PROGRAM INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Report No.: AB7091
Project Name
Region
Sector
Operation ID
Borrower(s)
Implementing Agency
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Approval
FIRST PROGRAMMATIC PRODUCTIVE AND
SUSTAINABLE CITIES DEVELOPMENT POLICY LOAN
(DPL)
LCR
Sustainable Development Sector (100%)
P130972
Republic of Colombia
Ministerio de Hacienda y Crédito Público (Ministry of Finance
and Public Credit - MHCP)
July 05, 2012
TBD
TBD
1. Key development issues and rationale for Bank involvement
The efficiency and productivity of Colombia’s urban system will be a key determinant in
the ability of the country to transition from a middle to a higher income economy. Urban
activities are an important factor in the Colombia’s growth. Economic growth is strongly driven
by commodities in Colombia and other Latin American countries. However primarily urban
activities in manufacturing, services and retail sectors also account for an important part of
economic growth. Urban activities combined1 have contributed to more than 50 percent of
GDP’s growth rate2 in the last four decades.
Challenges persist to secure sustainable, productive and inclusive cities in Colombia. Safe
and more efficient public transportation is vital to secure mobility, access to opportunities, and
productivity in cities. Deficits in public space and low income housing present serious challenges
for security and quality of life. Persistent inequality in access to public services such as water
and sanitation must be addressed. Improved disaster risk management in land planning is key to
mitigating the risks and reducing the high social and economic costs of natural disasters. The
quantitative and qualitative housing deficit must be met. Better inter-jurisdictional coordination
can help to spread the benefits and diminish negative externalities associated with urbanization.
Improved connectivity is vital to support increased productivity and trade, and help support a
more efficient system of cities. These challenges are outlined in greater depth below.
2. Proposed objective(s)
The proposed operation is for US$100 million. This program has been designed to support
Colombia’s National Development Plan 2010-2014 covering three policy areas (See Table 1).
The program objective is to support the strengthening of the Government of Colombia’s
policy framework on productive and sustainable cities, specifically, policy and regulatory
1
Commerce, restaurants, hotels, manufacture, financing and other services to support among others
Urbanization Review calculations based on a moving average of the component of the economy’s growth rate
contributed by purely urban activities.
2
reforms that aim to: (a) improve access to basic water and sanitation, urban transport and
environmental services for the urban poor; (b) mitigate the vulnerability of the urban poor to
natural disasters and promote the provision of affordable and safe low-income housing solutions;
(c) strengthen the ability of subnational entities to coordinate and finance the structuring and
implementation of regional and metropolitan development initiatives; and (d) improve the
productivity of the system of cities through improved connectivity within the network of cities
and between cities and ports to external markets.
3. Preliminary expected outcomes include:
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More large cities with minimum standards for DRM assessment guidelines in land use plans
Increase among very poorest residents who are connected to neighborhood water and
sanitation networks in large cities
Increase in availability of public spaces in large cities
Reduction in road fatalities in large cities
Increase in number of low-income families with access to affordable and safe housing
More regional Contract Plans signed between territorial entities with development objectives
that benefit lower-income segments
Number of urban PPPs structured
Number of intra-urban road construction and maintenance concessions structured
4. Preliminary description
The operation is designed as a programmatic series of two Development Policy Loans which aim
to support the strengthening of the Government of Colombia’s policy framework on productive
and sustainable cities.
Table 1: Matrix of Prior Actions for the Programmatic Sustainable and Productive Cities
Development Policy Loan Series
Medium-term
Phase 1- Prior Actions
Objective
Policy Area 1: Sustainable and Inclusive Cities
Establish a multiPrior Action 1: Creation by
sector policy
Presidential Decree of the Subframework that aims
Directorate for Regional and
to increase the
Subnational Planning within
productivity,
National Planning Department.
sustainability and
(Decree TBD of 2012)
inclusiveness of
Colombia’s system of
cities.
Facilitate improved
Prior Action 2: Facilitate water
access to basic
and sanitation network
services for low
connections for low-income
income households
families through the regulation
across Colombian
through Ministerial Decree of
cities.
subsidies for household water and
Phase 2 – Indicative Triggers
Policy Trigger 1: Approve a
CONPES national policy
document for strengthening the
efficiency and sustainability of the
Colombian ‘System of Cities’.
Policy Trigger 2: Revision of
Decree 3200 of 2007, updating the
Departmental Plan framework for
the provision of investment to poor
small and medium cities to deepen
the coverage and quality of water
.
sanitation connections.
(Ministerial Regulatory Decree
1350 of 2012)
Prior Action 3: Increase urban
and inter-urban road safety
through the approval by
Ministerial Resolution for a
National Road Safety Plan.
(Ministry Resolution 1282 of 2012
– National Road Safety Plan 20112016)
Increase the
environmental
efficiency of
Colombian cities with
stronger risk
management systems
and an improved
framework for urban
environmental
management, urban
redevelopment and the
creation of public
space.
Prior Action 4: Strengthen the
regulatory framework for
integrated transportation planning
in medium-sized cities.
(Ministerial Regulatory Decree for
Strategic Public Transport Systems
– SETP).
Prior Action 5: Regulate
minimum criteria for natural risks
assessment and disaster risk
management incorporation in
municipal land use management
plans (POTs). (Ministerial Decree
TBD of 2012)
Prior Action 6: Approve national
policy guidelines to promote the
creation of public spaces in urban
areas (CONPES 3718 of 2012 –
National Policy on Public Spaces)
Prior Action 7: Creation of a
National Urban Redevelopment
Company to support the
structuring of urban
redevelopment projects.
(Presidential Decree 4184 of 2011
– National Urban Redevelopment
Company- EMBARCO).
Policy Area #2: Access to Affordable Housing
Increase access to
Prior Action 8: Approve Law
affordable housing for renewing national housing
low-income
program to increase the supply of
households.
affordable market-rate housing
solutions. (Law 208 of 2011 -
and sanitation services.
Policy Trigger 3: Approve
CONPES national policy
document detailing the creation of
a new legal framework for urban
transport demand management.
Policy Trigger 4: Approve
CONPES national policy
document that lays out the
National Policy for Integrated
Public Transport Systems.
Policy Trigger 5: Revision of
Mass Transit Law 86 of 1989 and
Law 310 of 1996.
Policy Trigger 6: Regulate
through Ministerial Decree a
methodology for identifying
municipal inventory of at-risk
human settlements.
Policy Trigger 7: Regulate
through Ministerial Decree
regulating urban noise pollution
from fixed and mobile sources.
Policy Trigger 8: Approve
Ministerial Decree regulating Law
208 of 2011 to define municipal
fiscal responsibilities and benefits
involved in implementing National
Macroproyectos National Social
Interest Housing Program)
Macroproyectos of Social Interest
Housing Program Law.
Prior Action 9: Regulate through
Ministerial Decree the provision of
residential leasing and lease-toown subsidies targeting families in
the informal sector. (Ministerial
Regulatory Decree 3911 of
February 2012 – Residential
Leasing Program)
Policy Trigger 9: Approve
Ministerial Resolution regulating
Law TBD of 2012 to define
framework for social and
condominial management of
public housing assets.
Prior Action 10: Approve Law
establishing a national policy for
the provision of public housing to
the extreme poor. (Law 1537 of
June 2012 – Law of Access to
Affordable Public Housing)
Policy Area #3: Institutional Strengthening and Regional Coordination
Increase inter-urban
Prior Action 11: Approve Law on Policy Trigger 10: TBD.
and regional
Territorial Planning permitting
(Regulatory Decree on Specific
coordination on
subnational entities to establish
Issues in the Municipal Land Use
strategic development partnerships that facilitate
Management Law – TBD)
initiatives through the regional-level planning and
approval of fiscal
implementation. (Law 1454 of
Policy Trigger 11: Consolidate
incentives and
2011 – Organic Territorial Land
the municipal governance structure
coordination
Use Planning Law)
to increase inter-municipal
instruments.
coordination in de facto
Prior Action 12: Approve
metropolitan areas through a
Ministerial Decree regulating
metropolitan areas law.
‘Contract Plans’, an administrative
figure enabling municipalities and
subnational entities to jointly
plan, develop, finance and
implement development activities
at a metropolitan and regional
scale. (Ministerial Regulatory
Decree 819 of April 2012 –
Contract Plans)
Policy Area #4: Urban Connectivity and Regional Infrastructure Finance
Increase the economic Prior Action 13: Approve
Policy Trigger 12: Approve
efficiency of urban
Ministerial Decree creating the
CONPES national policy
system by improving
National Agency for Infrastructure document that articulates a
logistics-based
with provisions to improve
national policy on management
connectivity between
technical, legal and financial
contracts for the national road
Colombian cities and
capacity of the agency to structure system (‘CREMA’).
between Colombian
regional infrastructure
cities and external
concessions. (Decree 4165 of
Policy Trigger 13: Approve
markets.
November 2011 - Creation of
National Agency for
Infrastructure, ANI)
Strengthen framework
for the structuring of
PPPs for urban and
regional infrastructure
Prior Action 14: Approve Law
establishing framework for the
structuring and financing of
public-private partnerships (Law
1508 of April 2012 – Law for
Public-Private Partnership - PPPs).
CONPES national policy
document that outlines a Road
System Plan with the aim of
restructuring, detailing, and
clarifying development,
management, and maintenance
responsibilities for the national
road network.
Policy Trigger 14: Approve
Ministerial Decree regulating the
PPP Law to provide a framework
of guidelines for PPP structuring,
financing, and management.
5.
Distributional and Gender Aspects
The efficient management of cities and urban areas will be the key determinants of whether
Colombia will be able to cash in on a potential growth dividend to reduce poverty and inequality.
This operation is expected to have significant positive impacts for the poor by providing support to
the GoC’s policies that seek to improve the productivity, sustainability and inclusiveness of cities in
Colombia. In order to carefully evaluate the impacts of the policies proposed, a robust PSIA will be
conducted.
6.
Environmental Aspects
The DPL includes specific measures to strengthen environmental management, and other prior
actions could also contribute to environmental protection. It is expected that the policies and reforms
supported by this operation will have net positive environmental impacts in all policy areas noted
above, including improved capacity for environmental management and planning, improved waste
management, better efficiency and reach of public transit and possible reductions in fleet size, less
congestion, and air pollutant emissions, and improvements such as bikeways, upgraded pavements
and green areas; better environmental management in territorial planning with improved security of
water supply and sanitation and strengthened integrated watershed management and benefits
associated with reduced informal and at-risk housing.
7.
Tentative Financing
Source: International Bank for Reconstruction and Development
Total
($100m.)
100,000,000