57383 STATUS OF PROJECTS IN EXECUTION FY10 SOPE EUROPE AND CENTRAL ASIA REGION Kosovo Operations Policy and Country Services OCTOBER 03, 2010 Introduction The Status of Projects in Execution (SOPE) Report for FY10 provides information on all IBRD, IDA, and trust funded projects that were active as of June 30, 2010. The World Bank has issued a SOPE Report every year as an internal communication to the Board of Executive Directors. In accordance with the Bank's revised disclosure policy, since FY02, the SOPE Report is available to the public. The report is intended to bridge the gap in information available to the public between the Project Appraisal Document or Program Document, disclosed after the Bank approves a project, and the Implementation Completion Report, disclosed after the project closes. In addition to the project progress description, the FY10 SOPE report1 contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date. 1 Notes: Amounts and Graphs for loans/credits/grants in currencies other than U.S. dollars may not match exactly due to exchange rate fluctuations over the life of the project. Disbursement graphs are not included for Development Policy Operations, which provide quick-disbursing financing to support policy and institutional reforms. For these operations, funds are disbursed in one or more stages (tranches), released when the borrower complies with agreed prior actions. Projects which are not yet effective may not have a planned disbursement schedule and thus will not include a graph. Kosovo Project Name (ID): XK Business Env TA (P088045) Country: Kosovo Board Approval Date: 06/14/2005 Midterm Review Date: 10/01/2008 Closing Date: 06/30/2011 Loan/Credit/Grant Number: IDA-H1670 Sector (s): Sub-national government administration (50%), Central government administration (20%), General industry and trade sector (15%), Law and justice (10%), General finance sector (5%) Theme (s): Other financial and private sector development (25%), Personal and property rights (25%), Land administration and management (24%), Rural markets (13%), Regulation and competition policy (13%) Project Development Objectives: The objective of the project is to improve the business environment in Kosovo by reducing uncertainty of key regulatory processes, improving delivery of business related services and strengthening property rights. The project was restructured, or received Additional Financing during FY 10 The project was restructured by one-year extension to allow full utilization of the project funds. Progress toward achieving development objective(s): The project has been making sufficient improvement in the last fiscal year. Through the process of opening of four Municipal Business Centers (MBCs), the project is contributing to the improvement of the overall business environment. The MBCs serve as a one-stop shop for both providing all business administrative procedures (registration, permits, licensing, etc.) and for serving citizens. Their main objective is to improve service provision by streamlining issuance of business permits, expanding outreach of business registration and providing necessary information and advice on other issues of business concern. In addition, the review of business inspections is underway and reform recommendations will be presented to the government and business circles shortly. Implementation of the Property Rights component has been slower than expected due to institutional changes and the financial crisis. There has been a significant decrease in the time it takes to register a property in re-engineered Municipal Cadastre Offices of Pristina and Ferizaj down to 15 days from 40 days at the start of the project. This will continue to decrease as the reconstructed cadastre data is completed in the 25 cadastre zones covered by the project, letting people register their properties and securing tenure in a more efficient manner. Further, two municipal cadastre offices--in Pristina and Ferizaj--have been reengineered, allowing less corruption and greater efficiency in registering property transactions. However, it should be noted that there has been a decrease in registered mortgages between 2008 (5,719) and 2009 (5,395) due to the financial crisis. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-H1670 Effective 7.16 3.90 3.34 0.00 STATUS OF PROJECTS IN EXECUTION ­ FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): CLEAN UP & LAND RECLAMATION (P096181) Country: Kosovo Board Approval Date: 06/13/2006 Midterm Review Date: 02/15/2010 Closing Date: 12/31/2010 Loan/Credit/Grant Number: TF-90160, IDA-H3190, IDA-H2340 Sector (s): Power (70%), Mining and other extractive (30%) Theme (s): Land administration and management (40%), Pollution management and environmental health (40%), Environmental policies and institutions (20%) Project Development Objectives: The objectives are to: mitigate the environmental impacts from open coal ash dumping through remediation of ash dump area and environmental control measures for ongoing ash disposal; enable the beneficiary Kosovo Energy Corporation (KEK) to free land for community development purposes currently taken by overburden materials; and build capacity in KEK for continued clean-up and environmentally good practice mining operations. The additional finance enables KEK to remove hazardous chemicals from its former gasification site. Progress toward achieving development objective(s): The Project is on track to meet its objectives. All design work for ash dump remediation, ash disposal solution and overburden dump reclamation has been completed including procurement of the earthmoving equipment to undertake these works which have started in September 2009. The cleanup activities at a former coal gasification site (removal of hazardous chemicals) are expected to start in October 2010. Due to delays caused by requirements to re-design certain components and the need for the client to find additional co-financing budget for investments to stop the current method of ash disposal, not all project activities can be completed by the Project closing date and an extension will be required. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation TF-90160 Effective 3.89 2.49 1.69 0.00 IDA-H3190 Effective 5.13 0.00 5.13 0.00 IDA-H2340 Effective 5.82 3.11 2.80 0.00 STATUS OF PROJECTS IN EXECUTION FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): LIGNITE POWER TECHNICAL ASSISTANCE (P097635) Country: Kosovo Board Approval Date: 10/12/2006 Midterm Review Date: 03/20/2009 Closing Date: 12/31/2011 Loan/Credit/Grant Number: IDA-H2540, IDA-H3180 Sector (s): Central government administration (68%), Power (16%), Mining and other extractive (16%) Theme (s): Infrastructure services for private sector development (33%), Regulation and competition policy (17%), Regional integration (17%), Other social development (17%), Environmental policies and institutions (16%) Project Development Objectives: This project will do two things: it provides the tools for the government to prepare for the solicitation and finalization of a private sector coal mine and associated power station, and secondly to improve the legal enabling environment for private sector infrastructure projects in general. The project was restructured, or received Additional Financing during FY 10 The Project Development Objective was amended to replace "Provisional Institutions of Government" with "Government of Kosovo". Progress toward achieving development objective(s): Following enactment of the Energy Strategy of Kosovo by the Government and the Assembly, the transaction gained momentum. The transaction components have been redefined by the Government and a new pre-qualification and short list has been completed. The Government has prepared a complete suite of documents for the competitive tender. Legislative changes have been identified and are in process. Needs for Additional Financing have been identified. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-H2540 Effective 8.75 7.36 1.53 0.00 IDA-H3180 Effective 2.09 0.86 1.24 0.00 STATUS OF PROJECTS IN EXECUTION ­ FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): REAL ESTATE CADASTRE (P101214) Country: Kosovo Board Approval Date: 02/04/2010 Closing Date: 07/31/2015 Loan/Credit/Grant Number: IDA-46910, IDA-H5440 Sector (s): Sub-national government administration (64%), Central government administration (36%) Theme (s): Land administration and management (100%) Project Development Objectives: The project development objective is to help develop Kosovo's land and property markets and enhance security of tenure. Progress toward achieving development objective(s): The project was not effective before the close of the reporting period. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-46910 Not Effective 6.29 0.00 6.29 0.00 IDA-H5440 Not Effective 5.12 0.00 5.12 0.00 STATUS OF PROJECTS IN EXECUTION FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): Public Sector Modernization (P101614) Country: Kosovo Board Approval Date: 02/04/2010 Closing Date: 06/30/2013 Loan/Credit/Grant Number: IDA-46920, IDA-H5450 Sector (s): Central government administration (100%) Theme (s): Administrative and civil service reform (44%), Public expenditure, financial management and procurement (41%), Other public sector governance (15%) Project Development Objectives: The development objectives are to: (a) strengthen the performance of key budget organizations in budget formulation, budget execution, and public procurement; (b) establish the foundations for fiscally sustainable payroll management and effective human resource management in the core civil service; and (c) create conditions for further automation of government work processes and for development of e-government applications. Progress toward achieving development objective(s): The project was not effective before the close of the reporting period. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-46920 Not Effective 4.40 0.00 4.40 0.00 IDA-H5450 Not Effective 3.49 0.00 3.49 0.00 STATUS OF PROJECTS IN EXECUTION ­ FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): AVIAN FLU - XK (P102165) Country: Kosovo Board Approval Date: 02/01/2007 Midterm Review Date: 02/27/2009 Closing Date: 12/31/2010 Loan/Credit/Grant Number: IDA-H2720 Sector (s): General public administration sector (50%), Health (28%), Agricultural extension and research (19%), Solid waste management (3%) Theme (s): Natural disaster management (25%), Other communicable diseases (25%), Rural services and infrastructure (24%), Health system performance (13%), Pollution management and environmental health (13%) Project Development Objectives: The Project Development Objective is to minimize the threat posed to humans by Highly Pathogenic Avian Influenza infection and other zoonoses to prepare for, control, and respond to influenza pandemics and other infectious disease emergencies in humans The project was restructured, or received Additional Financing during FY 10 The project has been restructured based on the request of the Kosovo Food and Veterinary Agency and the Ministry of Finance to broaden the scope of the Project to cover other animal and public health issues. More specifically, the Project was restructured to address: (a) the development of a National Integrated Preparedness Plan for control and response to outbreaks and pandemics prepared in accordance with World Health Organization recommendations; and (b) to contain and diminish the pattern of Highly Pathogenic Avian Influenza and other zoonotic viral threats and infections in humans. Progress toward achieving development objective(s): The Project is achieving its development objectives. The characteristics of the past year of project implementation was the high speed and effective response to the Pandemic of last fall and winter 2009/010. The Ministry of Health and the Project Team response to the level 6 of the A/ H1N1 Pandemic situation was quick and efficient in detecting, preventing, and treating the disease, thus showing the country's cumulative benefit from the project investment in knowhow, infrastructure, equipment, vaccines, antiviral, etc. Disease prevention through public communication and awareness, led by the Ministry of Health, has been well focused, timely, and in close cooperation with the World Health Organization and the Bank. The Institute of Public Health lab is fully functional and responded very well to the Pandemic. The Intensive Care Unit at Pristine Hospital has been rehabilitated; it is well equipped with modern medical facilities and will be inaugurated soon. The Intensive Care Unit will manage a wide range of complicated cases like tetanus, meningitis, sepsis, etc. The Institute of Public Health lab was inaugurated on September 29, 2009. Since then more than 840 samples have been tested locally. 100 tests have been sent to the reference lab in the United Kingdom and have been confirmed as positive with a 95 percent confirmation rate. Under the Animal Health component of the project, the diagnostic capacity for Avian Influenza and other diseases has been further consolidated. The National Veterinary Epidemiology Unit has been established with an optimal number of staff that received continuous training by top level international epidemiologist. The Project is coordinating with other donors like the Food and Agriculture Organization, European Union, German Twinning Program etc. to reap synergies for needed technical assistance and training to reach all the project's objectives. STATUS OF PROJECTS IN EXECUTION FY10 EUROPE AND CENTRAL ASIA REGION Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-H2720 Effective 2.98 1.95 1.10 0.00 STATUS OF PROJECTS IN EXECUTION ­ FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): Inst. Devt. for Education (P102174) Country: Kosovo Board Approval Date: 12/13/2007 Closing Date: 06/30/2012 Loan/Credit/Grant Number: IDA-H3420 Sector (s): Primary education (39%), Secondary education (30%), Central government administration (21%), Sub- national government administration (7%), Tertiary education (3%) Theme (s): Education for all (33%), Education for the knowledge economy (33%), Conflict prevention and post- conflict reconstruction (17%), Decentralization (17%) Project Development Objectives: The objective is to strengthen systems, institutions and management capacities needed for education quality improvements. Progress toward achieving development objective(s): The Pre-University Law was finalized to be submitted to the parliament. The school financing reform has been implemented in 13 municipalities. The Administrative Instructions on Teacher Licensing and Teacher Training Program have been approved so that the reforms in these areas can move forward. A school mapping program has been developed and staff of the Infrastructure department has been certified to manage it. The public consultation on the draft Higher Education Law has been completed. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-H3420 Effective 9.82 1.19 8.62 0.00 STATUS OF PROJECTS IN EXECUTION FY10 EUROPE AND CENTRAL ASIA REGION Project Name (ID): XK Financial Sector TA (P108080) Country: Kosovo Board Approval Date: 12/13/2007 Closing Date: 06/30/2011 Loan/Credit/Grant Number: IDA-H3410 Sector (s): Central government administration (76%), Micro- and SME finance (13%), Banking (11%) Theme (s): Standards and financial reporting (40%), Regulation and competition policy (40%), Other financial and private sector development (20%) Project Development Objectives: The objectives of the project are to: (a) enhance CBK's institutional framework and sustainability; (b)strengthen the regulatory and supervisory framework for banks, insurance companies and pension funds; (c) strengthen the microfinance industry; and (d) build sustainable capacity among banks. The project was restructured, or received Additional Financing during FY 10 The project was extended by a year to complete the activities. Progress toward achieving development objective(s): After an initial slow start, progress towards achieving development objectives has improved significantly. The Central Bank of Kosovo's institutional strengthening and sustainability have substantially improved due to the preparation of a development strategy based on market development trends and the review of the Central Bank of Kosovo's sources of funding options. The regulatory and supervisory framework has been improved due to the revision of the banking sector and regulatory framework; the assistance to the insurance sector in regard to third part liability on preparing legal framework; the detailed functional supervision and technical assessment of Compulsory Third Party Liability (CTPL) tariff liberalization; the legal framework for compulsory insurance; and the assistance to the insurance sector in regard to life insurance on preparing legal framework, regulations, and the carrying out of detailed actuarial assessment of life insurance activities and products. Strengthening the capacity of microfinance institutions has almost been achieved (11 training activities have been organized) as well as bank capacity building (7 training activities have been organized and 8 contracts signed). Given the remaining activities that need to be completed in order to achieve the project objectives and the full utilization of the project proceeds, the project was extended by a year to June 30, 2011. Lending Information/Disbursement Summary (USD millions, as of June 30, 2010) Loan/Credit/Grant Status Amount Disbursed Undisbursed Cancellation IDA-H3410 Effective 1.91 0.58 1.36 0.00 STATUS OF PROJECTS IN EXECUTION ­ FY10 EUROPE AND CENTRAL ASIA REGION