Peru

Assessment of Two Lines of Credit for Sustainable Housing

EXPERTISE : , Financing Mechanisms /Evaluation
SECTOR : , Residential

Name of Client

Agence Française de Développement (AFD)

 

Description of Project

Within the framework of its retrospective assessment mechanism, the AFD assesses the interventions it finances upon their completion. This is due to an AFD concern for promoting a reinforced dialogue with its partners about project outcomes, learning from past interventions and guaranteeing objective information about the proper use of public funds under AFD management.

The AFD, with the Fondo Mivivienda (FMV), retained the services of Econoler to provide an informed and independent opinion on the application and effects of AFD financial products implemented through the FMV. The assessment included two interventions:

  • A loan for the sum of EUR 120 million implemented between 2014 and 2018, called CPE 1006, focused on financing sustainable housing. This product was accompanied by a technical assistance (TA) program supporting the development of the sustainable housing market;
  • The second financial mechanism, called CPE 1022, is a non-sovereign loan for the sum of EUR 105 million in 2019 by the AFD and EUR 45 million in 2019 by the KfW, which is also accompanied by a subsidy of EUR 10 million from the European Union, of which EUR 750,000 is dedicated to a TA program. This mechanism is at the beginning of implementation and the assessment will be focused on its suitability and coherence.

The assessment will include not only the two lines of credit and TA packages, but also the additional value contributed by the AFD to FMV in an exchange of experience.

Description of services

The mandate carried out by Econoler includes the following tasks:

  • Structure the assessment based an analysis of available documentation, initial interviews, build a theory of change for each intervention and implement the assessment plan;
  • Gather data by planning and conducting interviews and conduct a preliminary analysis on the information gathered;
  • Assess the intervention through replies to six assessment questions divided into judgment criteria and rated A to F. The assessment questions will serve to assess the suitability, coherence, efficacy, efficiency, impact, sustainability and added value of AFD to CPE 1006, as well as the suitability and coherence of CPE 1022 still under implementation;
  • Submit outcomes along with recommendations on how to improve the development of CPE 1022, future interventions, and submit the main outcomes to FMV and AFD.

The assessment of AFD sustainable housing interventions in Peru will feed the capitalization of public development banks and, in turn, of the specific aspects of the sustainable housing mandate of the FMV and will be the subject matter of a presentation to the AFD Board of Administration regarding the interventions and modalities of cross-sectional support of the AFD with public development banks in general and to the Finance in Common summit in November 2020.

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