact of the project on the network condition table below Travel times on rural roads reduced by 30 and travel times on non motorized tracks reduced by 58 The number of months with road closures on rural roads reduced by 11 The average travel speed before road works is 15 2 km per hour on rural roads and 5 5 k
230. t performance Project s high economic efficiency see above Results from final impact evaluation surveys illustrated project benefits in terms of improved transport conditions increased access to social services for rural roads and increased income for rural households for NMT tracks While ultimate impact on rural poverty is less measurable than initially anticipated except for NMT tracks important lessons were drawn in terms of how improved 26 rural transport modifies the living conditions of the rural poor These conclusions need for greater complementarities with other types of interventions like rural infrastructure were integrated in the design of the follow on operation Decentralized Rural Transport project e Institutional arrangements to ensure project sustainability and in particular the micro enterprises for road maintenance MEMV and the Provincial Road Institutes PRI e Contribution to the decentralization process through i enhancing the planning capacity at the local level while empowering rural stakeholders ii improving municipalities management capacity with the PRIs and iii fostering greater municipal cooperation at the provincial level thus overcoming the fragmentation of Peru s municipal sector e The Project inspired other reforms initiated in the transport sector in Peru In particular the MEMV road maintenance model was experimented by Provias Rural on 2 706 km of connecting secondar
231. tantly supported the transfer of responsibilities to decentralized entities because it was perceived as a loss of power from the central level Provias has refocused its strategic role as a facilitator of the decentralization process formalized through specific agreements convenios signed with municipalities Provias also partnered with knowledge institutions engineering schools and universities think tanks like Grade and Cuanto with the objective of improving processes technical standards monitoring program of monitores viales and impact evaluation Another strategic partner has been Caritas Peru which successfully handled the implementation of the Local development Window More recently Provias has signed a Memorandum of Understanding with other institutions involved in rural infrastructure with the objective of promoting complementarities across the various sectors and enhancing effectiveness through concerted or combined interventions This partnership will be furthered by the follow on project which includes a rural infrastructure pilot Key factors negatively affecting project implementation included Fiscal constraints Fiscal impact constraints have delayed implementation requiring two extensions of the closing date to be processed These constraints Given the cost effective technical solutions gravel roads and the sustainability arrangements routine maintenance promoted by the project MEF agreed that the entire pro
232. tas provinciales La transferencia de la gesti n del mantenimiento rutinario a los gobiernos locales se produce a partir de la publicaci n de los dispositivos legales en materia de Descentralizaci n y Transferencia como son el D S N 036 2003 PCM y D S N 088 2003 PCM mediante los cuales se da inicio al proceso de transferencia de la gesti n vial y de recursos En el aludido D S N 088 2003 PCM se dispone la preservaci n del sistema de mantenimiento de los caminos vecinales basado en la promoci n capacitaci n y contrataci n directa de las microempresas de mantenimiento vial conformadas por pobladores del medio rural y por lo tanto con car cter de excepci n y por un per odo no mayor a la duraci n del Programa Caminos Rurales que ejecut PROV AS DESCENTRALIZADO en tanto se desarrolle los mercados de trabajo y las formas de 105 contrataci n establece la permanencia y continuidad contractual con las microempresas de mantenimiento vial que ven an realizando el mantenimiento vial rutinario a cargo de Programa autorizando a los Gobiernos Locales IVP a contratar en forma directa a las Microempresas ya existentes o las que se promociones en el futuro Los esfuerzos del Programa se orientaron no s lo a las inversiones en vialidad como ya se mencion sino al Fortalecimiento Institucional dirigido a reforzar las capacidades t cnicas y administrativas de los gobiernos locales comenzando por una participaci n activa en el
233. tenimiento rutinario el cual es perenne En este componente se presenta la problem tica del cambio de modalidad en la contrataci n de las microempresas ya que se tiene autonom a para seleccionar y contratar personas no calificadas poniendo en riesgo la capacitaci n efectiva ya realizada Para ello es necesario que cada Gobierno Local establezca claramente sus bases y los procesos de contrataci n haci ndolos mas accesibles y claros a los microempresarios a fin de poder preservar el sistema existente DESCRIPCI N Y LOGROS CON RELACI N A LOS OBJETIVOS VIALES Y FUNCIONALES mejorar y consolidar la transitabilidad de los caminos rurales y mejorar la conectividad y accesibilidad de la poblaci n rural La rehabilitaci n de los caminos rurales consiste en una intervenci n de car cter eminentemente estructural que incluye la correcci n de fallas mediante la reposici n de la superficie de rodadura destinada a adaptar la plataforma a las necesidades del tr nsito as como la construcci n de obras de arte y drenajes para asegurar una ptima transitabilidad Comprende las actividades de Estudios Obras y Supervisi n El costo promedio en conjunto es de 17 300 00 d lares por kil metro Se realiza a trav s de contratistas locales y regionales contratados mediante procesos de selecci n de acuerdo a ley En cuanto al mantenimiento de los caminos vecinales tradicionalmente y por muchos a os las carreteras y caminos del pa s se
234. teractive map accessible through special mapping software For each road the following details are available national ID number if registered this number is provided by the MTC condition surfacing type length width and the type of land the road is crossing In addition pictures and characteristics of bridges as well as distances between villages are also available Other features can be added if needed However NMT are not registered by this system because of their large number and their changing nature Source Provias Descentralizado 6 2 Developing Community Based Micro Enterprises for Road Maintenance This activity relates to the technical assistance provided to establish and strengthen micro enterprises performing routine road maintenance on rehabilitated roads see also Component 2 An important aspect of this technical assistance has been the recruiting of road monitors monitores viales These recently graduated young engineers economists or social scientists were contracted by Provias Descentralizado for a period of one year Each of them has been working with 4 or 5 micro enterprises with the objective of 1 monitoring road conditions and maintenance activities 11 providing technical assistance and coaching to micro enterprises e g technical aspects of maintenance safeguards aspects entrepreneurial capacity and iii as needed bringing targeted social help e g teaching how to read to communities At
235. the three phase program had on the rural transport conditions access to basic and social services transaction costs employment local and regional economies socio economic conditions and poverty in rural Peru More specifically the following positive impacts were highlighted see Annex 7 e The Second Rural Roads project constituted a very creative and innovative response to the challenges that rural Peru was facing and to the urgent needs of its rural population Its design stuck to the reality and to the specificities of rural areas and made this project participative sustainable supportive of the decentralization process and complementary to existing initiatives e The project has been inclusive and has involved the most vulnerable and the poorest segments of the Peruvian rural population In particular it provided jobs and sustainable revenues to a substantial number of rural poor and it promoted the participation of women in entrepreneurial activities mainly through micro enterprises and the LDW Women empowerment has proved to have a major impact on family life and in particular on the nutrition and education of children e The project and more broadly the three phase program contributed to change the Peruvian old habits regarding rural roads management The promotion of the triptych construction rehabilitation maintenance has helped to substitute the old vicious circle by a new virtuous rural roads management life cycle where a we
236. them to regional centers and about 3 000 km of paths for non motorized transport This first phase demonstrated that the rehabilitation of rural road infrastructure when immediately followed by sustained maintenance performed through community based organizations was a cost effective way of restoring basic rural accessibility and could stimulate poverty alleviation in the rural highlands of Peru Rural communities realized that without maintenance and regardless of how well roads were rehabilitated passage is compromised and with it a wide array of services that affect their social and economic livelihood This first phase also provided important insights into the constraints faced by central agencies to implement rural development programs The Second Roads Project was built on the impressive results of the first rural roads project with the aim to deepen the impact of its activities in the same 12 departments The project aimed to focus investments in areas with high levels of poverty and emphasized labor intensive maintenance methods as a means to generate employment in those areas In this manner the project would help improve the access of rural communities to markets on and off farm economic opportunities and social services thereby bringing these communities into the economic mainstream the essence of any poverty alleviation program The project also aimed to strengthen the institutional and financial sustainability of rural road mainten
237. tion and periodic maintenance activities the main results of the project were presented e g km of roads rehabilitated and it had been mentioned that this second road project had exceeded its initial targets for both components Moreover good road rehabilitation technical standards in line with rural population needs have been applied leading to good road conditions when followed by proper rehabilitation e The routine road rehabilitation component was also presented Once the general figures had been stated one had emphasized on the efficient maintenance mechanism that has been implemented relying heavily on micro enterprises and had stressed out the positive participation of women in these activities e The river transport improvement pilot and its results had also been presented as well as the lessons learned during these five years including the need to work in a coordinate manner with regional and local authorities and the technical challenges of rehabilitating roads in a rain forest e Regarding the LDW after a presentation of key results speakers focused on two specific initiatives a fishing farm in the Sauce lake and caf producers in Pamashito Lamas Main lessons are that 1 transferring resources is not enough and must be accompanied by a transfer of capacity ii rural roads investments have a greater impact when this type of support to entrepreneurship activities is provided iii participation of women has a positiv
238. tion of the last 6 months under the Garcia administration The project strongly benefited from the priority given to decentralization under the Toledo administration Perspectives under the Garcia administration remain positive given the focus on infrastructure regional development decentralization and rural growth as illustrated for example by the Sierra Exportadora program However the austerity measures imposed by the new administration caused the cancellation of an international seminar on rural transport that was scheduled to be held in Lima in October 2006 This cancellation was an unfortunate loss of opportunities to disseminate results and share experiences with other countries from LAC and other regions In August 2006 five months before completion the new Peruvian Minister of Transport decided to merge Provias Rural and Provias Departamental into Provias Descentralizado The transition is still in process and is made complicated by the necessary restructuring and contraction of staff phasing out of Provias Departamental s force account activities in particular However the merging is expected to bring significant benefits in the medium term with in particular greater synergies between the decentralization processes at regional and local levels Monitoring and Evaluation M amp E Design Implementation and Utilization The PDO and the three specific project objectives have been monitored through a framework of indicators specif
239. tistical significance a sensitivity case was performed adding the benefits of the livestock increase to the benefits of the increase in agricultural area 22 The sensitivity case yields an ERR of 35 and a NPV of US 81 48 million Considering the same ex ante producer s surplus benefits but adopting the actual investment and maintenance costs yields an ERR of 27 and a NPV of US 48 48 million The ex post economic evaluation shows that the rehabilitation of rural roads component was well justified considering the actual investment costs and the updated assumptions on the producer s benefits The ex post net benefits are higher than the benefits evaluated at appraisal due to the lower actual road works costs and the higher than expected impact of the project on the area of agricultural production Cost Effectiveness Analysis The CEA of rural roads presented at the feasibility studies yields an average cost per beneficiary indicator of US 46 per person The ex post analysis considering the contract costs yields an average cost per beneficiary indicator of US 60 per person and considering the actual costs yields US 62 per person The CEA of non motorized tracks presented at the feasibility studies yields an average cost per beneficiary indicator of US 27 per person The ex post analysis considering the contract costs yields an average cost per beneficiary indicator of US 29 per person and considering the actual costs yields US 25 per person T
240. tos rurales d Constituir un foro de an lisis y de propuestas para impulsar el desarrollo de los mbitos rurales pobres que tienen potencial para desarrollar actividades econ micas rentables a partir de sus propios recursos e Coordinar y prestar servicios articulados a la implementaci n de los proyectos productivos que se orienten a la calificaci n tecnol gica y a la gesti n empresarial competitiva de los productores y a la formalizaci n empresarial de sus organizaciones f Implementar un banco de datos de proyectos y perfiles de proyectos de desarrollo productivo y social elaborados en los mbitos rurales pobres del pa s g Llevar un archivo inform tico de informaci n econ mica productiva y de mercado de los mbitos rurales regionales y distritales con potencial econ mico productivo identificado La estrategia de intervenci n de VDL enfatiza en la formulaci n de proyectos productivos creando condiciones para un desarrollo econ mico y social que a la vez que generen puestos de trabajo e ingresos incrementen la rentabilidad socio econ mica de la inversi n realizada en los ejes viales rehabilitados y transferidos a los gobiernos locales generando bienestar y abriendo rutas al desarrollo El inter s de VDL en la formulaci n de los proyectos productivos est en poner en el centro de la atenci n del sector privado y de las organismos de desarrollo la existencia de oportunidades de inversi n en mbitos de pobreza que
241. transport projects to allow access to river and terrestrial transport including the construction of wharfs 11 Rehabilitation of rural roads that link towns to river access and productive areas and iii Improvement of rural roads and NMT tracks that allow villages access to the rural roads and to the wharfs Due to the lack of former experiences in the Selva region the PPS aimed at assessing methodologies as well as processes related to all aspects of project implementation The final objective of the PPS was to extract lessons and assess its potential for replication in other parts of the Peruvian Amazon basin To implement the pilot Provias Descentralizado worked hand in hand with the governmental research institute specialized in the Amazon basin Instituto de Investigaciones de la Amazonia Peruana or which provided social supervision to the project The PPS was carried out following best practices standards including the preparation of an in depth Socio Environmental Study ESS and Action Plans by a consortia compounded by one environmental and two social firms The ESS included a socio economic assessment as well as physical and biological evaluations while the Action Plans included Indigenous Peoples Plans an environmental protection plan and a monitoring and evaluation plan The studies were made with the intense participation of the local communities Indigenous and settlers as well as the involved municipalities and the regi
242. ts of the former Rural Roads Rehabilitation and Maintenance project and on the results of the 2000 impact evaluation This evaluation led in particular to the concept of the Local Development Window to enhance complementarities between transport and entrepreneurial initiatives and accelerate the effect on reducing rural poverty Finally quality at entry was enhanced by the multiple consultations and participatory processes involving local stakeholders and vulnerable rural populations e g women These consultations illustrated the relevance of Non Motorized Transport NMT infrastructure to target the poorest and most vulnerable segments of the rural population The gender action plan was also prepared in this context to enhance benefits for poor rural women through greater empowerment and direct participation in some project components Local Development Window micro enterprises for road maintenance 3 2 Achievement of Project Development Objectives 22 The project aimed at improving the access of the rural poor to basic services market integrating infrastructure and income generating activities with gender equity to help alleviate rural poverty and raise the living standards of rural communities The three impact evaluations that were performed illustrated the effects that improved rural roads help rural population access basic services particularly education according to the 2006 evaluation school enrollment for boys aged 12 18
243. tuidas durante la segunda etapa son mujeres es descentralista en respuesta a la realidad del pa s y al desaf o que representa la diversidad de preferencias de comunidades con entornos f sicos y sociales muy distintos entre s Impulsa la generaci n de capacidades en el mbito de la provincia a trav s de la creaci n de los Institutos Viales Provinciales IVP que son la organizaci n especializada que asume la gesti n del transporte en su mbito Tiene un enfoque evolutivo ya que la dotaci n de infraestructura sostenible implica desarrollo institucional cuya instalaci n y maduraci n conlleva a la consideraci n de horizontes temporales amplios de mediano y largo plazo As el modelo de intervenci n descrito al incrementar la capacidad y recuperar la transitabilidad de las redes viales prioritarias genera los siguientes impactos permite integrar al rea rural reducir costos log sticos promover la movilidad de bienes y personas favorecer accesos a servicios p blicos y oportunidades econ micas desarrollar ciudades intermedias y apoyar el desarrollo de actividades productivas y sociales que redundar n en la aparici n de econom as de escala y aglomeraci n es decir la creaci n y desarrollo de mercados METAS FISICAS ALCANZADAS La segunda etapa se caracteriz tambi n por haber superado las metas f sicas previstas en rehabilitaci n de caminos vecinales y mejoramiento de caminos de herradura Una de las razones fue e
244. ubprojects to be supported under the PPS several workshops were carried out in six areas These included representatives from the Indigenous communities and local authorities Three areas were identified productive activities social infrastructure and capacity building a Productive activities fish farms in Lake reforestation with native species in Masisea Iparia and Tahuania re population with native fish species in the lakes of Tahuania Islas Canarias and Masisea development of tourist facilities in Lake Imiria Technical assistance for sugar cane production in Iparia b Social infrastructure projects for drinkable water and rural electrification in Masisea Improvement of the health services in Masisea Iparia and Tahuania c Capacity building Creation of the Community Reserve in Lake Imiria The project on rural electrification and the improvement of health services in Tahuania have been delivered by the Regional Governments The PPS commitment was to support the local authorities in their efforts to coordinate with the government sectors relevant to the projects listed above not to directly finance their implementation Provias Rural considers that these initiatives should be part of Ventana del Desarrollo because the PPS is still under implementation and this situation provides an opportunity to further support them 54 An unexpected outcome has been the increase of private investment in the area Masisea
245. uctive areas thanks to better transport conditions An important effect was also found on the price of irrigated land in the case of rural roads 77 Better motorized transport conditions might increase the possibility for more mechanized intensive agriculture resulting in a greater attractiveness of irrigated land However in the long term generation 2000 this effect does not seem to sustain Another long term effect found is the reduction of horses owned by rural households The impact of better roads on the traffic of motorized vehicles may in the long term reduce the need for animal based transport Finally in the case of rural roads it seems that households had a better access to credit services as measured by the number of applications The impact on the households who actually got a credit is however not statistically significant Table 13 key effects on agricultural forestry activities double difference percent Effect Generation Generation 2004 2000 Total Rural Roads Tracks Cultivated area 10 10 22 15 Expenditures per cultivated forest area 31 2 3 7 1 5 62 3 Net income per cultivated forest area 12 3 24 0 57 6 o 88 2 Irrigated land value per area 52 o 10 41 0 16 Dry land value per area 5 17 17 26 Owned horses 50 9 20 0 Households who asked for a credit and 4 7 12 8 15 0 e 0 0 received an answer negative or positive Households who received a
246. urar el 100 de la transitabilidad de los caminos Para ello es necesario la sensibilizaci n y cooperaci n de los Gobiernos Locales respecto a la necesidad del mantenimiento de los caminos y la continuidad en la gesti n de los Institutos Viales Provinciales para propiciar el desarrollo de sus capacidades contando con los conocimientos necesarios y el personal debidamente calificado a fin de lograr una optima gesti n vial descentralizada Cabe resaltar que existen logros sociales derivados de la ejecuci n del programa lo que constituye el impacto socio econ mico del cual podemos mencionar la generaci n de 6 138 empleos directos permanentes 49 000 empleos directos temporales obras reducci n de los costos de transporte en un 20 disminuci n en el tiempo de viaje aumento en la cantidad de veh culos en transito mayor acceso a servicios b sicos como salud y educaci n facilitaci n del comercio con otras localidades entre otros Con relaci n a los objetivos Financieros 104 asegurar la sostenibilidad financiera del mantenimiento de los caminos rurales con participaci n de los gobiernos locales En la segunda etapa como parte de su objetivo institucional PROVIAS DESCENTRALIZADO involucra a los Gobiernos Locales en la participaci n financiera del mantenimiento vial rutinario cofinanciamiento bajo el sustento que los caminos rurales son su responsabilidad y competencia dado que los Municipios y las poblaciones a quienes
247. ure Med Long Diversificat Low Low Employment Type of occupation Med Long Variation Low Low Occupation category Med Long Variation Null Null Productive activity Med Long Variation Null Null Agricultural day s wage Medium Increase Moderate Moderate Labor force structure Med Long Variation Low Low 81 Migration No of migrants Med Long Decrease Null No of returning migrants Med Long Increase Low Poverty Poverty levels Long Decrease Null Institutions No of new institutions Short Med Increase Moderate Road safety of traffic accidents Short Increase Low Environment Use of land Medium Increase Low Use of chemicals Medium Increase Null Deforestation Short Med Increase Low Null Low Low Moderate Low Null Null Low N A Not Available After the second evaluation was conducted an interpretation was proposed that the dynamics of rural roads programs benefits would follow the following sequence 1 short term effect on improved transport conditions 11 mid term outcomes in terms of improved human capital through access to social services and greater productivity of the rural economy cheaper inputs greater productive time easier access to markets and 111 ultimate long term impacts in terms of higher income and reduced poverty see Figure Figure 6 proposed dynamics of rural roads programs benefits after 2 evaluation Output Access improved Impact of intervention High
248. utional strengthening and has gained capacity for the last 11 years It has been so successful that Provias Rural and Provias Departamental were merged in 2006 into one single entity Provias Descentralizado adopting Provias Rural s structure and processes Some additional institutional strengthening will be provided in the next operation including the preparation of a plan turning Provias into a regulatory entity With greater decentralization local elites may capture the benefits of certain elements of the program e g microenterprises PRIs and weaken them Moderate The institutions developed under the program microenterprises PRIs have existed for a long time and are subject to control mechanisms broadly involving local stakeholders that reduce the risk of elite capture For example microenterprises are subject to the control of the local population the road monitors their socios and of the local governments through their PRI The PRI are under the authority of the provincial road board and supervised by Provias through its unidades zonales The plan piloto selva is no longer considered as one of the priorities Moderate Successful results and lessons learned have been disseminated in particular the efficiency of the model finally adopted and the increase of private investment in the implementation area The plan will still be considered as a priority for the following reasons a some works are still b
249. ve and negative changes as a result of each location was to take place at two levels Satellite imaging would be used for monitoring changes at a regional or meso level such as land use deforestation fire points and agricultural crops Surveys interviews with focus groups and community workshops would be used for monitoring local changes and conflicts at an intra and inter village level The system envisaged intense involvement of civil society community organizations and the population at large in the planned monitoring activities Component 6 Institutional Development This component aimed to further develop the institutional building program started under the first phase and was organized into the following four streams 1 Improving rural transport policy and strategies at a central level The project would strengthen MTC s capacity to 1 formulate a policy framework and strategy for rural transport infrastructure and services consistent with the progress made on the decentralization and poverty reduction agendas and the various regulations mandated by the Transport Law approved in October 1999 ii engage in a collaborative dialogue with other Ministries on national priority themes whose domain cuts across sectors 1 decentralization poverty reduction iii program investments in coordination with other agencies within and outside MTC including those in charge of poverty reduction programs especially relevant for the proje
250. were left in deplorable condition due to lack of regular maintenance Provias had already rehabilitated about 2 300 km of primary and mostly secondary roads during the first phase of the Peru Rural Roads Program so the 350 km planned under the project consisted of carefully selected roads that were critical to integrating into consolidated networks all the roads restored under the program Most of the works were to be contracted out to small local contractors to make use of the labor force available from and to increase farm incomes for the benefited communities during periods of reduced agriculture activity notably between March and September in the Sierra which is the dry season when most of the works were to be carried out Component 2 Routine and Periodic Maintenance of Rural Roads and Connecting Primary and Secondary Roads This component sought to give continuity to and further strengthen the routine maintenance system set up during the first phase of the program It entailed maintaining about 11 300 km of roads at the beginning of the project to about 13 495 km at the end of the project The road network in most of the Sierra region first had to receive rehabilitation before maintenance activities could begin Subsequent routine road maintenance would consist of simple works regularly performed throughout the year to maintain the drainage systems ditches culverts vegetation and the running surface filling potholes and ruts maintaining
251. wing advice for the design of the rural roads program 1 a strong government commitment and beneficiary participation in defining priorities and funding for maintenance to ensure the sustainability of services and infrastructure ii a central focal point should be established for formulating and reviewing rural roads policy for project planning and execution and for coordination between the Ministries of Agriculture Interior and Transport iii a strong and dedicated 12 project management team should be created to assure timely implementation adequate monitoring of the project iv the capacity for labor based methods and intermediate means of transport should be developed v the methodology to screen road subprojects should be agreed with the Borrower and based on sound economic analysis including social benefits estimation and cost effectiveness approach for basic access and vi a system to monitor the benefits of road subprojects during and after implementation of the project should be established early in the implementation period Linking poverty with transport operations also became a strong underlying objective of the road program following the realization that transport operations can contribute to poverty reduction both through direct or indirect approaches Lessons from the first phase of the road program The overall success of the first phase of the road program combined with strong support from the various levels of
252. y members women children to cultivated areas where they can therefore 76 contribute to productive activities Thus NMT tracks seem to create employment opportunities that should help raise households income but mostly under the most informal types of employment relations unpaid family work On the other hand the effect of rural roads investments is different they seem to helping rural populations move from informal jobs unpaid family workers to formal ones private workers and public employees It could be interpreted as a facilitated access of rural workers to more urbanized areas with greater employment opportunities in the formal sector Better roads might also facilitate the development of public services in rural areas explaining the increase of the proportion of public employees e g teachers Job opportunities created under the micro enterprises program to ensure routine road maintenance might contribute to that effect Another feature is the decrease of cattle breeding activities which may be interpreted as a modification of households strategy for savings assets as a protection against possible future adverse events see below Table 12 key effects on employment double difference percent Effect Generation Generation 2004 2000 Total Rural Roads Tracks Employment situation Dependent 0 1 0 5 0 7 0 2 Independent 1 1 0 0 3 0 8 8 Unemployed 0 3 0 3 0 3 0 5 Non active 1 1 1 0 1 8 9
253. y roads Only 58 are still being financed directly by Provias Descentralizado and 6 have been directly created by the Provincial Road Institute of Arequipa The transfer of the financing of the micro enterprises made in 2003 represents an annual cost of US 1 5 million for 2 850 km Similarly the transfers made in 2004 2005 represent an annual cost of US 6 3 million for 7 678 km of rural roads for which 40 percent is financed by local governments from their own resources The rest was financed by the program through a specific intergovernmental transfer to local governments In 2006 this transfer was made permanent thus ensuring the sustainability of the maintenance mechanism The project also financed the periodic maintenance of 8 598 km of rural roads Most of these roads had been rehabilitated under the Rural Roads Rehabilitation and Maintenance Project 48 The combination of routine and periodic maintenance helped optimize the life cycle of rehabilitated rural roads It also demonstrated that the gravel rehabilitation standards can be sustainable and be a cost effective alternative to paving see Box 2 Box 2 Life cycle of a rural road near Cusco The 2 Rural Roads project constitutes the second phase of a broader rural roads program which was initiated 12 years ago with the Rural Roads Rehabilitation and Maintenance Project first phase Some roads which were rehabilitated during the first phase received periodic mainte
254. y roads which were then transferred to regional governments The model was then streamlined through another Bank supported operation Regional Transport Decentralization project The micro enterprises model is also currently being adapted to the national network within a program financed by the IaDB e Positive spillover effects from other project components employment generation from MEMV results of gender action plan effect of LDW and MEMV on enhancing entrepreneurial capacity in rural areas lessons drawn from Plan Piloto Selva e Learning process initiated through the Project s sound M amp E framework that was retrofitted in the design of follow on operation 3 5 Overarching Themes Other Outcomes and Impacts a Poverty Impacts Gender Aspects and Social Development Poverty The project had two poverty related initial objectives 1 Overall reduction of poverty and extreme poverty by 1 0 and 2 0 percentage points respectively and 2 overall reduction of the poverty gap by 1 5 and 2 2 percentage points in areas served by the rehabilitated rural roads and non motorized tracks respectively This was not an over ambitious objective considering that many poverty focused programs in Peru display poverty reduction targets of 5 percent or more in targeted areas According to the final impact evaluation survey between 2004 and 2006 poverty decreased by 8 7 percentage points in areas benefiting from NMT tracks statistically significa
255. y the provincial mayor and include district mayors and representatives of different communities associations enterprises or professions The goal of the participatory plan was to strengthen the road planning capacity of local authorities in a way that favored the decentralization process by prioritizing all road investments which were to be made in the province in line with the vision that the provincial council had for developing the province The process to prepare this plan has been divided in seven steps The first two steps were preparatory activities such as the organization of workshops with municipalities or associations or the preparation of a work program and the collection of information The third step was a provincial diagnostic which analyzed different aspects of the initial situation of the province such as its demography its economy its social aspects or its road environment The fourth step was the prioritization of investments through a matrix which constituted the first main output of the plan This matrix ranked the different rural roads there is another matrix for NMT through a process which took into account several criteria divided in five groups spatial economical social technical and natural resources Each criterion had a given weigh approved in advance by the local council so as to avoid any further protest The fifth step was the planning of objectives and the carrying out of a strategy for road network management T
256. yond those directly involved in the project An active policy dialogue was sustained between the two banks and Provias as illustrated in extensive aide memoires which allowed monitoring results re orienting policies and seeking enhanced impact through constant innovation An example of such innovations that were introduced during implementation as a result of this policy dialogue is the design of specific road rehabilitation standards for the Selva caminos vecinales menores and the revision of the road planning methodology More broadly the banks brought new concepts and ideas e g gender M amp E rural infrastructure during implementation through analytical work and targeted advisory services The Bank has been particularly active in the analysis of complementarities between roads and other types of rural infrastructure interventions This analysis as well as the related recommendations were summarized in a specific ESW Peru Rural Infrastructure 36 Strategy Effectively Underpinning Local Development Fostering complementarities published in 2006 Theses recommendations led to the design of the rural infrastructure pilot in the follow on operation Decentralized Rural Transport project Finally the project team was proactive in dealing with the reduced disbursement levels observed in 2005 through the processing of an amendment in coordination with the IaDB to modify the pari passu between the two banks in orde

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