Program to Support Social Equity and Fiscal Sustainability (IADB-CH-L1149)

Countries
  • Chile
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 24, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Chile - Treasury
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IADB website

Updated in EWS Jun 14, 2020

Disclosed by Bank Mar 17, 2020


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The general objective of the program is to improve social equity with fiscal sustainability in Chile. The specific objectives are: (a) to improve the incomes of the most vulnerable people; (b) improve the sufficiency of solidarity pension systems of Law No. 20,255 and contributory pensions of Decree Law No. 3,500; (c) improve the availability of lower-cost medications; and (d) improve the efficiency of public spending and the quality of the budget formulation process.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Componente 1. Estabilidad Macroeconómica. Componente 2. Apoyo al ingreso de trabajadores vulnerables. Componente 3. Mejora de los resultados del sistema de pensiones. Componente 4. Mayor acceso de la población a servicios de salud y medicamentos. Componente 5. Mejora de la eficiencia del gasto público y del proceso de formulación presupuestaria.

Impactos esperados: (i) una mejora en la equidad social medida a través de un aumento en el ingreso de la población vulnerable; y (ii) el mantenimiento de la sostenibilidad fiscal del gasto público, medida como elcumplimiento de los objetivos de déficit fiscal en Chile. Resultados esperados: contribuir a una reducción
en la desigualdad de ingresos entre el percentil 50 y el 25; una reducción de la pobreza en la vejez, medida como la reducción en el número de personas en edad
de jubilarse con ingresos por debajo de la línea de pobreza; una disminución del gasto de bolsillo de usuarios que adquieren medicamentos, medida como la comparación del gasto promedio antes y después de la implementación de la política de bioequivalencia; un incremento del monto del presupuesto público monitoreado, como parte del proceso de formulación presupuestaria.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Según el Perfil de Proyecto, por ser un préstamo de apoyo a reformas de política, no requiere una clasificación ex ante de impacto sobre el medio ambiente. Las reformas que el Gobierno de Chile está llevando a cabo no generan impactos ambientales ni sociales negativos.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Loan

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Banco de Chile: Asistencia Técnica


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ACCOUNTABILITY MECHANISM OF IADB

The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).

How it works

How it works