The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Second Municipal Services Improvement Project (P154464) EUROPE AND CENTRAL ASIA | North Macedonia | Urban, Resilience and Land Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 12 | ARCHIVED on 25-May-2021 | ISR46732 | Implementing Agencies: Project Management Unit, The Republic of North Macedonia Key Dates Key Project Dates Bank Approval Date: 11-Jan-2016 Effectiveness Date: 14-Jul-2016 Planned Mid Term Review Date: 15-Sep-2019 Actual Mid-Term Review Date: 16-Sep-2019 Original Closing Date: 31-Mar-2021 Revised Closing Date: 30-Sep-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective of MSIP2 Project (PDO) is to improve transparency, financial sustainability and inclusive delivery of targeted municipal services in the participating municipalities. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Municipal Investments Sub-loans:(Cost $20.76 M) Poverty/Social Inclusion Investment Grants:(Cost $5.53 M) Project Management, Monitoring and Evaluation, and Capacity Building:(Cost $1.68 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The loan for the Second Municipal Services Improvement Project (MSIP2) in the amount of EUR25 million was approved by the World Bank Board of Executive Directors on January 11, 2016; the loan agreement was signed on January 14, 2016, and the Project was declared effective on July 14, 2016. The Project development objective is to improve transparency, financial sustainability, and inclusive delivery of municipal services across the country. The project implementation is now fully on track. The Project demonstrates a positive dynamic and has successfully overcome the delays that occurred during the first years of its implementation, with accelerated disbursement and progress towards achieving the development objective 5/25/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) targets. It is also acknowledged, however, that the project implementation progress can be affected by lockdown measures introduced in response to the COVID-19 pandemic in the country, region, and worldwide. MSIP2 provides sub-loans to municipalities for infrastructure investments such as water supply, sewerage, solid waste management, local roads, energy efficiency improvements to municipal buildings, and other high-priority municipal infrastructure investments with a clear impact on the welfare of citizens and efficiency of services. All municipalities are eligible and were encouraged to participate in the MSIP2 and apply for the sub- loans through three Calls of Proposals. To date, as a result of these three Calls for Proposals, the Ministry of Finance signed 37 sub-loan agreements with 36 municipalities. Out of them, 26 sub-loan agreements with 25 municipalities were signed as a result of the first two Calls for Proposals, and 11 more sub-loan agreements with 11 municipalities were signed following the last (third) Call for Proposals that was announced in September 2020. Sixteen sub-loan financed subprojects of fifteen municipalities have already been completed, while others are at different stages of implementation. Types of completed subprojects include construction and reconstruction of local roads (58%), reconstruction/energy efficiency of public buildings (11%), solid waste management, maintenance of public hygiene, and procurement of other utility vehicles and equipment (11%), water supply (5%), stormwater (5%), and street lighting (2%). The Project also introduced a grant component to enhance service delivery and infrastructure for poorer and marginalized communities within municipalities throughout the country. The identification of these communities is done on the basis of "urban mapping" and urban audits launched in the project participating municipalities with the support of an independent consultant hired by the Project Management Unit. The urban mapping is aimed to determine the poorest settlements and communities in the municipality’s area and their priority investments which will be financed from the grants. To date, 23 municipalities out of 25 municipalities with signed sub-loan agreements under the first two calls for proposals have already prepared the "urban mapping". Furthermore, six municipalities that applied under the third (last) call have also already started “urban mapping” process. Out of them, 21 municipalities have signed their grant agreements for the implementation of 26 grant-financed subprojects. Nine subprojects in six municipalities have been successfully completed, eight are under implementation, and nine more are at the procurement stage. The types of completed grant-financed subprojects included: construction and reconstruction of local roads (56%), water supply and stormwater (11%) and solid waste management, maintenance of public hygiene, and procurement of other utility vehicles and equipment (33%). The total number of people who benefited from the MSIP2-financed subprojects exceeded 119 thousand, and 49 percent of the project beneficiaries are women. The project also contributed to the generation of 1,779 jobs, measured as the number of employees of contractors and engineering companies that perform works under the sub-projects. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other -- High Moderate Overall Moderate Moderate Moderate Results 5/25/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) PDO Indicators by Objectives / Outcomes Improve transparency of targeted municipal services in the participating municipalities IN00993724 ►Number of participating municipalities (i.e. the municipalities which signed sub-loan agreements) that regularly publish sub-project progress information on their official websites or elsewhere (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 36.00 29.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 Improve financial sustainability of targeted municipal services in the participating municipalities IN00993725 ►Percentage of completed subprojects that generated improved financial performance, including through increased revenue earnings or cost savings (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 51.00 90.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 First data to be reported after completion of first sub-loan financed subprojects that is expected in Comments: October-November 2019 Improve inclusive delivery of targeted municipal services in the participating municipalities IN00993771 ►Number of the completed sub-projects that focus on social inclusion (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 9.00 25.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 First social inclusion grant financed sub-project are expected to be completed by... Comments: IN00993772 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 49,823.00 119,637.00 120,000.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 Includes beneficiaries from both sub-loan and grant-financed investments Comments: IN00993773 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target 5/25/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Value 0.00 49.00 49.00 50.00 IN00993774 Vulnerable/marginalized people with marginalized measured as the number of unemployed, social assistance receiving or in other ways vulnerable population that benefits from the project intervention (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.10 12.00 10.00 Intermediate Results Indicators by Components Municipal Investments Sub-loans IN00993775 ►Number of sub-loans signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 37.00 29.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 IN00993777 ►Number of jobs generated, measured as the number of employees of contractors and engineering companies that perform works under the sub-projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,529.00 1,779.00 1,800.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 Number of employees of contractors and engineering companies under ongoing contracts Comments: IN00993779 ►Number of visits to websites that publish sub-project progress information (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 342,521.00 502,000.00 500,000.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 31-Mar-2021 The value of indicators includes the number of visits to the websites and municipal facebook. In addition to tracking and reporting this indicator, the PMU is conducting an inventory of tools and feedback mechanisms actively used by the citizens in relation to the ongoing MSIP2 subprojects. These mechanisms include: open days with the executive; open telephone line; reporting a problem online; Comments: municipal notice boards; municipal leaflets; field meetings; municipal websites/social media and complain boxes. While leaflets, boards, and websites/municipal and social networks are mostly used as tools for dissemination of the information, the telephone lines, meeting with the executives, complain boxes and the report a problem online are used as methods for receiving grievances and complaints by the citizens. IN00993781 ►Piped household water connections that are benefiting from rehabilitation works undertaken by the project (Number, Custom) 5/25/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2,055.00 600.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 The indicator will start to demonstrate the progress after completion of the corresponding types of Comments: investment subprojects. IN00993783 ►Roads rehabilitated, Rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.80 15.30 30.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 IN00993784 ►Roads rehabilitated, Non-rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.02 11.10 20.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 Poverty/Social Inclusion Investment Grants IN00993776 ►Number poverty/social inclusion investment grants signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13.00 23.00 25.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 IN00993778 ►Number of sub-projects, financed by sub-loans or grants, successfully completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 29.00 54.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 IN00993780 ►Number of participants in consultation activities during sub-projects preparation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,326.00 2,145.00 1,600.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 5/25/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) The PMU is monitoring data related to two CE indicators under MSIP2: “number of participants in consultation activities during sub-projects preparation” and “number of visits to websites/facebook pages that publish sub-project progress information”. Both of these indicators are demonstrating positive results with the number of visits to the websites/facebook pages reached 502,000 and met the target of 500,000. The number of participants in consultation activities reached 2,145 by May 2021. The proactive approach of the PMU reflected to increase of women in the participation activities. Women’s participation has been Comments: increased through several different measures. The municipalities that applied under the third Call for Proposals were encouraged to specifically target and invite women to the public hearings. Furthermore, while conducting polls for citizen satisfaction, the municipalities are encouraged to include women. The PMU also raised the issue of women’s participation with the consultant for the Urban Audit who also supported municipalities to consult women while determining the priority problems of the poorest settlements. IN00993782 Number of participants in consultation activities during sub-projects preparation - female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 299.00 789.00 500.00 Date 31-Dec-2015 30-Oct-2020 17-May-2021 30-Sep-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154464 IBRD-85610 Effective USD 28.04 28.04 0.00 16.54 12.07 58% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154464 IBRD-85610 Effective 11-Jan-2016 14-Jan-2016 14-Jul-2016 31-Mar-2021 30-Sep-2022 Cumulative Disbursements 5/25/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 05-Aug-2020 ,Level Approved on 06-Aug-2020 Related Project(s) There are no related projects. 5/25/2021 Page 7 of 7