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Document of the World Bank Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 117771-PH INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL FINANCE CORPORATION MULTILATERAL INVESTMENT GUARANTEE AGENCY PERFORMANCE AND LEARNING REVIEW (PLR) Public Disclosure Authorized OF THE COUNTRY PARTNERSHIP STRATEGY FOR THE REPUBLIC OF THE PHILIPPINES FOR THE PERIOD FY15-FY19 Public Disclosure Authorized August 31, 2017 Brunei, Malaysia, Philippines and Thailand Country Management Unit East Asia and Pacific Region International Finance Corporation East Asia and Pacific Department Public Disclosure Authorized Multilateral Investment Guarantee Agency This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank Group authorization. The date of the last Country Partnership Strategy Report was June 12, 2014 FISCAL YEAR July 1 – June 30 CURRENCY EQUIVALENTS Exchange rate effective as of July 28, 2017 Currency unit: Philippine peso (PHP) US$1 = 50.54 ABBREVIATIONS AND ACRONYMS AAA Analytical and Advisory DRFI Disaster Risk Finance and Activities Insurance ADB Asian Development Bank DRM Disaster Risk Management AF Additional Financing DSWD Department of Social Welfare AIIB Asian Infrastructure and Development Investment Bank EAP East Asia and Pacific ARC Agrarian Reform Community EGRA Early Grade Reading ARMM Autonomous Region of Assessment Muslim Mindanao EGMA Early Grade Math Assessment ASA Advisory Services and FASTRAC Facility for Advisory Support Analytics for Transition Capacities BDA Bangsamoro Development FCV Fragility, Conflict, and Agency Violence BIR Bureau of Internal Revenue FDI Foreign Direct Investment BOC Bureau of Customs FIES Family and Income BUB Bottom-Up Budgeting Expenditure Survey CAB Comprehensive Agreement on FINDEX Financial Inclusion Data the Bangsamoro FM Financial Management CAT-DDO Catastrophe - Deferred FRS Fiscal Risk Statement Drawdown Option GAA General Appropriations Act CCT Conditional Cash Transfer GDP Gross Domestic Product CDD Community Driven GEF Global Environment Facility Development GFMIS Government Financial CGAP Country Gender Action Plan Management Information CPF Country Partnership System Framework GHG Greenhouse Gas CPS Country Partnership Strategy GOCCs Government-Owned and CTF Clean Technology Fund Controlled Corporation DA Department of Agriculture GoP Government of the Philippines DBM Department of Budget GPBP Grassroots Participatory Management Budgeting program DILG Department of Interior and IBRD International Bank for Local Government Reconstruction and DP Development Partners Development DPL Development Policy Loan IEG Independent Evaluation Group DPWH Department of Public Works IFC International Finance and Highways Corporation i ILO International Labour NRIMP National Roads Improvement Organization and Management Project IMF International Monetary Fund PBB Performance-Based Bonus JICA Japan International PDP Philippine Development Plan Cooperation Agency PEFA Public Expenditure and JNA Joint Needs Assessment Financial Assessment KPI Key Performance Indicator PforR Program for Results KPS Key Performance Standard PLR Performance and Learning LEAPS Learning, Equity and Review Accountability Program PPP Public-Private Partnership Support PRDP Philippine Rural Development LGUs Local Government Units Project LISCOP Laguna de Bay Institutional PSA Philippine Statistics Authority Strengthening and Community RAS Reimbursable Advisory Participation Project Services LNG Liquefied Natural Gas REC Renewable Energy Certificate M&E Monitoring and Evaluation RPMS Results-Based Performance MIGA Multilateral Investment Management System Guarantee Agency SALN Statement of Assets, Liabilities MILF Moro Islamic Liberation Front and Net Worth MRDP Mindanao Rural Dev. Project SME Small and Medium Enterprise MSME Micro, Small and Medium SWDRP Social Welfare and Enterprises Development Reform Program MTF Mindanao Trust Fund TA Technical Assistance NCDDP National Community Driven UACS Unified Account Code Development Program Structure NCR National Capital Region UNDP United Nations Development NDHS National Demographic and Programme Health Surveys UNFPA United Nations Population NEA National Electrification Fund Administration WAVES Wealth Accounting and the NEDA National Economic and Valuation of Ecosystem Development Authority Services NEP National Expenditure Program WBG World Bank Group NHIP National Health Insurance WDR World Development Report Plan WRC Water Regulatory Commission NHTS-PR National Household Targeting WSS Water Supply and Sanitation System for Poverty Reduction IBRD IFC MIGA Vice President: Victoria Kwakwa Dimitris Tsitsiragos Keiko Honda, EVP Director: Mara Warwick Vivek Pathak Merli M. Baroudi Task Team Leader: Georgia Wallen Yuan Xu Paul Antony Barbour ii TABLE OF CONTENTS I. INTRODUCTION ......................................................................................................................................... 1 II. MAIN CHANGES IN COUNTRY CONTEXT............................................................................................... 2 Changes in Poverty Reduction and Shared Prosperity ........................................................................................... 2 Macroeconomic Developments and Outlook ......................................................................................................... 3 Evolving Context for Partnership ........................................................................................................................... 4 III. SUMMARY OF PROGRAM IMPLEMENTATION ...................................................................................... 6 Partnerships and Leveraging .................................................................................................................................. 6 Portfolio Evolution and Performance (FY15-FY17) .............................................................................................. 7 Progress Towards Achieving CPS Objectives ........................................................................................................ 9 IV. EMERGING LESSONS ........................................................................................................................... 13 V. ADJUSTMENTS TO THE COUNTRY PARTNERSHIP STRATEGY ............................................................ 14 Objectives and Plan of Activities for FY18-19 .................................................................................................... 15 Strengthening WBG support for Peace and Development in Mindanao .............................................................. 16 Fit for Purpose: Adjustments to the CPS Results Matrix ..................................................................................... 17 VI. RISKS TO CPS PROGRAM ................................................................................................................... 18 VII. CONCLUSION ...................................................................................................................................... 19 ANNEX 1. PHILIPPINES UPDATED CPS RESULTS MATRIX (FY15-19) ..................................................... 20 ANNEX 2. SUMMARY OF CHANGES TO THE PHILIPPINES CPS RESULTS MATRIX ................................... 27 ANNEX 3. PHILIPPINES COUNTRY PARTNERSHIP STRATEGY (CPS) FY15-18 ORIGINAL RESULTS MATRIX - STATUS UPDATE ......................................................................................................................... 40 ANNEX 4. IBRD COMMITMENTS AND TENTATIVE PIPELINE, FY15-19 .................................................. 70 ANNEX 5. IBRD ADVISORY SERVICES AND ANALYTICS (FY15-17) ....................................................... 71 ANNEX 6. IBRD ADVISORY SERVICES AND ANALYTICS WORK PROGRAM FOR FY18-20 ..................... 74 ANNEX 7. IFC COMMITMENTS, FY15-FY17 ........................................................................................... 75 ANNEX 8. IFC ADVISORY SERVICES PORTFOLIO, FY15-FY17 ............................................................... 76 ANNEX 9. PHILIPPINES PLR REGIONAL CONSULTATIONS – HIGHLIGHTS ............................................... 77 Boxes: Box 1: Drivers of violence in conflict-affected Mindanao include social inequality, injustice and weak governance…………………………………………………………………………………………………. 5 Box 2: Trust Fund partnerships continue to strengthen client engagement for improved results…………. 7 Box 3: Results at a Glance -- WBG support for Inclusive Growth, Poverty Reduction and Shared Prosperity in the Philippines (FY15-FY17)………………………………………………………………. 10 Box 4: Highlights on Mainstreaming Gender across the WBG Portfolio………………………………...11 Box 5: The main component of the Comprehensive Program for Regional Development in Mindanao... 17 Box 6: Systematic Risk-Rating Tool…………………………………………………………………….. 18 iii PHILIPPINES PERFORMANCE AND LEARNING REVIEW (PLR) This PLR reviews the implementation of the World Bank Group (WBG) Country Partnership Strategy (CPS, FY15-18) for the Republic of the Philippines, discussed by the Board in June 2014. The PLR focuses on adjustments to the CPS program in light of implementation experience, lessons learned, and evolving country circumstances and demands. I. INTRODUCTION 1. The context for WBG partnership with the Philippines has evolved since the launch of the CPS in 2014, driven by several key
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