Document of The World Bank Report No: 17764-MK PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT TO THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA IN TIE AMOUNT OF SDR 750,000 EQUIVALENT FOR A PENSION REFORM TECHNICAL ASSISTANCE PROJECT JUNE 12, 1998 Human Development Sector Unit Europe and Central Asia Region CURRENCY EQUIVALENTS (As of May, 1998) Currency Unit = Denar US$ = 55.65 Denar AVERAGE EXCHANGE RATES Denar per US$1 (Period Average) 1995 1996 1997 1998 38.1 39.9 49.4 56.2 WEIGHTS AND MEASURES Metric System FORMER YUGOSLAV REPUBLIC OF MACEDONIA FISCAL YEAR January I - December 31 ABBREVIATIONS AND ACRONYMS MOLSP Ministry of Labor and Social Policy SSAC Social Sector Adjustmenit Credit PERTAP Pension Reform Technical Assistance Project CAS CouLntry Assistance Strategy USAID United States Agency for International Development Vice-President: Johannes Linn Country Director: Ajay Chhibber Sector Director: Christopher Lovelace Sector Leader: Michal Rutkowski Program Team Leader: Mansoora Rashid FORMER YUGOSLAV REPUBLIC OF MACEDONIA PENSION REFORM TECHNICAL ASSISTANCE PROJECT CONTENTS A: PROJECT DEVELOPMENT OBJECTIVE ..................................................................................2 I. PROJECT DEVELOPMENT OBJECTIVE AND KEY PERFORMANCE INDICATORS (SEE ANNEX 1): ..................................................................2 2. KEY PERFORMANCE INDICATORS ..................................................................................2 B: STRATEGIC CONTEXT ..................................................................................2 I. SECTOR-RELATED COUNTRY ASSISTANCE STRATEGY (CAS) GOAL SUPPORTED BY THE PROJECT (SEE ANNEX 1) ..................................2 2. MAIN SECTOR ISSUES AND GOVERNMENT STRATEGY: .................................................................................2 3. SECTOR ISSUES TO BE ADDRESSED BY THE PROJECT AND STRATEGIC CHOICES .................................................................................. 3 C: PROJECT DESCRIPTION SUMMARY ..................................................................................3 1. PROJECT COMPONENTS .................................................................................3 2. KEY POLICY AND INSTITUTIONAL REFORMS SUPPORTED BY THE PROJECT ..................................................................................4 3. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS ..................................................................................4 D: 'PROJECT RATIONALE ................................................................................. 4 I. PROJECT ALTERNATIVES CONSIDERED AND REASONS FOR REJECTION .................................................................................. 4 2. MAJOR RELATED PROJECTS FINANCED BY THE BANK AND/OR OTHER DEVELOPMENT AGENCIES ............................................................5 3. LESSONS LEARNED AND REFLECTED IN THE PROJECT DESIGN: ..................................................................................5 4. INDICATIONS OF BORROWER COMMITMENT AND OWNERSHIP ..................................................................................5 5. VALUE ADDED OF BANK SUPPORT IN THIS PROJECT: ..................................................................................5 E: SUMMARY PROJECT ANALYSIS ......... ........................................................................5 1. FISCAL ............................................................................. .....5 2. INSTITUTIONAL ..................................................................................6 3. ENVIRONMENTAL ASSESSMENT ........ .........................................................................6 4. PARTICIPATORY APPROACH ....... ..........................................................................6 F: SUSTAINABILITY AND RISKS ..................................................................................6 1. SUSTAINABILITY ..................................................................6 2. CRITICAL RISKS ....................................................................6 3. POSSIBLE CONTROVERSIAL ASPECTS ..................................................................................7 G: MAIN LOAN CONDITIONS ................................................................................. 7 I. EFFECTIVENESS CONDITIONS ..................................................................................7 2. OTHER ........ ..........................................................7 H. READINESS FOR IMPLEMENTATION ................................................................................. 8 1. COMPLIANCE WITH BANK POLICIES .................................................................................9 ANNEXES: ANNEX I PROJECT DESIGN SUMMARY ANNEX 2 DETAILED PROJECT DESCRIPTION ANNEX 3 ESTIMATED PROJECT COSTS ANNEX 4 PROCUREMENT AND DISBURSEMENT ARRANGEMENTS TABLE A PROJECT COSTS BY PROCUREMENT ARRANGEMENTS TABLE Al CONSULTANT SELECTION ARRANGEMENTS TABLE B THRESHOLDS FOR PROCUREMENT METHODS AND PRIOR REVIEW TABLE C PROCUREMENT SCHEDULE TABLE D ALLOCATION OF THE PROCEEDS OF THE LOAN TABLE E DISBURSEMENT SCHEDULE ANNEX 5 PROJECT PROCESSING BUDGET AND SCHEDULE ANNEX 6 DOCUMENTS IN PROJECT FILE ANNEX 7 STATEMENT OF LOANS AND CREDITS ANNEX 8 COUNTRY AT A GLANCE MAP IBRDNO. 25501R FORMER YUGOSLAV REPUBLIC OF MACEDONIA PENSION REFORM TECHNICAL ASSISTANCE PROJECT Project Appraisal Document Europe and Central Asia Region Human Development Unit Date: June 9, 1998 Team Leader: Mansoora Rashid Country Director: Ajay Chhibber Sector Director: James Christopher Lovelace Project ID: MK-PE-58056 Program Objective Category: EA Sector: Human Development Lending Instrument: Technical Assistance Credit Program of Targeted Intervention: [ J Yes [x ] No Project Financing Data [ Loan [x] Credit [] Guarantee [i3 Other [Specify] For Loans/Credits/Others: Amount (USSm/SDRm): US$ I milliton/SDR 750,000 Proposed terms: [x] Multicurrency [ Single currency, specify Grace period (years): 10 1 Standard [ Fixed [ ] LIBOR-based Variable Years to maturity: 35 Commitment fee: 0.00-0.50% Service charge: 0.75% Financing plan: US$ 1.4 million :;::So ~ - : buree.: - : - Local Foreign Total Government 0.40 0.00 0.40 IDA 0.11 0.89 1.00 Total 0.51 0.89 1.40 Borrower: Former Yugoslav Republic of Macedonia Responsible agency(ies): Ministry of Labor and Social Policy Estimated disbursements (IDA FY/[JS$M): 1999 2000 Annual 0.7 0.3 Cumulative 0.7 1.0 Project implementation period: two years (October 1, 1998-September 30, 2000) Expected effectiveness date: September, 1998 Expected closing date: March, 2001 Page 2 A: Project Development Objective 1. Project development objective and key perfornmance indicators (see Annex 1). The objective of the Project is to support the design and implementation of the Borrower's pension pollicy reforms under the Borrower's Social Sector Adjustment Program. Specifically, the Pension Reform Technical Assistance Project (PERTAP) would support: (a) the design of the pension policy reforms under the EBorrower's Social Sector Adjustment Program, and the development of the necessary legislation to this effect; and (b) build capacity in the Ministry of Labor and Social Protection (MLSP) and the Pension Fund. 2. Key Performance Indicators. The key performance indicators of the project include the preparation of legislation for a reformed public system and the framework legislation for a private funded pension system. Related indicators are a financing plan for pension reform, well trained personnel capable of administering the transition to a funded private pension pillar; a public information campaign to involve and inform the public and other stakeholders about the needs, goals and objectives of the pension reform program. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project (see Annex 1): CAS document number: 14379-MK Date of latest CAS discussion: April 19, 1995 The reform of social sector programs is an integral part of the Country Assistance Strategy (CAS) agreed between the World Bank and the former Yugoslav Republic of Macedonia and are also in line with the draft CAS to be discussed by the Board in August, 1998. The broad goals of this strategy are to stimulate economic activity through a consolidation of fiscal gains and the promotion of private sector development. A reforn of social sector programs, particularly pension reform, that would improve the long term financial viability of the pension fund, and would allow a move to a funded private pension pillar is identified in the CAS as critical for achieving these objectives. The objectives of the PERTAP, which supports the implementation of the Social Sector Adjustment Credit, and are identified above, are therefore exactly those of the Government's social sector reform program identified in the CAS. 2. Main sector issues and Government strategy: The key sector issues are high payroll tax rates required to support the existing public pension prograim which raise labor costs in the country, and, unless reformed, increasing deficits in the public pension fund. The financial problems of the pension fund would ensue as a result of (i) benefit/eligibility provisions which are high relative to what the country can afford under current economic conditions; and (ii) a gradual aging of the population. The Government strategy is to reform the public pension system to improve its long run financial viability and to introduce a funded private pension pillar to ensure the sustainability of pension benefits. This reform would, in the long run, allow contributions to be closely linked to pension benefits, reducing labor market distortions, allow a long term balance in the public pension system, and deepen capital markets in the country 3. Sector issues to be addressed by the project and strategic choices: The proposed technical assistance project addresses two key issues that are a pre-requisite for pension reform. These are (i) the design of the pension reform program, including the actuarial forecasting and economic planning of the reform; and (ii) the legislation required to underpin the reform. These issues are Page 3 the essential building blocks of the reform process. C: Project Description Suimmary 1. Project components (see Annex 2 for a detailed description and Annex 3for a detailed cost breakdown): 1. Pension Reform Design: This Institutional 0.66 47 0.49 49 component would: (a) assist in the Development identification and evaluation of different options and resolution of design issues for the reform of the public pension scheme and For the introduction of a private funded scheme; (b) facilitate the training of the Pension Reform Steering Committee to design the reiformed public pension and the privately funded pension systems, and train the Actuarial Unit in forecasting the financial requirements of particular options; (c) support the development of the financing plan for pension reform, and (d) design the public information campaign. This component would finance consultant services, including technical assistance and training of trainers. 2. Legislative Framework: This Institutional 0.54 39 0.40 40 component would support: (a) the Development development and introduction of the legislative framework to reform the public system; (b) in addition the project would support the development of the private pension legislation and assist the Government in its passage; and (c) the implementation of the public information campaign prepared in component 1, including training seminars. This component would finance consultant services including technical assistance, training of trainers, and training seminars. Page 4 3. Project Management This Project 0.20 14 0.11 11 component would provide overall Management coordination of project activities and general loan administration. This component would finance consultant services, project audits, and equipment. PC director salary and operating costs would be financed by the Government. 2. Key policy and institutional reforms supported by the project: The PERTAP provides technical assistance support critical for the implementation of pension policy reforms. These reforms form an essential component of the Social Sector Adjustment Program being supported by the proposed Social Sector Adjustment Credit (SSAC). 3. Institutional and implementation arrangements: The project would be managed by the Ministry of Labor and Social Policy. Establishment of a P'roject Coordinating Unit (PCU), appointment of a Project Director, and hiring a Project Coordinator are conditions of effectiveness. The Project Director (PD) would report directly to the Minister of Labor and Social Policy and would be appointed under terms of reference, experience and qualifications satisfactory to IDA. The PD would be the main counterpart for the purposes of the PERTAP and would be responsible for ensuring the technical quality of the proposed project outputs. A PCU would be established and a Project Coordinator (PC) hired as a consultant to head the PCU. The PC would be appointed under terms of reference, and qualifications satisfactory to IDA. The PC would report directly to the Project Director and would be responsible for administering and coordinating the project activities. It is expected that the PC may need some training in project management, implementation, procurement, disbursement, accounting and auditing procedures. Arrangements for in-country training or study tours have been proposed. In addition as needed a short term staff could be appointed. Salaries of the PD, short term staff and Operating Costs of the PCU would be financed by the Government. PC fees and some equipment would be financed by the credit. D: Project Rationale 1. Project alternatives considered and reasons for rejection: The alternatives considered were (i) to proceed without a technical assistance credit or (ii) increase the amount of the technical assistance credit. The first alternative was rejected because the Government considers it too risky to proceed with pension reform without technical assistance to support an important and complicated reform of the pension system. Additional technical assistance, particularly in developing regulatory agencies, specifying the regulatory process, implementation of the legislative reforms, and complementary reforms in financial markets would be required. However, as the credit amount is not sufficient for fully supporting the government's pension reform program, IDA will make every effort to assist the Government in obtaining resources to implement its reform program (through its own Page 5 instruments or through other donors). 2. Major relatedprojects financed by the Bank and/or other development agencies (completed, ongoing and planned): Implementation Development Progress (IP) Objective (DO) IDA-financed Social Protection/Labor Social Reform and S S Technical Assistance Credit Social Protection/Labor Social Sectors n.a. n.a. Adjustment Credit (proposed) Other development agencies USAID Pension Reform Project NA NA IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) n.a. not available NA Not Applicable 3. Lessons learned and reflected in the project design: The key lesson learned and reflected in the project design is that support of proposed policy reform (under the SSAC) and their ownership by the Government require technical assistance, institutional capacity building, and training ojfpolicy makers. 4. Indications of borrower commitment and ownership: The indications of borrower commitment are the completion of the key first tranche conditions of the Social Sector Adjustment Credit, and satisfactory progress on the on-going Social Reform and Technical Assistance Project. The borrower commitment and ownership is also indicated by the urgent request for technical assistance and support for the pension reform process, and the Government's willingness to trade limited IDA resources for technical assistance instead of balance of payments support. 5. Value added of Bank support in this project: The Government and IDA have been engaged in pension policy dialogue since 1993. IDA has therefore been an active supporter, both in terms of financial resources, as well as policy advice in the country's pension reform process. IDA therefore has considerable value added in supporting this next phase of pension reform of the Government. IDA would, however, liaise with other donors, such as USAID, in assisting the Government design and implement its pension reform program. E: Summary Project Analysis (Detailed assessments are in the project file, see Annex 8) 1. Fiscal See SSAC documentation and annexes for the financial implications of the policy reforms supported by the SSACIPERTAP. Page 6 2. Institutional: a. Executing agencies: Ministry of Labor and Social Policy (MOLSP) b. Project management: Project Management would be provided by a Project Coordination Unit. 3. Environmental assessment: Environmental Category []A []B [x] C 4. Participatory approach: The project is the result of an intense consultation process carried out through the on-going Social Reform Technical Assistance Project, the preparation of the SSAC, and USAID financed Technical Assistance for pension reform. These projects have provided ample opportunities for discussion of the issues and the requirements of pension reform with pensioners and workers unions and parliamentarians. Most recently, parliamentarians participated with MOLSP officials in a study tour of pension reforrn in other Eastern European countries. Public opinion polls have also been initiated in the Social Reform Technical Assistance Project to gauge public reaction to social sector reforms. This project would, by developing pubic information campaigns around stakeholder concerns, create a more participatory process for pension reform. a. Primary beneficiaries and other affected groups: The Working Age population and new entrants to the labor force would benefit the most by the reform program. b. Other key stakeholders: Government, parliamentarians, the private sector and population at large F: Sustainability and Risks I. Sustainability: There are no recurrent cost implications of this project 2. Critical Risks (reflecting assumptions in the fourth column of Annex 1): ,00 IMMEMMMm"RskRarni imzaio Ma Annex 1, cell "from Outputs to Objective" The main risk is that despite passage of M Public Information Campaign, legislation the implementation of the reform designed with a stakeholder might slow down or cease, as a result of assessment, would help address the faltering political consensus, and revised concerns of, educate, and gamer Governmental priorities, regarding the need and support from, stakeholders for thie objectives of pension reform. reform process. The second major risk is that economic M This risk can only be mitigated by conditions may not improve sufficiently to factors external to this operation. facilitate the reform process, and that there would be no changes in policy due to changes in Government after elections. Page 7 ;~~Rs Ris Rat;-ing Rsk+ M-iizto Mea-u The third risk is that financial institutions, such M Further technical assistance and as banks, may not have the requisite standards policy reform of the financial sector to safeguard pension fund assets. In addition in conjunction would be required regulatory agencies and the regulatory (foreseen to be supported by the framework required to underpin the reform may next FESAC) to develop the not be developed in coordination with the regulatory agencies and framework pension reform process. necessary to supervise private pension funds. Annex 1, cell "from Components to Outputs" The main risk is that the institutional capacity to M The Ministry of Labor and Social carry out reforms may not develop sufficiently Policy would have to ensure rapidly or in a sustained fashion required for adequate staffing to facilitate reform the development of the pension reform program efforts. The second main risk is that the project M The Ministry of Labor and Social management unit may take considerable time to Policy would hire and train a be established and therefore delays in project Project Coordinator. processing may ensue that vvould slow down the pace of revision and the writing of new legislation, as well as the training required for the design of the pension reform program Overall Risk Rating M _ Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk) 3. Possible Controversial Asspects: None G: Main Loan Conditions 1. Effectiveness Conditions: * Establishment of a PCU. * Appointment of a Project Director with qualifications, experience, and terms of reference satisfactory to IDA. * Hiring a Consultant as a Project Coordinator with qualifications and terms of reference satisfactory to IDA. 2. Other [classify according to covenant types used in the Legal Agreements.]: * The Borrower shall at all times during Project Implementation establish and maintain the PCU with resources and terms of reference satisfactory to IDA, a Project Director, with qualifications, experience and terms of reference satisfactory to IDA, and a Project Coordinator with qualifications, and terms of reference satisfactory to IDA, (Article III, Section 3.06 of the Credit Agreement). * The Borrower shall maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators agreed with IDA (Article III, Section 3.04 (a) of the Credit Agreement). * The Borrower shall prepare and submit to IDA Quarterly and Annual Progress Reports, presenting an Page 8 overview of steps accomplished in the previous period, an update on the previous period's report, and next steps and targets for the coming period, and alert IDA and the Government of any problerns or issues requiring special attention. (Article III, Section 3.05 of the Credit Agreement) * The Borrower shall prepare under terms of reference satisfactory to IDA a Mid Term Review report by August, 1999, and discuss the said report with IDA by September, 1999 (Article III, Section 3.04 (b) and (c) of the Credit Agreement). * The Borrower shall procure services of an independent auditor under terms of reference satisfactory to IDA. The Borrower shall also facilitate annual audits and furnish to IDA no later than six months after the end of its fiscal year, an annual audit report (Article IV of the Credit Agreement). H. Readiness for Implementation [ ] The engineering design documents for the first year's activities are complete and ready for the start of project implementation. [x ] Not applicable. [x ] The draft terms of reference for the first year's activities are ready for project implementation. The procurement documents are under preparation. [ ] The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality. [x ] Not applicable [ ] The following items are lacking and are discussed under loan conditions (Section G): 1. Compliance with Bank Policies [x ] This project complies with all applicable Bank policies. Program Team Leader: Mansoora Rashid Sector Director: Chris Lovelac Country Director: Ajay Chhibber Annex 1 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Project Design Summary Na-r-tive Su-mary. Key Pifo e Iiators - Montoringndalaon CritiCa Assu Sector-related CAS Goal: (Goal to Bank Mission) Macro-economic and fiscal Financial solvency of the Statistical Office of Sustained commitment for stability; and flexible labor pension fund, and improved Macedonia reform. markets. labor rnarket conditions. Pension Fund Actuarial Unit Ministry of Finance Project Development (Objective to Goal) Objective: Improved long term The development of a Statistical Office of Political stability continues viability of the pension funded privately managed Macedonia and economic growth benefits. pension system. Pension Fund resumes. Actuarial Unit Financial and political Ongoing public pension Actuarial projections for commitment for pension reform program. pension system reform continues. Popular support for pension reform program developed through the Public Information Campaign. Outputs: (Outputs to Objective) Financing Plan for Legislation for reformed New laws adopted and Political and economic Transition to Private Pillar public system. published. stability continues. System. Legislation for private Public pension reform funded pensions. Conditions for pensions Financial and political legislation. The financing plan. related to SSAC second commitment for pension Legislation for private Actuarial Unit and Steering tranche conditions met. reform continues. funded pension system. Committee trained. Public information Public Information campaign ongoing. Campaign is successful in identifying issues that need Supervision Missions to be addressed in obtaining public support for pension Quarterly and Annual reform. Progress Reports Adequate capacity for Mid-Term Review reform developed in the Ministry of Labor and Annual Audits Social Policy. Project Components/Sub- Inputs: (budget for each (Components to Outputs) components: component) 1. Pension Reform Design Evaluation of options for US$660,000 Conditions for pensions There is adequate support public and private pension related to SSAC second from Government schemes and their tranche conditions met economists/lawyers to the economic, fiscal and pension reform team in financial impact. Hiring of qualified preparing the pension Actuarial simulations consultants. reform program. Training of Actuarial Unit Training of Steering Supervision Coordination between Committee for Pension Ministries in the Public Reform. information Campaign Development of a financial plan for pension reform. Design of Public Information Campaign. 2. Legislative Framework US$540,000 Development Development of revised Conditions for pensions There is adequate support Public Pension Law. related to SSAC second from Government Development of Legal tranche conditions met. economists/lawyers to the Framework for Private pension reform team in Funded Pension Systems. Hiring of qualified preparing the pension Support for Passage of consultants. reform program. Legislation. Public Infornation Supervision Public Information Campaign. Campaign helps support passage of legislation. 3. Project Management US$200,000 Overall Coordination of Project coordinator hired. Project Activities including Training in procurenment and undertaking procurement, Progress Reports disbursement methods for preparing application for project manager is timely. disbursement, maintaining Annual Audits project accounts, arranging timely audit, monitoring Supervision overall loan implementation and preparing timely reports. Annex 2 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Project Description Project Component 1 - USSO.66million (total cost of component) Pension Reform Design. The objective of this component is to support the design of the pension reform program This involves, given the choice already made by the Government to move to a funded private pension system, (i) developing the exact design of the pension reform program; (ii) developing the actuarial capacity to inform the selection of the pension reform design; (iii) developing a financing plan for the transition; and (iv) developing a public information campaign to inform the public about the objectives and goals of the reform program. Specifically, the design of the new pension system would involve the following actions: (i) Design of the pension reform program. This sub-component would assist the Steering Committee for Pension Reform to develop alternate pension reform options and decide on the ultimate design of the reformed pension system. This would involve identifying the steps that need to be taken towards a full reform of the pension system and find solutions to issues that arise at each one of these steps. For the public system design issues involve retirement age, age exclusive retirement, penalties for early retirement, separation of disability system, "bend point" for accrual rates, and indexation. For the privately managed scheme the issues involve eligibility, contributions, retirement benefit options, retirement age, guarantees, and taxation. The activities required for the reform would include at least the issues regarding the impact on different kind of beneficiaries of the system, the financing issues involved in various options, required changes to other laws, restructuring of pension institutions, the role of inter-connected institutions, such as the bankinig and insurance industry, private pension funds, regulatory and supervisory agencies and other pre-requisites, such as a public information campaign. (ii) Develop Actuarial Capacity for Pension Reform. This sub-component would support the development of actuarial capacity to model/simulate financial costs of the transition to a Private Pension Pillar. The actuarial model for simulating the financial implications of alternate options for the transition to a private funded pension system under particular demographic and economic scenarios would need to be developed and tested. The Unit would also be trained further in actuarial methods, probability and statistics and regression techniques required for actuarial modeling. In addition, the Actuarial Unit would receive training in program based modeling techniques that would enhance the quality and flexibility of actuarial modeling and reduce computational errors. (iii) Develop a financing plan for the transition. This sub-component would support the development of financing options for the transition to a funded system, including, but not limited to taxation options, borrowing, or Government bond finance of the transition. This would involve, inter alia, a full assessment of the financial and insurance industry, an evaluation of the potential for Government debt finance of the pension reform process, and amount of pension fund surplus that could potentially be .received under alternate scenarios of economic growth. (iv) Design a Public Information Campaign Mobilizing public support for pension reform would be an essential part of the reform strategy. This sub-component would support the designing, testing and implementing of a public information campaign, with stakeholder involvement as needed, to garner public inputs and support for the pension reform process. T he objective of the public information campaign would be to address public concerns: how particular groups would be affected, howi reforms would be phased in, etc.; explain the overall benefits of the reform process, and the overall need, objectives and implications of the pension reform program. Project Component 2 - US$O.54million (total cost of component) Legislative Framework. This component would support the revision of the pension law and develop legislation for private funded pension system to underpin the pension reform program. These laws would be developed in parallel to ensure their internal consistency as well as consistency with other laws. The Government would also have to develop consensus among stakeholders to pass the legislation through parliament. Specifically this component would support (i) the reform of the public pension regulation; (ii) development of the law for private funded pension system; and (iii) develop support for this legislation. i) Reform the legislation of the public pension system. This sub-component would support the reform of public pension legislation in accordance with the overall pension reform program. The public pension law would have to be revised to incorporate measures to ensure the long term financial solvency of the pension fund (specified in the SSAC documents) such as more restrictive eligibility for retirement, disability and survivor pensions, increases in retirement age, changes in the benefit formula, and less costly long run indexation measures. Changes in the financing of public pensions and tax treatment of pensions would also have to be addressed. Potential conflicts with other laws and with reforms of the public pension legislation would have to be resolved. The legislative reform of the public pension system would have to be consistent with the private pension program proposed by the Government. ii) Develop the liaw for private pensions. This sub-component would support the development of the ilaw for private pensions including the resolution of potential conflicts with other laws. The law would outline the goals of the pension reform program and specify, inter alia, the eligibility, benefit structure, switching options, taxation, asset management, financing provisions, guarantees, and the contribution rates for the private pension pillar. iii) Develop Support for Passage of Legislation. This subcomponent would build capacity within the Government to implement the public information campaign (prepared under Component 1, Subcomponent (iv)) in order to build concensus, through participatory approaches, on the pension reforn program. In addition to the executive and legislative branches, it would be necessary to collaborate and inform political parties, representatives of business, labor, pensioners, lawyers and insurance companies during the development, enaction, and implementation of the pension reform process. Project Component 3 - USSO.20million (total cost of component) Project Management. The overall coordination of project activities and general loan administration would be the responsibility of a Project Coordination Unit (PCU) under the responsibility of the Ministry of Labor and Social Policy. The Ministry would appoilt a Project Director who would be the main counterpart for purposes of this credit and would report directly to the Minister. The project would be administered by a project coordinator who would report directly to the Project Director and would be responsible for undertaking procurement, preparing applications for disbursement, maintaining project accounts, and arranging for their timely audit, and monitoring overall credit implemenitationi. If necessary short term staff could be appointed to assist as and wheni requaired. The project coordinator would prepare Quarterly and Annual Progress Reports and the Project Mid-Term Review Report (scheduled for August, 1999). On the basis of the ilformation from the various agencies involved in the implementation of this credit, the project coordinator would prepare the Borrower's contribution to the Project Completion Report within six monthls of the closing date. Annex 3 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Estimated Project Costs Project Component Local Foreign Total -----------------------US $ million-------------------- Pension Reform Design 0.16 0.50 0.66 Legislative Framework 0.19 0.35 0.54 Project Managemenit 0.14 0.06 0.20 Total Project Cost 0.49 0.91 1.40 Annex 4 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Procurement and Disbursement Arrangements A. Procurement 1. Procuirement methods (see Table A) The procurement of goods and services of IDA financed activities would be procured in accordance with IDA procurement guidelines. Those project activities not financed by the IDA would be procured in accordance with the regulations of the financing entity, it is expected that counterpart staff time, PCU director salary, and PCU operating costs, financed by the Government, estimated to cost about US$ 390,000 would be procured using this method. The Government would also finance taxes on the procurement of goods estimated to cost US$ 10,000. Foreign technical assistance would be exempt from all local taxes. A detailed procurement schedule for these activities is presented in Table C. (a) Procurement of Goods (USS 60,000): Goods would be procured in accordance with the Bank Guidelines: Procurement under IBRD Loans and IDA Credits, dated January, 1995 and Revised January and August, 1996 and September, 1997. Since this is a technical assistance credit only a small amount of equipment would be procured, the following method is proposed: (i) National Shopping: these procedures could be used for contracts upto US$ 50,000 equivalent for an aggregate total of US$ 60,000, for the purchase of computers, office equipment, supplies and materials. Prudent National Shopping would be followed, by comparing price quotations obtained from at least three independent local suppliers, in accordance with procedures acceptable to IDA. (b) Procurement of Consultant Services (US$ 950,000): The technical assistance requirements of the Project include consulting services, training of trainers, in-country training for pensions sector staff, and a project audit. All of these packages will be financed by IDA and will be procured in accordance with the guidelines: Selection and Employnment of Consultants by World Bank Borrowers, dated January. 1997 and Revised September, 1997. (i) Procurement of Technical Assistance: There are twelve short-term specialized, services technical assistance packages to be procured under the project for a total estimated cost of US$ 900,000. These packages will iinclude management of related training as well. Either firms or individuals could be contracted, however, since there would be a need for short-term highly specialized services we expect most to be awarded to individual consultants for this assignment. Highly specialized individual consultants would be selected on a competitive basis based on their qualifications. Individuals will be hired as per provisions in Section V of the guidelines. All consulting services will be procured in keeping with the terms of reference as agreed by IDA and the Government. The Project Director would coordinate the activities of the individual consultants. The Project Director would review and comment on consultant reports, based on these reports the PD would draft related sections of the Quarterly and Annual Progress Reports for submission to the Government and IDA. Table Al shows the procurement packages for technical assistance. (ii) Project Audit: There would be one package with a phased delivery schedule to be procured uLnder the project for a total estimated cost of US$ 50,000. Least-Cost Selection method would be used, per IDA's guidelines. Terms of Reference and Winning Proposal of the Audit Firm would be reviewed by IDA. Audit reports would be submitted to IDA no later than six months of the end of the Government's fiscal year, that is by June 30 of each subsequent calendar year. It is expected that this project would be audited three times during the course of implemenitationi. 2. Prior review threshtolds (Table B) IDA's standard prior review thresholds would be used, for Goods US$50,000 and for Services US$ 100,000 for firms and US$ 50,000 for individuals. However, since this would be anew PCU and the capacity is unknown all documents, including terms of reference, related to the procurement of goods and services would be subject to IDA prior review. Table A: Project Costs by Procurement Arrangements (in US$) Expenditre Categry1 Prcre tMehd oa Cost OtherNAB, 1 . Goods 60,0001 60,000 (50,000) (50,000) 2. Services 950,0002 330,0003 1,280,000 (950,000) (950,000) 3. Operating Costs 60,0004 60,000 Total 1,010,000 390,000 1,400,000 (IDA) (1,000,000) -(1,000,000) Figures in parenthesis are the amounts to be financed by the IDA credit N.B.F. - Nonr-Bank Financed IDA - International Development Association 'National Shopping would be used to p:rocure computers, office equipment, supplies and materials for the use of the PCU. 2 Selection based on Consultant's Qualifications (CQ) would be used to procure short-termn highly specialized consulting services (US$ 390,00); Individual consultants would be contracted on a competitive basis (US$ 5 10,000); and Least Cost Selection (LCS) would be used to procure project auditors (US$ 50,000) in accordance with Bank Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January, 1997 and Revised September, 1997. 3NBF includes counterpart staff time to be financed by the Government. I NBF includes PCU operation and maintenance costs to be financed by the Government. Table Al: Consultant Selection Arrangements (in US$ equivalent) Private Pension Reform Design 100,000 100,000 Specialists Pension Modelling Specialists 100,000 - - 100,000 Pension Fund Management - 75,000 - 75,000 Specialists Actuarial Specialists - 75,000 - 75,000 Financial Specialists 90,000 - - 100,000 Economists - 75,000 - 75,000 Public Relations Specialists - 75,000 - 75,000 Pension Promotion Campaign - 75,000 - 75,000 Design Specialists Computer and Graphic Design - 50,000 - 50,000 Specialists Legal and Regulatory Analysis 100,000 - - 100,000 Specialists (Public Pension) Legal and Regulatory Analysis - 70,000 - 70,000 Specialists (Private Pensions) Project Auditors 50,000 - - 50,000 Counterpart Staff Time - - 330,000 330,000 Project Coordinator (MLSP) - - 15,000 - 15,000 Total 50,000 390,000 510,000 330,000 1,280,000 (IDA) (50,000) (390,000) (510,000) - (950,000) Note: QCBS = Quality- and Cost-Based Selection QBS = Quality-based Selection SFB = Selection under a Fixed Budget LCS = Least-Cost Selection CQ = Selection Based on Consultants' Qualifications Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial Practices, etc. N.B.F. = Not Bank-financed. Figures in parenthesis are the amounts to be financed by the IDA credit Table B: Thresholds for Procurement Methods and Prior Review -:t 3 .- .= c:Vai. ....Con.trac valu P Contracts to i-te;- - (Thehod MehdPiorRve ,,sti~aed i-a Valu e S jec to o Us$v Us$ 1. Goods 60,000 NS $60,000 (50,000) 2. Services <100,000 CQ 100,000 ($390,000) 50,000 LCS $50,000 <100,000 Individual > 50,000 ($510,000) Total value of contracts subject to prior review: 1,010,000 Table C. Procurement schedule I.Goods 60,000 NS 6/16/98 10/9/98 10/30/98 11/30/98 1/5/99 2. Services Technical Assistance --Package 1 390,000 CQ 6/16/98 10/9/98 - 11/15/98-6/30/99 3/28/99-3/30/00 --Package 22 510,000 Individuals 6/16/98 NA - -do- -do- Counterpart StaffTime 330,000 NIIF - - - Audits' 50,000 LCS 6/16//98 10/9/98 12/4/98 2/5/99 6/30/01 3. Operating Costs 60,000 NBF - - - - NS = National Shopping GPN = General Procurement Notice CQ = Consultant Qualification NBF = Non-Bank Financed LCS = Least Cost Selection I Selection based on Consultant's Qualifications (CQ) would be used to procure short-term highly specialized consulting services (US$ 390,000) in accordance with Bank Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January, 1997 and Revised September, 1997. 2 Individual consultants would be contracted on a competitive basis (US$ 510,000) all packages would be for short-term specialized services and would be procured in accordance with Banik Guidelines: Selection and Employment of Consultants by World Bank Borrowers, January, 1997 and Revised September, 1997. 3 Least Cost Selection (LCS) would be used to procure project auditors (US$ 50,000) in accordance with Bank Guidelines: Selection and Employment of Consultants by World Banik Borrowers, January, 1997 and Revised September, 1997. B. Disbursement The proceeds of the credit would be disbursed in accordance with the guidelines in the "Disbursement Handbook". The credit would be disbursed over a period of two and a half years. The project completion date would be September 30, 2000 with a credit closing date of March 31, 2001. The disbursement categories and amounts and percentages to be financed under each category are presented in Table D. Table E presents the Annual ancl Cumulative Disbursement estimates. Table D: Allocation of Credit Proceeds 1. Goods 45,000 100% of foreign expenditures and 100% of local expenditures (ex factory cost) and 85% of local expenditures for other items procured locally. 2. Consultant Services and Training 855,000 100% 3. Unallocated1 100,000 Total 1,000,000 The following Disbursement methods could be used: 1. Use of statements of expenses (SOEs): SOE procedures could be used for (i) for goods costing less than US$ 50,000 equivalent; (ii) for services of consulting firms costing less than $100,000; and (iii) for services of individual consultants costing less than $50,000; and (iv) training, under such terms and conditions as the Association shall specify by notice to the Borrower. 2. Special account: To facilitate timely project implementation, the Borrower would establish, maintain and operate, under conditions acceptable to the IDA, a Special Account in US dollars in a commercial bank acceptable to IDA or the Central Bank. The selection process and criteria for selection of the bank would follow IDA standard selection procedures. The authorized allocation is US$100,000 which may be withdrawn from the Credit Account by submitting the relevant Application of Withdrawal. Replenishment applications should be submitted at least every three months, and must include reconciled bank statements as well as other appropriate supporting documents. 3. Direct Payment: This method may be used to facilitate payments to international consultants. Direct deposits to foreign Bank accounts can be requested by submitting the appropriate withdrawal application supported by a contract copy and original invoices. we expect that the majority of unallocated funds would be used to finance consulting services. Table E. Disbursement Schedule FY99 Sept. 0.00 0.00 Dec. 0.06 0.06 March 0.20 0.26 June 0.44 0.70 FY00 Sept. 0.10 0.80 Dec. 0.10 0.90 March 0.05 0.95 June 0.05 1.00 Annex 5 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Project Processing Budget and Schedule A. Project Budget (US$000) Planned Actual US$20,000 B. Project Schedule Planned Actual Time taken to prepare the project (months) one month First IDA mission (identification) 4/23/1998 4/23/1998 Appraisal mission departure 4/23/1998 4/23/1998 Negotiations 4/30/1998 5/13/1998 Planned Date of Effectiveness 10/09/1998 Prepared by: Ministry of Labor and Social Policy Preparatio:n assistance: None IDA staff who worked on the project included: Name Specialty Michal Rutkowski Sector Leader Mansoora Rashid Economist (Team Leader) Rajna Cemerska Social Sectors Project Officer Leonardo M. Concepcion Procurement Accredited Staff Judith De Costa Budget Officer Gregory Kisunko Consultant Magdalena Kusemileva Portfolio Management Secretary Alessandra Iorio Legal Specialist Nicole LaBorde Team Assistant Mona Malhotra Operations Analyst Rohit Mehta Disbursement Officer Samuel Otoo Principal Economist Hermann Von Gersdorff Senior Economist Annex 6 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Documents in the Project File* A. Project Implementation Plan N/A B. IDA Staff Assessments N/A C. Other SSAC Report of the President (ROP) *Including electronic files. Annex 7 PENSION REFORM TECHNICAL ASSISTANCE PROJECT Status of Bank Group Operations in Macedonia, Former Yugoslav Republic of IBRD Loans and IDA Credits in the Operations Portfolio Difference Between expected Original Amount in US$ Millions and actual Loan or Fiscal disbursements a/ Project ID Credit Year Borrower Purpose No. IBRD IDA Cancellations Undisbursed Orig Frm Rev'd Number of Closed Loans/credits: 4 Active Loans MK-PE-34609 IBRD42400 1998 GOVT. OF MACEDONIA PSD II 25.00 0.00 0.00 23.74 -1.20 0.00 MK-PE-38391 IDA29820 1998 FORMER YUGOSLAV REPUBLIC EDUCATION REHAB. 0.00 5.00 0.00 3.87 .24 0.00 MK-PE-38399 IBRD42410 1998 GOVERNMENT OF FYRM IRRIGATION REHAB. 7.50 0.00 0.00 7.54 .19 0.00 MK-PE-38399 IDA30010 1998 GOVERNMENT OF FYRM IRRIGATION REHAB. 0.00 5.00 0.00 4.99 .19 0.00 MK-PE-42399 IBRD42840 1998 ESM POWER 35.00 0.00 0.00 34.36 0.00 0.00 MK-PE-38393 IBRD41530 1997 FORMER YUGOSLAV REPUBLIC SAL I 30.00 0.00 0.00 12.40 10.27 0.00 MK-PE-38393 IDA29490 1997 FORMER YUGOSLAV REPUBLIC SAL I 0.00 30.00 0.00 5.53 10.27 0.00 MK-PE-10001 IDA28630 1996 FYR MACEDONIA PRIV. FARMER SUPPORT 0.00 7.90 0.00 6.20 4.76 0.00 MK-PE-36089 IDA28890 1996 GOVT. OF FYRM HEALTH SECTOR TRANSI 0.00 16.90 0.00 14.84 12.58 0.00 MK-PE-43447 IBRD40150 1996 FYR MACEDONIA PRIVATE SECTOR DVPMT 12.00 0.00 0.00 2.08 -2.92 0.00 MK-PE-38092 IDA27220 1995 GOVERNMENT OF FYR MACEDON SOCIAL REFORM 0.00 14.00 0.00 3.05 4.49 0.00 MK-PE-8407 IBRD38680 1995 FYRMACEDONIA TRANSIT FACILITATION 24.00 0.00 0.00 1.27 -1.88 0,00 Total 133.50 78.80 0.00 119.87 36.99 0.00 Active Loans Closed Loans Total Total Disbursed (IBRD and IDA): 80.51 165.01 245.52 of which has been repaid: 0.00 3.52 3.52 Total now held by IBRD and IDA: 212.30 165.11 377.41 Amount sold : 0.00 0.00 0.00 Of which repaid : 0.00 0.00 0.00 Total Undisbursed : 119.87 0.00 119.87 a. Intended disbursements to date minus actual disbursements to date as projected at appraisal. b. Rating of 1-4: see OD 13.05. Annex D2. Preparation of Implementation Summary (Form 590). Following the FY94 Annual Review of Portfolio performance (ARPP), a letter based system will be used (HS = highly Satisfactory, S = satisfactory, U = unsatisfactory, HU = highly unsatisfactory): see proposed Improvements in Project and Portfolio Performance Rating Methodology (SecM94-901), August 23, 1994. Note Disbursement data is updated at the end of the first week of the month. Macedonia, Former Yugoslav Republic of STATEMENT OF IFC's Committed and Disbursed Portfolio As of 30-Apr-98 (In US Dollar Millions) Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic !997 Nikol-Fert 380 0.00 0.00 0.00 2.28 0.00 0.00 0.00 1997 SEF Masinomont .59 0.00 0.00 0.00 .59 0.00 0.00 0.00 1997 SEF Teteks 1.48 0.00 0.00 0.00 1.48 0.00 0.00 0.00 Total Portfolio: 5.87 0.00 0.00 0.00 435 0.00 0.00 0.00 Approvals Pending Commitment Loan Equity quasi Partic 1997 MAKEDONIJA 5.00 0.00 0.00 0.00 1998 MT 25.00 0.00 0.00 25.00 1997 SEF MASINOMONT .20 0.00 0.00 0.00 1998 STOPANSKA BANKA 11.09 5.24 0.00 0.00 Total Pending Commitment: 41.29 5.24 0.00 25.00 Annex 8 Page 1 of 2 FYR of Macedonia at a glance Europe & Lower- POVERTY and SOCIAI. Macedonia, Central middle- FYR Asia Income Population mid-1996 (__ilions) 2.0 479 1,125 GNP per capita I996(UJS$) 920 2,180 1.750 < GNP 1998 (billions US$) 1.9 1,043 1,967 . Average annual growth, 1990-96 Popularion (96) 0.9 0.3 1.4 Labor force (I6) 1.3 0.5 1.8 Most recent estimate (latest year-available since 1989) Poverty: headcount index (96 of population) Urban population (96 of total population) 6 5 5 Life expectancy at birth (years) 73 68 67 Infant mortality (per 1,000 live births) 23 26 41 Child malnutrition (96 of children under 5) Access to safe water ( ulaer) 78 popula Illiteracyf(9 of population age 15+) * ~ ~ Gross pmrmary enrollment (9 of school-age population) 87 97 104 L 1 Male 88 97 105 Female 87 97 101 KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1975 1985 1996 1997 GDP (billions US$) 9 33 Gross domestic investment/OP .19.2 19.9 Exports of goods &Non-factor services/GP .. 33.0 39.9 Gross domestic savingslGOP73 40 Gross national savings/GOP /a 199 1s9 Current account balance/GDP -7.3 -8.2 Interest payments/GP. 1. Total debt/GOP297 35 Total debt service/exports .. .. 1.4 7.3 Present value of debt/GODP349 99 Present value of debt/exports .. .. 100.9 93.9 1975-85 1986-96 1996 1997 1997.05 (average annual growth) GOP09 . 0 GNP per cepita .. -87 0.6 1.4 3.8 y * Exports of goods and Non-factor services .. -12.3 6.0 5.6 STRUCTURE of the ECONOMY 1975 1985 1996 1997 prlmnr e (96 of GDP) Agriculture . .. 13.1 13.7 . _ Industfy so f 30.8 304. Manufacturing Services . .. 56.1 55.9 Private consumption . .. 79.4 83.1 ~ General govemment conisumption . .. 13.4 12.9 Imports of goods and non-factor services . .. 45.0 55.8 1975456 1986-96 1996 1997 ... (average annual growtl I Agriculture /b 39 -. Industry 43 O Manufacturing . Services -. . Private consumption . . 1.3 4.7 General govemment conisumption 59 32 Gross domestic investment . . -4. 2.9 Imports of goods and non-factor services . .. 3.2 1. Gross national product .. -7.9 0.9 1.4 Note: 1997 data are preliminary estimates. Figures in italics are for years other than those specified. *The diamonds show four key indicators in the country (in bold) compared vwith its income-group average. If data are missing, the diamond will be incomplete. Annex 8 Page 2 of 2 FYR of Macedonia PRICES and GOVERNMENT FINANCE (omeStic phn es 1975 1985 1996 1997 . (% change) . Consumerprces 2.5 1.5 Implicit GDP deflator1. 40 Govemment finance - 'i ? (% of GOP) Current revenue .. .. 40.6 38.6 Current budget balance .. .. 2.0 1.0 Overall surplus/deficit .. .. -0.4 -0.5 TRADE 1975 1985 1996 1997 (millions USS) Total exports (fob) .. .. 1,147 1,201 . 8, Commodity 1 188 178 . Commodity 2 . .. 419 480 Manufactures . .. 540 542 Total imports (cif) . 1,464 1,589 Food . .. 175 154 Fuel an%d energy . .. 131 178 Capital goods 218 183 Export price index (1996'100) .. .. 100 97 v lmport prce index (1996=100) .. .. 100 95 i > / e Terms of trade (1996=100) .. .. 100 102 f , BALANCE of PAYMENTS 1975 1985 1996 1997 Exports of goods and non-factor services .. .. 1,301 1,329 Imports of goods and non-factor services .. .. 1,773 1,861 Resource balance .. .. -472 -532 - 91 Net income .. .. -30 -33 Net current transfers .. .. 213 290 Current account balance, | before official capital transfers .. .. -288 -275 r ' , f ;;''t " -- Financing items (net) .. .. 237 305 ,-'-' Changes in net reserves .. .. 51 -31 -, Memo: Reserves including gold (mill. US$) .. .. 267 280 Conversion rate (local/US$) 39.9 49.8 EXTERNAL DEBT and RESOURCE FLOWS 1975 1955 1996 1997 777= (millions US$) Total MLT debt outstanding and disbursed /c .. .. 1,172 1,118 -- IBRD78 4 IDA12 14 Total debt service 155 109 IBRD . .. 21 15 IDA 1 Composition of net resource flows Official grants 52 8 Official creditors 8 7 Private creditors >. s Foreign direct investment 12 1 Portfolio equity 2 World Bank program Commitments 37 60 Disbursements67 7 Princpal repayments '' *- 17 10 . t Net flows . .. 49 5a Interest payments .. .. 8 6 Net transfers .. .. 42 51 Development Economics 4,1798 /a Excludes official grants; lb Estimated real growtth rated at factor cost: /c Excludes short-term debt. IBRD 25501 R fED. REP. OF YUGOSLAVIA e '\ '/ i' / X t ; : g. 00 r J ~~~~~~~~~--, \ / ~~~FORMER YUGOSLAV REPUBLIC (StRBIA/MONTENEGRO) , b! W O|fip :: \< 2 - <\ / \ , Gobrka r x - : Krvo * ~~~~~~~~~~~~~~~~~~<6 KyW-bdil < \ :|g:V? t;g :;;i;;g ()t:y;gg4 ~~~~~~~~~~~P.II,k. ' xAevc - B UL GA RI A 8 f t ;j 0'; ^-bi / VninicoPhcn adooF ( (umcnov-? ' ovki M° -0j; ajor cities i :, ; < , ; >X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~_ Selected cities <'' §i ( M~ ~~uvvt~ \.SK:OPJE > 0dvs0 i Natotnale n Caint mter y X s | |)) _, ff A<- ^ < -) e V \ * (020 ' . -~~~~~~~0,,C Rivers / W 09 W * . < va 0 i -6, , , . . .~~~~~~~~P. . K i ) A V.1. Svecndr roa <|:' C)d :: 's. AUSR A _ *_ V, < 4 7 i B p ,. . + i C C / _-d<04;; 0 0 L 0 iJ_> CROAT;A ~~~~~~~~~~~~~~~~~~~~~'r X ROMANIAed raitoar 2>:;10 0r p ,/:;\S7;:500 .t0;f30.,Eh.\|\W>i ,. fJ K ia Ii )f; a Othe'r r% ae-<1EteoNA 5ailroad kox,¢ S \ 0 lAkE f~~~~~~~~~~~i, Aiealia2TkOoi Srp/ortsf)ELAI k \4 t s tsl tt'Ip/ '>PTeslnk g - iL+U\ > R A L B A N I A (Kon e * b#kk~~~~~~~~~~~~~~~~~~~~~~~~~~.d'/00011- )'\i,AI Y;j ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4,! Spo elevateikons in ,,m,e1&;ter