The World Bank Report No: ISR11928 Implementation Status & Results Russian Federation St. Petersburg Economic Development Project (P069063) Public Disclosure Copy Operation Name: St. Petersburg Economic Development Project (P069063) Project Stage: Implementation Seq.No: 21 Status: ARCHIVED Archive Date: 27-Dec-2013 Country: Russian Federation Approval FY: 2003 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Ministry of Culture of the Russian Federation Key Dates Board Approval Date 15-May-2003 Original Closing Date 31-Aug-2009 Planned Mid Term Review Date Last Archived ISR Date 25-Jun-2013 Effectiveness Date 24-Jan-2005 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date 18-May-2008 Project Development Objectives Project Development Objective (from Project Appraisal Document) 1) Policy and regulatory environment is conducive to the expansion of private sector enterprises; 2) Larger and more efficient private market for land and real estate; 3) Improved City fiscal management capacity; 4) City to preserve its comparative advantage in culture and the arts. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Rehabilitation of Cultural Assets in St. Petersburg 80.40 Cultural Investment Facility (CIF) 7.99 Institutional Strengthening 0.47 Project Implementation 10.62 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Implementation of the St. Petersburg Economic Development Project (SPEDP) is progressing well. Disbursement is on schedule. US$98.6 million (more than 98% of the total loan amount) has already been disbursed, and the likelihood of full achieving of the Project Development Objectives (PDO) by the project closing date is high. Under the Cultural Assets Rehabilitation sub-component, eight out of the nine rehabilitation sub-projects (Shostakovich State Academic Philharmonia, Peter and PaulFortress, Page 1 of 6 The World Bank Report No: ISR11928 Temple of Friendship of Pavlovsk State Museum and Conservation Area, St. George Hall and Corps de GardesPavilions ofMikhailovsky Palace of the State Russian Museum, Winter Garden of the Marble Palace of the State Russian Museum,Turkish BathPavilion and Hermitage Kitchen and Park of the State Tsarskoe Selo Museum) have been completed. Stage 1 of the State Hermitage East Wing reconstruction was completed in December 2010. Construction works, installment of the engineering equipment, interior finishing works and historic restoration works under Stage 2 of the State Hermitage East Wing reconstruction have been largely completed, and the sub-project is now in the phase of putting into Public Disclosure Copy operation and testing of the engineering equipment and the preparation process of the formal hand-over to the State Hermitage. As a result of 7 rounds of competition under the Cultural Investment Facility (CIF) sub-component that provided competitive, demand-driven grants to the cultural institutions located in St. Petersburg, 32 grants have been awarded and successfully completed. The experience gained during implementation of the CIF program has been extensively used during implementation of another Bank-financed project on Preservation and Promotion of Cultural Heritage in Russia that also includes a “Small Window” sub-component financing initiatives of the cultural institutions located in the project participating regions. Two programs - Staff Reserve program and Institutional Review of St.Petersburg Cultural Committee program - envisaged under Institutional Strengthening sub-component have also been completed. The Staff Reserve Program helped to build the capacity of middle management staff and served as talent spotting. Institutional Review of the St.Petersburg Cultural Committee program was implemented via development of the Automatic Control System (ACS) that is now introduced in 64 city's cultural institutions and is used by the Committee to monitor and assess the performance of its subordinate cultural institutions. The Project Implementation Unit (PIU) and Ministry of Culture are conducting intensive monitoring of all remaining activities to ensure timely implementation and completion by the project closing. Locations Country First Administrative Division Location Planned Actual Russian Fed. Not Entered Saint Petersburg Russian Fed. Not Entered Mariinsky Theatre Russian Fed. Not Entered St. Petersburg State Hermitage Museum Russian Fed. Not Entered The Russian Museum Russian Fed. Not Entered Peter and Paul Fortress Russian Fed. Not Entered St. Petersburg Conservatory Russian Fed. Not Entered Tsarskoye Selo Public Disclosure Copy Russian Fed. Not Entered Pavlovsk Palace Russian Fed. Not Entered Shostakovich Philharmonic Results Project Development Objective Indicators Page 2 of 6 The World Bank Report No: ISR11928 Indicator Name Core Unit of Measure Baseline Current End Target 1. More competitive environment due to 10% p. Number Value 96900.00 228000.00 141871.00 a. increase in number of new SMEs registered Date 31-Dec-2003 31-Dec-2007 31-Dec-2007 Public Disclosure Copy in SPB. Comments Number of SME registered in This number is calculated 2007. The figure far exceeded toward the date of completion the target value. of implementation of adjustment component of the To facilitate the increased Project establishment of SMEs, Information Centers for business development were established. In 2003 the functioning of these Centers was supported from the city budget, and the centers provided consultations to 500 applicants. Starting from 2004, no city budget funds were allocated to these centers, and the centers started to function on fee-for- service basis. The number of applicants served by the centers is about 5000 peryear (that far exceed the target of 730 applicants per year by the date of DPL component completion). 2. 5% p.a. increase in private transactions for Number Value 90402.00 212352.00 115379.00 land and real estate. Date 31-Dec-2002 31-Dec-2007 31-Dec-2007 Comments Number of transactions in This value is calculated 2007. The figure far exceeded toward the date of completion the target value. of implementation of Public Disclosure Copy adjustment component of the To facilitate increase in a Project number of transactions, thecity adopted St. Petersburg General Plan (Master Plan) that determines directions for territorial development planning including determination of functional zones. The zoning Page 3 of 6 The World Bank Report No: ISR11928 covering the city is determined by the Rules for Land Use and Site Development that includes Public Disclosure Copy the map on town zoning and town-planning elements. 3. Credit rating by international credit rating Text Value Fitch IBCA: BB (positive) Moody's: Baa1 (Stable); Fitch: Creditworthy status achieved agency S&P: BB (stable) Moody's: BBB (Stable), S&P: BBB and maintained Ba2 (Figures are for 2003) (stable) Date 31-Dec-2003 22-Nov-2013 31-Aug-2009 Comments Despite of impact of the new wave of the global economic crisis, creditworthy status of the city keeps to be maintained 4. Growth in tourism 8%p.a. Number Value 2737685.00 6000000.00 4022557.00 Date 31-Dec-2002 31-Oct-2013 31-Aug-2009 Comments According to officially This value is calculated published information of St. toward the original project Petersburg Committee for closing date Tourism Development, 6 million tourists visited city in 2012, and half of them were foreign tourists Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target 1. Divestiture of City owned enterprises Text Value Baseline value is zero as this 150 city owned premises Reduction of the number of is the start of the process were privatized in 2002, 47 City-owned or City-controlled city owned enterprises commercial enterprises in St. (MUEs ) were auctioned in Petersburg though diversiture 2005, 45 MUEs were auct or oth er means, including but Public Disclosure Copy ioned in 2006 and 12 MUEs - not limited to SUEs, achieved in 2007. and maintained Date 01-Jan-2002 31-Dec-2007 31-Dec-2007 Comments 2. Number of viable/sustainable applications Number Value 0.00 30.00 20.00 submitted by participants to St. Petersburg Date 26-Feb-2009 30-Dec-2010 30-Dec-2010 Cultural Committee as a result of completio n Comments Baseline value is zero as this The Staff Reserve program No less than 20 viable of the Staff Reserve program is the start of the process completed in September, applications 2010. 30 program participants Page 4 of 6 The World Bank Report No: ISR11928 prepared viable project proposals which were presented to the St. Petersburg Cultural Public Disclosure Copy Committee on September 6-9, 2010 Number of completed sub-projects under sub- Number Value 0.00 8.00 9.00 component "Rehabilitation of Cultural Assets in Date 24-Jan-2005 26-Nov-2013 31-Dec-2013 St. Petersburg" Comments The baseline is zero, as it is 8 out of 9 sub-projects have The number of cultural start of the project been completed. Stage 1 of heritage sites specified in the implementation the biggest sub-project on the LA as amended on August 6, Hermitage East Wing 2007 reconstruction was completed in December 2010. Construction works under Stage 2 of this contract is nearing completion. Number of completed sub-projects under Number Value 0.00 32.00 20.00 "Cultural Investment Facility" sub-component Date 24-Jan-2005 26-Nov-2013 31-Dec-2013 Comments Baseline is zero, as it is start As a result of 7 rounds of Average number of sub- of the project implementation competition, 32 have been projects to be financed from awarded and successfully Cultural Investment Facility completed grants (one grant=one sub- project) Cultural Investment Facility (CIF) resources Text Value Baseline is zero, as it is start All CIF funds (US$ All CIF funds (US$ 7.99 mln. fully committed by end of fourth year of project of the project: no CIF funds 7.99 mln. of loan of loan amount) are fully implementation and completion of all CIF committed and no CIF amount) have been fully committed; and operations by end of project operations completed committed. All CIF implementation of all CIF subprojects financed from subprojects financed from the these grants have been awarded CIF grants is successfully completed successfully completed Date 24-Jan-2005 26-Nov-2013 31-Dec-2013 Public Disclosure Copy Comments Data on Financial Performance (as of 14-Nov-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P069063 IBRD-46940 Effective 15-May-2003 04-Aug-2004 24-Jan-2005 31-Aug-2009 31-Dec-2014 Disbursements (in Millions) Page 5 of 6 The World Bank Report No: ISR11928 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P069063 IBRD-46940 Effective USD 161.10 101.10 60.00 98.52 2.58 97.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation The SPEDP is also financing updates to the design documentation of the restoration and reconstruction of the State Mariinsky Theater. The physical restoration works are planned to be financed from the Additional Financing (AF) to SPEDP that has been requested by the Russian Federation and will support reconstruction and restoration works at the historic building of the State Mariinsky Theater and two inner Courtyard of the Mikhailovsky Palace of the State Russian Museum. In response to the request of the Russian Federation, the Bank initiated the work on preparation of the AF loan in July 2013. To ensure sufficient time for preparation, appraisal, negotiations, approval and signing of the AF, the SPEDP closing date was extended by 12 months till December 31, 2014. Also, since the SPEDP loan was approved in 2003, the overall project implementation including the AF will result in a period exceeding 10 years. In accordance with Bank policy, the Public Disclosure Copy Bank initiated preparation of an Implementation Completion and Results Report (ICR) for SPEDP up to current date and requested the Borrower's own evaluation report (received by the Bank on November 12, 2013). A draft of the Bank’s ICR is going through peers review and will be shared with the Borrower for review and comments prior to official submission to the Bank’s Board of Executive Directors. Restructuring History There has been no restructuring to date., Level two Approved on 17-Jun-2011, Level two Approved on 13-Dec-2012, Level 2 RVP Decision on 04-Nov-2013 Related Projects P146463-Additional Financing for St. Petersburg Economic Development Project Page 6 of 6