The World Bank Report No: ISR3184 Implementation Status & Results Macedonia, former Yugoslav Republic of Public Disclosure Copy Municipal Services Improvement (P096481) Operation Name: Municipal Services Improvement (P096481) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Last Modified Date: 22-Apr-2011 Country: Macedonia, former Yugoslav Republic of Approval FY: 2009 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 26-Mar-2009 Original Closing Date 30-Nov-2014 Planned Mid Term Review Date 15-Oct-2011 Last Archived ISR Date 11-Dec-2010 Effectiveness Date 04-Aug-2009 Revised Closing Date 30-Nov-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve transparency, financial sustainability and delivery of targeted municipal services in the participating municipalities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component A: Municipal Investments 20.00 Component B: Capacity Building and Institutional Reform 1.00 Component C: Performance-Based Investment Grants 3.00 Component D: Project Management, Monitoring and Evaluation 1.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Overall, project implementation has progressed well and is yielding first results in participating municipalities. First sub-projects under MSIP have been finalized in Kocani and Bogdanci. Good implementation progress also reflects in the disbursement rate which has started picking up from the low level since the last implementation support mission in September 2010. Five more sub-projects were submitted to the Bank for review and have received no-objection. From the group of 20 municipalities that have received a positive opinion from the Public Debt Department in the Ministry of Finance (MoF) to become eligible for borrowing, nine municipalities have signed Sub-Loan Agreements (SLAs) with MoF Page 1 of 8 The World Bank Report No: ISR3184 by now. Today, 20 month after Project effectiveness, the total sub-project volume allocated to municipalities with signed SLAs has reached close to USD12 million, equivalent to 60 percent of the total investment funds available under Component A of the Project. Demand from municipalities for funding under the Project remains high and the combined demand Public Disclosure Copy from municipalities with borrowing approval already exceeds available investment funds under Component A. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value X percentage of participating municipalities/CSEs involved in 0% 100% 100% performance measurements and benchmarking as per IBNET Date Date Date practices. 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text Sub-loans signed with nine municipalities, of which all participate in IBNet benchmarking Indicator Baseline Current End Target Indicator Name Value Value Value Publication of benchmarks and project progress information on No information on benchmarks 1 website regularly updated Website updated quarterly municipal websites and PMU project portal. collected/published Date Date Date 22-Apr-2011 30-Nov-2014 Type Unit of Measure 26-Mar-2009 Comment Comment Custom Indicator Text Comment Municipality of Kocani publishes benchmarks and project progress information Indicator Baseline Current End Target Indicator Name Value Value Value Public Disclosure Copy Number of municipalities that qualified for performance grants 1-4 participating municipalities 0 4-5 participating municipalities Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text First sub-projects are under completion or were completed recently. No performance grant applications formally submitted to the PMUyet. Page 2 of 8 The World Bank Report No: ISR3184 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of municipalities that have achieved some of the reform criteria 1-4 participating municipalities 2 3-6 participating municipalities but do not qualify for a performance grant. Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text First sub-projects are under completion or were completed recently. No performance grant applications formally submitted to the PMUyet. Indicator Baseline Current End Target Indicator Name Value Value Value X% of the participating municipalities achieving increased revenue 0% 0% 25% earnings, and/or cost savings in delivery of services supported by the Date Date Date project. 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text Implementation of sub-projects started recently Indicator Baseline Current End Target Indicator Name Value Value Value X% of participating municipalities achieving targeted improvements in 0% 0% 40% delivery of select services Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text First sub-projects are under Public Disclosure Copy completion or were completed recently. First results from sub- project monitoring expected during next implementation support mission. Page 3 of 8 The World Bank Report No: ISR3184 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Piped household water connections that are benefiting from 0.00 2900.00 2900.00 rehabilitation works undertaken by the project Date Date Date 14-May-2010 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Core Indicator Number 11,615 inhabitants in the Target value to be updated once municipality of Kocani benefit from additional water rehabilitation sub- 24-hour regular water supply after projects are approved completion of the first sub-project Indicator Baseline Current End Target Indicator Name Value Value Value Number of people in urban areas provided with access to regular solid 0.00 0.00 240000.00 waste collection under the project Date Date Date 14-May-2010 01-Jun-2010 30-Nov-2014 Type Unit of Measure Comment Comment Comment Core Indicator Number Waste bins will be distributed 60,000 households in the City of shortly after delivery scheduled Skopje will benefit from better before June 2011 and results will waste collection services due be recorded during the next distribution of waste bins and implementation support mission. purchase of waste collection vehicles Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Number of applications for sub-loans 3 10 10 Public Disclosure Copy Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text 10 municipalities have formally submitted requests to borrow and 9 have signed SLAs; in total, 20 municipalities have received a positive opinion from MoF. Page 4 of 8 The World Bank Report No: ISR3184 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value X% of approved sub-projects successfully implemented. 0% 10% 80% Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text 3 out of 9 approved sub-projects are under implementation; one is completed, and two more will be completed soon Indicator Baseline Current End Target Indicator Name Value Value Value X% of sub-projects proposals approved for funding. 0% 40% 80% Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text 9 sub-loans signed out of 20 formal borrowing requests to the MoF Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of CSEs participating in IBNET benchmarking exercise and 0% 100% 100% training. Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text All CSEs in municipalities that have signed sub-loans participates Public Disclosure Copy in IBNet. Page 5 of 8 The World Bank Report No: ISR3184 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Continued and sustained dialogue on institutional reform as evidenced No strategy Sub-sovereign borrowing policy Final report submitted to Ministry by submission of studies, such as a Strategy for Financial workshop conducted for review Date Intermediation for Municipal Investments 26-Mar-2009 Date Date Type Unit of Measure Comment 22-Apr-2011 30-Nov-2014 Custom Indicator Text Comment Comment A sub-sovereign borrowing policy workshop was conducted with the MoF and an international comparative analysis is ongoing under thePublic Debt Law Review supported by the Project. First output reports are expected by June 2011. Indicator Baseline Current End Target Indicator Name Value Value Value Completion of TA contracts to clients# satisfaction No TA Available One contract implemented to client Satisfactory Date satisfaction Date 26-Mar-2009 Date 30-Nov-2014 Type Unit of Measure Comment 22-Apr-2011 Comment Custom Indicator Text Comment Feedback for the sub-sovereign borrowing policy workshop was highly satisfactory. Indicator Baseline Current End Target Indicator Name Value Value Value Public Disclosure Copy Number of municipal applications to participate in the Performance 0 0 6 Grant incentive Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text First sub-projects are under completion or were completed recently. No performance grant applications formally submitted to the PMUyet. Page 6 of 8 The World Bank Report No: ISR3184 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Number of municipalities receiving a 20% performance grant for 1-4 municipalities Implementation of sub-projects 4-5 municipalities achieving at least 4 of the 7 listed performance criteria. started recently Date Date 26-Mar-2009 Date 30-Nov-2014 Type Unit of Measure Comment 22-Apr-2011 Comment Custom Indicator Text Comment Indicator Baseline Current End Target Indicator Name Value Value Value Number of municipalities achieving 1-3 of the 7 listed performance 1-4 municipalities 0 3-6 municipalities criteria Date Date Date 26-Mar-2009 22-Apr-2011 30-Nov-2014 Type Unit of Measure Comment Comment Comment Custom Indicator Text First sub-projects are under completion or were completed recently. No performance grant applications formally submitted to the PMUyet. Data on Financial Performance (as of 15-Mar-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P096481 IBRD-76990 Effective 26-Mar-2009 29-Jun-2009 04-Aug-2009 30-Nov-2014 Disbursements (in Millions) Public Disclosure Copy Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096481 IBRD-76990 Effective USD 25.00 25.00 0.00 2.53 22.58 10.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR3184 Public Disclosure Copy Key Decisions Regarding Implementation No key decisions were made. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 8 of 8