MX-Decentralized Infrastructure Reform and Development Loan

As defined in loan agreement, the PDO is to: Improve the provision and performance of the transport, water and sanitation, and housing sectors in Guanajuato State.Four PDO indicators will be used to assess progress: 1. Percent of state road network, managed by the Secretaria de Obras Publicas, that is in good or fair condition. Intermediate outcome indicator will be the share of road work program that has been derived using the HDM4 methodology for planning and maintenance decisions. 2. Increase use of water and sanitation services by consumers (measured by volume of water sold in municipal capitals). Intermediate PDO: % of municipal operators that show a 10% improvement in revenue/production ratios. 3. Housing institute, IVEG, implements low-income housing program using clear eligibility and subsidy criteria and charging a real interest rate. Intermediate PDO: % of loans issued by IVEG targeted to low-income consumers. 4. State fiduciary and environmental procedures and systems have improved. Intermediate PDO: # project implementation agencies that have in place systems and trained staff for procurement planning, financial management, implementation of environmental and social safeguards and consultation process.