ICRR 11643
                                                                                             Report Number : ICRR11643
                   ICR Review
                   Operations Evaluation Department




1. Project Data:                                             Date Posted : 09/23/2003
            PROJ ID : P049735                                                    Appraisal              Actual
       Project Name : Privatization Support                  Project Costs 16.0                  0
                       Project                                      US$M )
                                                                   (US$M)
             Country : Yemen                          Loan/         US$M ) 10.9
                                                      Loan /Credit (US$M)                        0
           Sector (s): Board: PSD - Central                   Cofinancing
                       government administration                    US$M )
                                                                   (US$M)
                       (100%)
        L/C Number : C3298; CQ129
                                                          Board Approval                         0
                                                                     FY )
                                                                    (FY)
Partners involved :                                         Closing Date 12/31/2003              04/30/2001

Prepared by :            Reviewed by :                Group Manager :       Group :
Elliott Hurwitz           Fareed M. A. Hassan         Alain A. Barbu         OEDST
2. Project Objectives and Components
 a. Objectives
The project development objectives were : [implement] (i) Effective and transparent management of the
Government's Privatization Program (1999-2002) including the Project; and (ii) Completed privatizations of public
enterprises and assets.
 b. Components
 1. Institutional support for Program and Project Management : US$3.7 million; 2. Transaction support for large
enterprise privatization, US$7.1 million; 3. Transaction support for small and medium enterprise privatization, US$ 3.8
million; 4. Pre-privatization strategy development for specified large enterprises, US$ 1.4 million.
 c. Comments on Project Cost, Financing and Dates
 The project was approved by the Board in November, 1999, but was never ratified by Parliament; it therefore never
became effective, and was canceled in April, 2001.
3. Achievement of Relevant Objectives:
The project was consistent with the CAS, had implementing institutions and a legal framework in place, and an
appropriate design. However, it never became effective, and there were no disbursements .
4. Significant Outcomes/Impacts:
None
5. Significant Shortcomings (including non-compliance with safeguard policies):
None.


6. Ratings :               ICR                    OED Review                Reason for Disagreement /Comments
              Outcome :    Not Rated              Not Rated
    Institutional Dev .:   Not Rated              Not Rated
        Sustainability :   Not Rated              Not Applicable
   Bank Performance :      Not Rated              Satisfactory              The Bank had involved stakeholders in
                                                                            project design, including political and
                                                                            labor groups. The passage of a new
                                                                            Privatization Law in 1999 which
                                                                            established high-level governmental
                                                                            institutions and rules to guide
                                                                            implementation of the program gave the
                                                                            impression of a positive environment for
                                                                            the privatization program. However,
                                                                            Parliamentary opposition to
                                                                            privatization--due to expected job
                                                                            losses--proved to be greater than
                                                                                   envisioned.
        Borrower Perf .: Not Rated                     Unsatisfactory              The Borrower failed to generate sufficient
                                                                                   support in Parliament to ratify the project .
        Quality of ICR :                               Satisfactory
NOTE ICR rating values flagged with ' * ' don't comply with OP/BP 13.55, but are listed for completeness.
NOTE:
7. Lessons of Broad Applicability:
In dealing with a politically sensitive subject such as privatization, during project preparation the Bank should cast as
wide a net as possible in consultation with stakeholders .
8. Assessment Recommended?                Yes     No
9. Comments on Quality of ICR:
The PCN is of satisfactory quality .