The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Republika Srpska Railways Restructuring Project (P161122) EUROPE AND CENTRAL ASIA | Bosnia and Herzegovina | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 9 | ARCHIVED on 01-Aug-2022 | ISR52254 | Implementing Agencies: Bosnia and Herzegovina, Republika Srpska, Republika Srpska Railways Key Dates Key Project Dates Bank Approval Date: 07-Dec-2017 Effectiveness Date: 31-Aug-2018 Planned Mid Term Review Date: 30-Jun-2020 Actual Mid-Term Review Date: 22-Oct-2020 Original Closing Date: 31-Dec-2021 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Overall Development Objective of the Transport Sector Modernization Program (TSMP) is to improve transport connectivity of the country along priority transport links and to support improvements in transport operations and asset management practices. The Program is multi-phased with a First Phase including road sections in the Federation of Bosnia and Hezegovina, and the Second Phase including railways in the Republika Srpska. The Development Objective of the Second Phase of the TSMP is to improve the operational efficiency and financial sustainability of the railways in Republika Srpska. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Financial restructuring:(Cost $139.02 M) Workforce restructuring:(Cost $4.13 M) Organizational restructuring:(Cost $5.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Project implementation has been steadily progressing over past months, yet with important milestones to be achieved for the restructuring of the railways sector in Republika Srpska. This milestones include the creation of the modernized ZRS - ZRS Holding and its subsidiary companies: ZRS Infrastructure, ZRS Passenger and ZRS Cargo. While most ZRS arrears have been cleaned up, the financial restructuring - involving a conversion of ZRS debt into State-owned equity - is still pending. Finally, ZRS's commercial revenues have been increasing, progressively recovering from the Covid-19 period, which puts the whole sector in a better dynamics for modernization and restructuring. 8/1/2022 Page 1 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Substantial Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Financial Restructuring IN01165009 ►ZRS Working Ratio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.70 0.98 1.79 1.00 Date 31-Dec-2016 04-Oct-2021 31-Dec-2021 31-Dec-2022 Workforce Restructuring IN01165010 ►ZRS labor productivity (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 146.00 276.00 193.00 200.00 8/1/2022 Page 2 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Date 01-May-2017 04-Oct-2021 31-Dec-2021 31-Dec-2022 Organizational Restructuring IN01165031 ►Public Service Obligations Contract for passenger services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Implemented and fully Value No No No covering passenger operations deficit. Date 01-Mar-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165032 ►Multi-annual infrastructure contract (MAIC) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contract implemented, fully covering Value None None None infrastructure investments Date 30-Apr-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 Intermediate Results Indicators by Components Workforce restructuring IN01165034 ►Size of ZRS workforce (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,098.00 2,064.00 1,991.00 2,098.00 Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165036 ►Share of female employees of ZRS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 16.00 15.40 15.00 Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165039 Percentage of ZRS employed women who applied for job retraining opportunities in the company are retrained (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 8/1/2022 Page 3 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) IN01165040 ►Percent of workers’ grievances resolved (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 78.00 100.00 100.00 Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165042 ►ZRS managers trained on topics related to gender equality and safety at work (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 30-Jun-2021 04-Oct-2021 30-Jun-2022 31-Dec-2022 Organizational restructuring IN01165035 ►Accounting separation for infrastructure and operations implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165037 ►ZRS 5-year Business Plans approved (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165038 ►Railways asset management system implemented (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165041 ►Customers’ complaints (Percent from Baseline) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 6.00 12.00 40.00 Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 8/1/2022 Page 4 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) IN01165043 Passenger customers complaints (Percent from Baseline) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 0.00 0.00 40.00 Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 IN01165044 Freight customers complaints (percent from Baseline) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 8.00 15.00 40.00 Date 01-May-2017 04-Oct-2021 30-Jun-2022 31-Dec-2022 Financial restructuring IN01165033 ►Arrears related to employees benefits and social contributions (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 42,700,000.00 150,000.00 150,000.00 0.00 Date 01-May-2017 04-Oct-2021 04-Oct-2021 31-Dec-2022 Performance-Based Conditions IN01165045 ►PBC 1 DLR1.1(a): ŽRS restructuring plan has been approved by the RS Government (Yes/No, Intermediate Outcome, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No Yes Yes Yes Date -- 21-Dec-2018 21-Dec-2018 -- IN01165046 ►PBC 2 DLR 1.1(b): Arrears paid for 500 ŽRS workers (Number, Intermediate Outcome, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value 0.00 500.00 500.00 500.00 Date -- 21-Dec-2018 21-Dec-2018 -- 8/1/2022 Page 5 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) IN01165047 ►PBC 3 DLR 1.2 Arrears paid for the remaining 2,598 ZRS workers, for a total of 3,098 (Number, Intermediate Outcome, 12,000,000.00, 50.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value 0.00 2,519.00 2,519.00 2,598.00 Date -- 30-Sep-2020 30-Jun-2022 -- IN01165048 ►PBC 4 DLR 1.3 More than 90% of ZRS' capital is owned by RS, as evidenced by registry certificate issued by the Banja Luka Stock (Yes/No, Process, 3,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165049 ►PBC 5 DLR 2.1 Retrenchement Plans have been implemented, or voluntary separation of retirement have taken place for 500 ZRS wokers (Number, Intermediate Outcome, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value 0.00 500.00 500.00 500.00 Date -- 07-Feb-2019 07-Feb-2019 -- IN01165050 ►PBC 6 DLR 2.2 Retrenchment Plans have been implemented, or voluntary separation or retirement have taken place for an additional 200 ZRS workers, for a total of 700 ZRS workers (Number, Outcome, 5,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value 0.00 200.00 200.00 200.00 Date -- 30-Jun-2019 30-Jun-2019 -- IN01165051 8/1/2022 Page 6 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) ►PBC 7 DLR 2.3 Retrenchment Plan have been implemented, or voluntary separation of retirement have taken place for the remaining 300 ZRS worker, for a total of 1000 workers (Number, Outcome, 6,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value 0.00 150.00 150.00 0.00 Date -- 30-Sep-2020 30-Jun-2022 -- IN01165052 ►PBC 8 DLR 3.1(a) Consultants selected for ZRS reorganization (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No Yes Yes Yes Date -- 28-Feb-2020 28-Feb-2020 -- IN01165053 ►PBC 9 DLR 3.1 (b) Consultants selected for ZRS business plans and contracts (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No Yes Yes Yes Date -- 30-Sep-2020 30-Sep-2020 -- IN01165054 ►PBC 10 DLR 3.2 (a) Draft reports completed on the consultancies referred to in DLR 3.1 (a) (Yes/No, Process, 1,500,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No Yes Date -- 30-Sep-2020 30-Jun-2022 -- IN01165055 ►PBC 11 DLR 3.2 (b) Draft reports completed on the consultancies referred to in DLR 3.1 (b) (Yes/No, Process, 1,500,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No Yes 8/1/2022 Page 7 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Date -- 30-Sep-2020 30-Jun-2022 -- IN01165056 ►PBC 12 DLR 3.3 (a) Implementation of the regulatory and functional review recommendations identified by the consulting services set forth in DLR 3.1 (a) (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165057 ►PBC 13 DLR 3.3 (b) new ZRS organization structure including separate management and accounting of operations and infrastructure in place as evidenced by an RS letter to the WB (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165058 ►PBC 14 DLR 3.3 (c) PSO, TAC, MAIC and Performance Contracts signed by the respective parties thereto (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165059 ►PBC 15 DLR 3.3 (d) Asset management plans in place as evidenced by report on asset conditions generated by asset management system (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- 8/1/2022 Page 8 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) IN01165060 ►PBC 16 DLR 3.3 (e) ZRS business plans for operations, infrastructure and workshops approved by its board (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165061 ►PBC 17 DLR 3.3 (f) Financial accounting system and a human resources management system acquired (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165062 ►PBC 18 DLR 3.4 (a) Financial accounting system and a human resources management system installed and fully functional (Yes/No, Outcome, 2,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165063 ►PBC 19 DLR 3.4 (b) The PSO and MAIC are fully funded as evidenced by the RS confirmation of financial commitments (Yes/No, Outcome, 3,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165064 ►PBC 20 DLR 3.4 (c) PSO and MAIC reviewed and if required updated after their firs year of implementation (Yes/No, Outcome, 3,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 8/1/2022 Page 9 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- IN01165065 ►PBC 21 DLR 3.4 (d) Approved ZRS business plans for operations infrastructure and workshops reviewed and if required updated after their first year of implementation (Yes/No, Outcome, 1,171,750.00, 0.00%) Baseline Actual (Previous) Actual (Current) Dec. 31, 2022 Value No No No No Date -- 30-Sep-2020 30-Jun-2022 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161122 IBRD-88080 Effective USD 60.60 60.60 0.00 47.84 10.36 82% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161122 IBRD-88080 Effective 07-Dec-2017 06-Mar-2018 31-Aug-2018 31-Dec-2021 31-Dec-2022 Cumulative Disbursements 8/1/2022 Page 10 of 11 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Restructuring History Level 2 Approved on 20-Sep-2021 Related Project(s) There are no related projects. 8/1/2022 Page 11 of 11