The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Enhancing Infrastructure Efficiency and Sustainability (P163760) EUROPE AND CENTRAL ASIA | Serbia | Transport Global Practice | Requesting Unit: ECCWB | Responsible Unit: IECT1 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Victor A Aragones, Katharina B. Gassner Seq No: 6 | ARCHIVED on 27-Dec-2020 | ISR44899 | Created by: Katharina B. Gassner on 10-Dec-2020 | Modified by: Katharina B. Gassner on 21-Dec-2020 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Program Development Objective is to improve the management and sustainability of select public infrastructure by strengthening government capacity and systems, upgrading assets, and increasing expenditure efficiency. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions Overall implementation progress of the financed program: PERS, MCTI, and MoF continue to make progress in the implementation of the Service Level Agreement (SLA). Supported by international consultants, a final report on the adoption of the SLA was completed. This report will be the basis for a restructuring being prepared. This SLA will include agreed service levels and key performance indicators to include in a pilot SLA which would be followed by a permanent SLA. PERS requested an advance on DLR# 3.1 (EUR 20 million) to support its maintenance operations under current pandemic conditions. In April 2020, EUR 5 million disbursement was made against DLI #7 upon acceptance of the verification report for the first batch of 39 renovated buildings, submitted by the new IVA. In December 2020, the IVA report for the second batch of 39 renovated buildings obtained Bank approval and on December 15, 2020 the Ministry of Finance was invited to submit for disbursement of another EUR 5 million via Bank letter. Status of the Transport component (modernization of road maintenance management): Completion of SLA continues to be a priority as the other project activities are in a way a result of what is agreed by PERS and GoS in the SLA. Another important area of attention is the completion of the road asset condition survey. The data collected through this survey will provide a baseline for the SLA and determine the performance to be expected from PERS. Status of the Energy Efficiency component (renovation of public buildings): In December 2020, the Bank accepted the verification report for the second batch of 39 renovated buildings, submitted by the Independent Verification Agent (IVA). The Ministry of Finance was invited to submit a withdrawal application for the second tranche of EUR 5 million under DLI#7.2. The withdrawal application is expected to be submitted at the beginning of the next fiscal year. Documentation for the third batch of 24 buildings has already been shared with the IVA and is expected to be verified within the next 2 months. Thus, the next disbursement against this indicator (amounting to about EUR 3 million for 24 buildings) could be made in Q1 2021. Disbursement continues to be delayed for DLI#5 (Adoption of a medium term national renovation plan for public buildings, EUR 4.9 million) and DLI#6 (Operationalization of a consolidated M&E system, EUR 2 million).The main reasons for delay under DLI#5 in addition to reallocation of budget funds for this activity due to the COVID 19 outbreak are personal and organizational changes in the Ministry of Mining and Energy. Following the general elections in June 2020, new minister and senior officials were appointed in late October 2020. The Ministry is currently undergoing internal reorganization, including the department for energy efficiency. Further, the Public Investment Management Office (PIMO), the implementing agency, reported the M&E system development (DLI#6) was completed, but the software is not yet fully operational. The project related data, currently held in paper form, has to be migrated online and uploaded on the server provided by the Government Office for IT and E-governance. Given the escalation of the epidemic situation and mandatory home-based work, it will take additional time to make the M&E system usable and fully operational. 12/27/2020 Page 1 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163760 IBRD-87920 Effective USD 118.60 118.60 0.00 62.36 55.45 53% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163760 IBRD-87920 Effective 02-Nov-2017 02-Nov-2017 12-Jan-2018 31-Dec-2021 31-Dec-2021 DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IBRD87920-001 Maintenance of 1,000km 1 Regular EUR 15,000,000.00 Fully Achieved 15,000,000.00 100 % of NRN by PERS Sign. of Ser. Level Ag. by 2.1 Regular EUR 5,000,000.00 Not Achieved 0.00 PERS and MCTI Adoption by PERS of 2.2 Regular EUR 5,000,000.00 Not Achieved 0.00 rolling 3-year PBMP Maint. of 2,000km of NR 2.3 Regular EUR 10,000,000.00 Fully Achieved 10,000,000.00 100 % using EM spec. Maint. of 5,000km of NRN 3.1 Regular EUR 20,000,000.00 Not Achieved 0.00 under PBMCs Adoption by PERS's SB of 3.2 Regular EUR 4,850,000.00 Not Achieved 0.00 Asset Man. Plan Adopt. & pub. by PIMO of 4 Regular EUR 3,000,000.00 Fully Achieved 3,000,000.00 100 % a PO Manual Iss. of gov. dec. on adop. 5 Regular EUR 4,900,000.00 Not Achieved 0.00 of nat. plan Monit. & eva .system for 6 Regular EUR 2,000,000.00 Not Achieved 0.00 P2 of Program Renovated first 39 7.1 Regular EUR 5,000,000.00 Fully Achieved 5,000,000.00 100 % buildings Renovated all subsuq. to Partially 7.2 Regular EUR 25,000,000.00 0.00 first 39 buil. Achieved Program Action Plan Action Description Appointment of environmental manager Source DLI# Responsibility Timing Timing Value Status 12/27/2020 Page 2 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Environmental and Social PIMO Due Date 30-Nov-2018 Completed Systems Completion Measurement Contract with qualified environmental manager Comments A new environmental manager has been hired in March 2020. Action Description State certification of PIMO procurement staff Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems PIMO Due Date 31-Oct-2017 Completed Completion Measurement State certification Comments Action Description Establish Program Steering Committee Source DLI# Responsibility Timing Timing Value Status Ministry of Mining Technical Due Date 17-Jan-2018 Completed and Energy (MME) Completion Measurement Decree by Ministry of Mining and Energy and minutes of meetings (August and November 2018) Comments Action Description Adopt Program Operations Manual Source DLI# Responsibility Timing Timing Value Status Technical PIMO Due Date 08-Oct-2018 Completed Completion Measurement PIMO management decision and publication of website as verified by IVA (DLI#4) Comments Action Description Internal environmental management guidelines Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 31-Jan-2018 Completed Systems PIMO management decision to adopt internal environmental management guidelines on January 30, 2019; PIMO Completion Measurement staff training was completed in March 2019 as per progress report. Comments 12/27/2020 Page 3 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Action Description Develop and administer annual social survey Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Recurrent Yearly In Progress Systems Completion Measurement Survey questionnaire and results Post-satisfaction survey for 68 renovated buildings was interrupted by the COVID-19 outbreak. 53 questionnaires Comments were received, and data was verified and analyzed for 36 renovated buildings. Several individual surveys will be repeated during 2020/21. Action Description Provide annual training to municipalities and contractors on program Source DLI# Responsibility Timing Timing Value Status Technical PIMO Recurrent Yearly In Progress Completion Measurement Training reports PIMO submitted a detailed training report as part of the third interim progress report Dec 2019. No training session Comments were held in 2020 due to escalation of COVID-19 outbreak and introduction of restrictive measures by the Ministry of Finance. Action Description Contractor environmental management guidelines and waste management plan Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 31-Jan-2019 Completed Systems Completion Measurement PIMO decision on adoption of guidelines and waste management plan Comments Action Description Align legal framework to ensure compliance of PBMC scope to the national framework Source DLI# Responsibility Timing Timing Value Status Technical MCTI Due Date 30-Jun-2018 In Progress Completion Measurement Completion of legal requirements to implement SLA. Due date is for update on progress towards completion of action. PERS and MCTI are working with consultant in Comments completing legal changes so the final SLA is in place by November 2020. 12/27/2020 Page 4 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Action Description Provide institutional support to develop robust road sector reform plans. Source DLI# Responsibility Timing Timing Value Status Technical PERS and MCTI Due Date 30-Jun-2018 In Progress Completion Measurement Completion of this activity in a continued basis. Due date is for update on progress towards completion of action. PERS updates WB on a rolling basis as part of Comments implementation/supervision tasks since then. Action Description Road asset condition and data in support of PBMC to enable development of PBMC scope. Source DLI# Responsibility Timing Timing Value Status Technical PERS Due Date 30-Jun-2018 In Progress Completion Measurement Completion of survey database. Due date is for update on progress towards completion of action. Asset survey is ongoing and full survey is expected Comments to by november 2020. However, according to PERS enough data will be available to support signature of final SLA. Action Description Develop attractive contract packages to enable successful competition at tender. Source DLI# Responsibility Timing Timing Value Status Technical PERS Due Date 31-Aug-2018 Completed PERS completed six PBMC lots. It will implement such contracts for entire network by the end of 2020. However, it Completion Measurement is possible to see delays due to COVID-19. Team will monitor its progress. This is a good indicator that PERS will be able to verify DLI 3.1 as implementation of these lots will be the basis for Comments implementation of PBMC per DLI 3.1. Action Description Develop capable supply chain and "buyer” to enable successful delivery of PBMC across the road network. Source DLI# Responsibility Timing Timing Value Status Technical PERS Due Date 31-Aug-2018 In Progress Completion Measurement Completion of workshops and communications with interested parties. Trainings have been provided. Comments Due date is for update on progress towards completion of action. WB team will continue to monitor on a rolling basis. Establish robust organizational arrangements for M&E PERS to assemble a PBMC Steering Committee and identify Action Description the Program Champion within its organization. Source DLI# Responsibility Timing Timing Value Status PERS and MCTI Due Date 31-Mar-2018 Completed 12/27/2020 Page 5 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Completion Measurement Comments Action Description Training of staff in environmental management tailored to Program’s needs; Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems PERS held a series of workshops where staff was trained on environmental management. Now PERS' staff will be Completion Measurement having these workshops to train other staff. Comments Action Description Ensuring there is a dedicated environmental manager position to work exclusively under the Program Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 31-Dec-2018 Completed Systems Completion Measurement PERS appointed Djordje Mitrovic Bc CE as the Environmental Manager dedicated for PforR on December 17, 2018. Comments Action Description design of the environmental management guidelines for environmental impact monitoring for PERS Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Mr. Mitrovic submitted environmental management guidelines for PERS in March 14, 2019 and WB approved in Completion Measurement March 21, 2019. Documents have been uploaded to the portal. Comments Preparing a standard environmental management and monitoring guidelines for PERS-engaged contractors on road Action Description rehabilitation works Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Mr. Mitrovic submitted environmental management guidelines for PERS engaged contractors in March 14, 2019 and Completion Measurement WB approved in March 21, 2019. Documents have been uploaded to the portal. 12/27/2020 Page 6 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Comments Action Description Preparing a standard/generic Waste Management Plan for road rehabilitation activities Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Mr. Mitrovic submitted a standard/generic waste management plan for PERS in March 14, 2019 and WB approved in Completion Measurement March 21, 2019. Documents have been uploaded to the portal. Comments Adopting a rule that written approval of the environmental compliance report is obligatory precondition for the Action Description execution of the final payment of contractors. Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 07-Jun-2019 Completed Systems PERS agreed to send a memorandum directing PERS staff to have approval of the environmental compliance report Completion Measurement as an obligatory precondition for the execution of the final payment of contractors. This task is pending proof of completion. Comments 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 Moderate Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Moderate Moderate Stakeholders Low Low Low Other -- Moderate Moderate Overall Substantial Moderate Moderate 12/27/2020 Page 7 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) RiskComments Comments The "other" risk is related to the risk introduced by COVID-19 reflecting the ongoing risk of the pandemic on this operation. Under both components, the impact of COVID-19 manifests most notably in a delay of achievements agreed. For the building renovations, the outbreak of the Covid-19 pandemic slowed down the pace of ongoing works. Some of the implemented measures caused delays in work plans, and border closure made the procurement of materials difficult. Reasons for delays, include restrictions on the number of workers who can perform work indoors and temporary suspension of work in some social welfare institutions. In addition, a slower pace of payment to the Contractor and a longer period for the approval for unforeseen works, is observed due to mandatory approvals by the MoF under new rules for budget control. Results PDO Indicators by Objectives / Outcomes Improve the management and sustainability of select public infrastructure IN00934587 ►Enhanced motorist satisfaction through better pavement condition by IRI<2.5 (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7,000.00 Date 30-Nov-2017 29-Jun-2020 20-Dec-2020 31-Dec-2020 Comments IN00934588 ►Implementation of an SLA between MCTI and PERS defining agreed maintenance and financing (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2017 29-Jun-2020 20-Dec-2020 31-Dec-2019 Comments IN00934589 ►Projected lifetime energy savings (in renovated public buildings) (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 330,996.00 402,780.30 1,100,000.00 Date 30-Nov-2017 06-May-2020 15-Dec-2020 31-Dec-2020 Value in ISR based on 103 public buildings submitted as part of fifth PIMO interim progress report; buildings and related savings submitted for verification/disbursement may be different. Comments IN00934590 ►Renovated buildings that meet Class C (or 2 classes higher) energy performance certificate (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/27/2020 Page 8 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Value 39.00 79.00 103.00 234.00 Date 30-Nov-2017 06-May-2020 15-Dec-2020 31-Dec-2020 A list of 103 public buildings that meet building class C or two classes higher compared to baseline were Comments reported in the fifth progress report. Verification was done for 78 reconstructed buildings. Intermediate Results Indicators by Results Areas PBMC IN00934817 ►Length of national roads maintained (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000.00 3,000.00 8,000.00 Date 15-May-2018 29-Jun-2020 20-Dec-2020 31-Dec-2020 Maintenance of the first 2000 km are related to DLI and were done according to its network in accordance with the contractual specifications. The contracts executed would ensure, as a minimum, that during the Project implementation period no potholes remains open, no edge break occurs between the pavement and Comments the shoulders and that all horizontal marking and vertical signs are adequately restored, in order to comply with the most critical road safety requirements. IN00934819 ►Completion of road asset survey (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,755.00 9,000.00 9,000.00 14,894.00 Date 30-Nov-2017 29-Jun-2020 20-Dec-2020 31-Dec-2018 Survey is ongoing and is expected to be completed during 2020. Basic data will be available for PERS to Comments sign a SLA with MCTI towards the end of 2020. IN00934821 ►Completion of PERS’ 3-year business (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Nov-2017 05-Mar-2018 05-Mar-2018 31-Dec-2019 Comments IN00934823 ►Completion of PERS' asset management plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2017 29-Jun-2020 20-Dec-2020 31-Dec-2020 12/27/2020 Page 9 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Comments IN00934825 ►Road safety inspection carried out and safety measure implemented (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 30-Nov-2017 29-Jun-2020 20-Dec-2020 31-Dec-2020 Comments Building EE Component IN00934816 ►Reduction of associated CO2 emissions from energy saved in renovated buildings (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 109,595.12 158,086.67 19,000.00 Date 30-Nov-2017 06-May-2020 15-Dec-2020 31-Dec-2020 As per results achieved for 103 renovated buildings meeting building performance class C or two classes Comments higher, submitted along with the fifth progress report IN00934818 ►Estimated direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 464,237.00 506,274.00 1,381,000.00 Date 30-Nov-2017 06-May-2020 15-Dec-2020 31-Dec-2020 Based on results achieved for 103 renovated buildings submitted along with the fifth progress report; 55 Comments percent of beneficiaries are female. IN00934820 ►Completed and approved bidding documents, including technical designs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 285.00 250.00 234.00 Date 30-Nov-2017 06-May-2020 15-Dec-2020 31-Dec-2020 Based on information provided in the fifth progress report. Comments IN00934822 ►Government adoption of a medium-term national plan for the renovation of public buildings (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Medium-term national Value No national plan No national plan No national plan plan adopted Date 30-Nov-2017 06-May-2020 15-Dec-2020 31-Dec-2020 Following the general elections held in June 2020, new Minister and senior officials were appointed in late Comments October 2020. Ministry of Mining and Energy is currently undergoing internal reorganization. 12/27/2020 Page 10 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) IN00934824 ►Stakeholder satisfaction with program and reporting of positive socioeconomic benefits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.40 86.22 98.00 Date 30-Nov-2017 06-May-2020 15-Dec-2020 01-Feb-2021 The average satisfaction rate with the renovation works slightly increased. Additional surveys are planned for January Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 PERS Completes maintenance of 1000 km of national road network (Output, 17,791,500.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 1,000.00 1,000.00 -- Date -- 29-Jun-2020 20-Dec-2020 -- PERS provided evidence of results achieved for DLI1. The World Bank accepted the evidence furnished in fulfillment of the withdrawal conditions and confirmed the achievement of Disbursement Linked Results Comments #1. The loan proceeds allocated to this DLR (EUR 15 million) were used to partially settle the amount of the previously disbursed amount. ►DLI 2 Service Level Agreement (SLA) between PERS and MCTI is signed. PERS Adopts its 3-year Business Plan PERS Completes maintenance of2000 km of national road network using enhanced road maintenance contra (Output, 23,722,000.00, 42%) Baseline Actual (Previous) Actual (Current) 2020 Value No No No -- Date -- 29-Jun-2020 20-Dec-2020 -- PERS completed DLI 2.3. It is still working to complete 2.1 and 2.2. Comments ►DLI 3 Adoption of the asset management plan for PERS and 5000 km of the national road network managed by PERS is maintained using PBMC (Output, 29,474,585.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value No No No Yes Date -- 29-Jun-2020 20-Dec-2020 -- This semester, PERS requested an advance towards DLI 3.1. Advance was processed and disbursed for a Comments total of EUR 20 million. 12/27/2020 Page 11 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) ►DLI 4 Adoption and publication by PIMO Management of a Program Operations Manual (Output, 3,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 No documented program POM adopted and POM adopted and Value -- procedures published published Date -- 29-Jun-2020 29-Jun-2020 -- DLI 4 was met on October 8 with PIMO management adoption and publication of the POM. Confirmation of Comments results achievement was issued on February 20, 2019 and withdrawal application submitted on May 24, 2019. ►DLI 5 Issuance of a Government Decision on the Borrower's adoption of a medium-term national plan for the renovation of public buildings, and its publication in the Official Gazette (Output, 4,900,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Preparation of strategy Preparation of strategy has been suspended due has been suspended due to Covid-19 related Value No strategy in place to Covid-19 related budget -- budget reallocation within reallocation within Ministry Ministry of Mining and of Mining and Energy. Energy. Date -- 06-May-2020 15-Dec-2020 -- Following the Parliamentary elections held in June 2020, new Minister and senior officials were appointed in late October 2020. Ministry of Mining and Energy is currently undergoing internal reorganization. Comments ►DLI 6 Design and operationalization of consolidated program monitoring and evaluation system (Process, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 M&E software installation M&E software installation Value No consolidated system to be completed July 31, to be completed July 31, -- 2020. 2020. Date -- 06-May-2020 15-Dec-2020 -- M&E system is not fully operational. PIMO staff is transferring project related data and collecting feedback for Comments further improvement of the M&E software. ►DLI 7 Renovated buildings meeting national building regulations and C Class (Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 79.00 79.00 234.00 Date -- 06-May-2020 15-Dec-2020 -- First disbursement of EUR 5 million against DLI #7 (39 completed buildings) was made in April 2020. PIMO submitted Verification Report and Results Achievement Notification letter, dated November 30, 2020, for the Comments second batch of 39 renovated buildings on December 1, 2020. The Bank confirmed achievement of the results under DLI 7.2 to the Ministry of Finance in a letter dated December 15, 2020. 12/27/2020 Page 12 of 12