The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Second Municipal Services Improvement Project (P154464) EUROPE AND CENTRAL ASIA | North Macedonia | Urban, Resilience and Land Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 11 | ARCHIVED on 23-Nov-2020 | ISR44309 | Implementing Agencies: Project Management Unit, The Republic of North Macedonia Key Dates Key Project Dates Bank Approval Date: 11-Jan-2016 Effectiveness Date: 14-Jul-2016 Planned Mid Term Review Date: 15-Sep-2019 Actual Mid-Term Review Date: 16-Sep-2019 Original Closing Date: 31-Mar-2021 Revised Closing Date: 30-Sep-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective of MSIP2 Project (PDO) is to improve transparency, financial sustainability and inclusive delivery of targeted municipal services in the participating municipalities. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Municipal Investments Sub-loans:(Cost $20.76 M) Poverty/Social Inclusion Investment Grants:(Cost $5.53 M) Project Management, Monitoring and Evaluation, and Capacity Building:(Cost $1.68 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Moderate Implementation Status and Key Decisions The loan for the Second Municipal Services Improvement Project (MSIP2) in the amount of EUR25 million was approved by the World Bank Board of Executive Directors on January 11, 2016; the loan agreement was signed on January 14, 2016, and the Project was declared effective on July 14, 2016. The Project development objective is to improve transparency, financial sustainability, and inclusive delivery of municipal services across the country. The start of the MSIP2 implementation has been significantly affected by the political cycle in the country, including multiple delays in organizing elections in 2016, delays in forming the government after December 2016 elections, and local elections in 2017. To date, the project largely 11/23/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) overcome the delays that occurred during the first years of its implementation and demonstrates a positive dynamic in reaching its development objectives. It is also acknowledged, however, that the project implementation progress can be affected by lockdown measures introduced in response to the COVID-19 pandemic in the country, region, and worldwide. MSIP2 provides sub-loans to municipalities for infrastructure investments such as water supply, sewerage, solid waste management, local roads, energy efficiency improvements to municipal buildings, and other high priority municipal infrastructure investments with a clear impact on the welfare of citizens and efficiency of services. The Project also introduced a grant component to enhance service delivery and infrastructure for poorer and marginalized communities within municipalities throughout the country. The identification of these communities is done on the basis of "urban mapping" and urban audits launched in the project participating municipalities with the support of an independent consultant hired by the Project Management Unit. The urban mapping is aimed to determine the poorest settlements and communities in the municipality’s area and their priority investments which will be financed from the grants. All municipalities are eligible and were encouraged to participate in the MSIP2, including through outreach workshops organized in each of the country’s planning regions before 1st Call for Proposals and outreach activities preceding the 2nd and 3rd Calls for Proposals. The last (third) Call for Proposals was announced in mid-September 2020 and resulted in proposals received from twenty municipalities. As of the end of October 2020, the Ministry of Finance signed 25 sub-loan agreements with 24 municipalities (Tetovo municipality has two sub-loan agreements signed). Subprojects of 8 municipalities have already been completed. The contracts for subprojects of the remaining 16 municipalities have been signed and are under implementation, while the subproject in one municipality is at the final stage of the procurement process. To date, 21 municipalities out of 24 municipalities with signed sub-loan agreements have already prepared the “urban mapping”. Out of them, 13 municipalities have signed their grant agreements. One grant financed subproject has already been completed. Six grant financed subprojects is at the implementation stage, while the other six are at the procurement stage. The remaining seven municipalities submitted their technical documentation to the Project Management Unit (PMU). One of these municipalities is now introducing necessary corrections in line with the PMU recommendations, another one has already completed its project appraisal documents, while five municipalities are working on preparing project appraisal documentation for their grants financed subprojects. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Substantial Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other -- High High Overall Moderate Substantial Moderate Results PDO Indicators by Objectives / Outcomes 11/23/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Improve transparency of targeted municipal services in the participating municipalities IN00918407 ►Number of participating municipalities (i.e. the municipalities which signed sub-loan agreements) that regularly publish sub-project progress information on their official websites or elsewhere (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 24.00 24.00 29.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 Improve financial sustainability of targeted municipal services in the participating municipalities IN00918408 ►Percentage of completed subprojects that generated improved financial performance, including through increased revenue earnings or cost savings (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 33.00 90.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 First data to be reported after completion of first sub-loan financed subprojects that is expected in Comments: October-November 2019 Improve inclusive delivery of targeted municipal services in the participating municipalities IN00918409 ►Number of the completed sub-projects that focus on social inclusion (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 25.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 First social inclusion grant financed sub-project are expected to be completed by... Comments: IN00918410 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12,339.00 49,823.00 120,000.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 Number of beneficiaries will start to be reported after successful completion of first civil work contracts - Comments: expected in October-November 2019 IN00918411 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 48.00 49.00 50.00 11/23/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) IN00918412 Vulnerable/marginalized people with marginalized measured as the number of unemployed, social assistance receiving or in other ways vulnerable population that benefits from the project intervention (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.10 10.00 Intermediate Results Indicators by Components Municipal Investments Sub-loans IN00918413 ►Number of sub-loans signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 25.00 25.00 29.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 IN00918415 ►Number of jobs generated, measured as the number of employees of contractors and engineering companies that perform works under the sub-projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,019.00 1,529.00 1,800.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 Number of employees of contractors and engineering companies under ongoing contracts Comments: IN00918417 ►Number of visits to websites that publish sub-project progress information (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 261,000.00 342,521.00 500,000.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 31-Mar-2021 The value of indicators include number of visits to the websites and municipal facebook Comments: IN00918419 ►Piped household water connections that are benefiting from rehabilitation works undertaken by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 600.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 The indicator will start to demonstrate the progress after completion of the corresponding types of Comments: investment subprojects. IN00918421 11/23/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) ►Roads rehabilitated, Rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.30 13.80 30.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 IN00918422 ►Roads rehabilitated, Non-rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.02 7.02 20.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 Poverty/Social Inclusion Investment Grants IN00918414 ►Number poverty/social inclusion investment grants signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 13.00 25.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 IN00918416 ►Number of sub-projects, financed by sub-loans or grants, successfully completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 9.00 54.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 IN00918418 ►Number of participants in consultation activities during sub-projects preparation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,326.00 1,326.00 1,600.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 The PMU is monitoring data related to two CE indicators under MSIP2: “number of participants in consultation activities during sub-projects preparation” and “number of visits to websites/facebook pages that publish sub-project progress information”. Both of these indicators are demonstrating positive results with the number of visits to the websites/facebook pages exceeded 342,000 in October 2020 (this number was just 80,000 in 2019) and has good potential to reach the target of 500,000 by the end of the Project. Comments: The number of participants in consultation activities reached 1,326 in 2020. At the same time, it was noted that the number of women who took part in the consultation activities remains to be relatively small with relative participation of about 20%. In order to increase and encourage female participation, during the previous implementation support mission the Bank team and the PMU agreed that the municipal project managers who had been appointed by the local governments to act as a municipal counterpart for the PMU would liaison with the local government gender focal point and the PMU staff to get support to 11/23/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) increase the women participation during the project's implementation. During the previous mission, it was agreed that municipalities would appoint gender focal points and prepare action plans to increase women's engagement. While, with the start of the COVID-19 pandemic, these activities were neglected, PMU shall follow continue reaching out to the municipalities to ensure the development of these action plans. IN00918420 Number of participants in consultation activities during sub-projects preparation - female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 299.00 299.00 500.00 Date 31-Dec-2015 30-Apr-2020 30-Oct-2020 30-Sep-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154464 IBRD-85610 Effective USD 28.04 28.04 0.00 10.22 17.96 36% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154464 IBRD-85610 Effective 11-Jan-2016 14-Jan-2016 14-Jul-2016 31-Mar-2021 30-Sep-2022 Cumulative Disbursements 11/23/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 06-Aug-2020 Related Project(s) There are no related projects. 11/23/2020 Page 7 of 7