The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Republika Srpska Railways Restructuring Project (P161122) EUROPE AND CENTRAL ASIA | Bosnia and Herzegovina | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2018 | Seq No: 2 | ARCHIVED on 01-Apr-2019 | ISR35999 | Implementing Agencies: Bosnia and Herzegovina, Republika Srpska, Republika Srpska Railways Key Dates Key Project Dates Bank Approval Date: 07-Dec-2017 Effectiveness Date: 31-Aug-2018 Planned Mid Term Review Date: 30-Jun-2020 Actual Mid-Term Review Date: -- Original Closing Date: 31-Dec-2021 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Overall Development Objective of the Transport Sector Modernization Program (TSMP) is to improve transport connectivity of the country along priority transport links and to support improvements in transport operations and asset management practices. The Program is multi-phased with a First Phase including road sections in the Federation of Bosnia and Hezegovina, and the Second Phase including railways in the Republika Srpska. The Development Objective of the Second Phase of the TSMP is to improve the operational efficiency and financial sustainability of the railways in Republika Srpska. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Financial restructuring:(Cost $139.02 M) Workforce restructuring:(Cost $4.13 M) Organizational restructuring:(Cost $5.90 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions Financial Restructuring: Arrears have been paid in full to 1,800 workers. Another 719 active workers and 1,429 former employees have received direct and tax administration related arrears. Only a small number of former employees as well as interests and legal fees related to court procedures remain to be paid. Workforce Restructuring: Staff numbers reached 2,482 at the end of January 2019, 616 down from the project level and 384 away from the final target. 4/1/2019 Page 1 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Organizational restructuring: The procurement of consultancy services for "organizational accounting and asset management systems" is currently ongoing while the procurement of consultancy services for "business plans and public contracts" is to be initiated in March 2019. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Financial Restructuring IN00598308 ►ZRS Working Ratio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.70 1.50 1.40 1.00 Date 31-Dec-2016 31-Dec-2017 31-Dec-2018 31-Dec-2021 Workforce Restructuring IN00598307 ►ZRS labor productivity (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 146.00 145.00 152.00 215.00 4/1/2019 Page 2 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Date 01-May-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 Organizational Restructuring IN00598306 ►Public Service Obligations Contract for passenger services (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Implemented and fully Value No No No covering passenger operations deficit. Date 01-Mar-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 IN00598316 ►Multi-annual infrastructure contract (MAIC) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Contract implemented, fully covering Value None None None infrastructure investments Date 30-Apr-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 Intermediate Results Indicators by Components Financial restructuring IN00598312 ►Arrears related to employees benefits and social contributions (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 42,700,000.00 40,600,000.00 11,871,104.00 0.00 Date 01-May-2017 30-Apr-2018 31-Jan-2019 31-Dec-2021 Workforce restructuring IN00598313 ►Size of ZRS workforce (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,098.00 2,723.00 2,482.00 2,098.00 Date 01-May-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 IN00598314 ►Share of female employees of ZRS (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15.00 15.70 16.00 15.00 4/1/2019 Page 3 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Date 01-May-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 IN00598315 ►Percent of workers’ grievances resolved (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 01-May-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 Organizational restructuring IN00598309 ►Accounting separation for infrastructure and operations (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Accounting separation Value No No No implemented Date 01-May-2017 30-Apr-2018 31-Dec-2018 31-Dec-2021 IN00598310 ►5-year Business Plans (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Business Plans updated annually as Value No No No standard management/governan ce tool Date 01-May-2017 30-Apr-2018 30-Apr-2018 31-Dec-2021 IN00598311 ►Railways asset management system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Railways asset management system used as basis for Value No No No maintenance and capital investment plans Date 01-May-2017 30-Apr-2018 30-Apr-2018 31-Dec-2021 IN00598317 ►Number of customers’ complaints (percent change) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 -40.00 Date 01-May-2017 30-Apr-2018 30-Apr-2018 31-Dec-2021 IN00598318 Passenger customers complaints (percent change) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 4/1/2019 Page 4 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Value 0.00 0.00 0.00 -40.00 Date 01-May-2017 30-Apr-2018 30-Apr-2018 31-Dec-2021 IN00598319 Freight customers complaints (percent change) (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 -40.00 Date 01-May-2017 30-Apr-2018 30-Apr-2018 31-Dec-2021 Overall Comments IR The project includes complains mechanisms for passengers and freight users. Freight users complains system was in place prior to the project. In 2018, 26 complains were registered, comprising mainly questions related to the calculation of custom fees and time to load and unload trains. The passenger complain system was created for the purpose of the project in April 2018. To date, only six complains have been submitted, all related to different issues including ticketing office closed in early hours and a request to present ticket prices in the website. The PIMT will continue capturing complains for freight and passengers: ISR seq 3 will include progress for freight and from ISR seq 4, progress on freight and passengers complains will be included. Disbursement Linked Indicators IN00669356 ►DLI 1 DLR1.1(a): ŽRS restructuring plan has been approved by the RS Government (Yes/No, Intermediate Outcome, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- Yes Yes Date -- -- 21-Dec-2018 -- IN00669383 ►DLI 2 DLR 1.1(b): Arrears paid for 500 ŽRS workers (Number, Intermediate Outcome, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value 0.00 -- 500.00 500.00 Date -- -- 21-Dec-2018 -- IN00669698 ►DLI 3 DLR 1.2 Arrears paid for the remaining 2,598 ZRS workers, for a total of 3,098 (Number, Intermediate Outcome, 12,000,000.00, 50.00%) Baseline Actual (Previous) Actual (Current) July 2019 4/1/2019 Page 5 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Value 0.00 -- 1,800.00 2,598.00 Date -- -- 21-Dec-2018 -- IN00669663 ►DLI 4 DLR 1.3 More than 90% of ZRS' capital is owned by RS, as evidenced by registry certificate issued by the Banja Luka Stock (Yes/No, Process, 3,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669664 ►DLI 5 DLR 2.1 Retrenchement Plans have been implemented, or voluntary separation of retirement have taken place for 500 ZRS wokers (Number, Intermediate Outcome, 2,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) July 2019 Value 0.00 -- 500.00 500.00 Date -- -- 07-Feb-2019 -- IN00669665 ►DLI 6 DLR 2.2 Retrenchment Plans have been implemented, or voluntary separation or retirement have taken place for an additional 200 ZRS workers, for a total of 700 ZRS workers (Number, Outcome, 5,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) July 2019 Value 0.00 -- 116.00 200.00 Date -- -- 07-Feb-2019 -- IN00669699 ►DLI 7 DLR 2.3 Retrenchment Plan have been implemented, or voluntary separation of retirement have taken place for the remaining 300 ZRS worker, for a total of 1000 workers (Number, Outcome, 6,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value 0.00 -- 0.00 0.00 Date -- -- 07-Feb-2019 -- IN00669726 ►DLI 8 DLR 3.1(a) Consultants selected for ZRS reorganization (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No Yes Date -- -- 07-Feb-2019 -- IN00669682 ►DLI 9 DLR 3.1 (b) Consultants selected for ZRS business plans and contracts (Yes/No, Process, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) July 2019 4/1/2019 Page 6 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Value No -- No Yes Date -- -- 07-Feb-2019 -- IN00669727 ►DLI 10 DLR 3.2 (a) Draft reports completed on the consultancies referred to in DLR 3.1 (a) (Yes/No, Process, 1,500,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No Yes Date -- -- 07-Feb-2019 -- IN00669700 ►DLI 11 DLR 3.2 (b) Draft reports completed on the consultancies referred to in DLR 3.1 (b) (Yes/No, Process, 1,500,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No Yes Date -- -- 07-Feb-2019 -- IN00669684 ►DLI 12 DLR 3.3 (a) Implementation of the regulatory and functional review recommendations identified by the consulting services set forth in DLR 3.1 (a) (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669723 ►DLI 13 DLR 3.3 (b) new ZRS organization structure including separate management and accounting of operations and infrastructure in place as evidenced by an RS letter to the WB (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669685 ►DLI 14 DLR 3.3 (c) PSO, TAC, MAIC and Performance Contracts signed by the respective parties thereto (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669737 ►DLI 15 DLR 3.3 (d) Asset management plans in place as evidenced by report on asset conditions generated by asset management system (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 4/1/2019 Page 7 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Value No -- No No Date -- -- 07-Feb-2019 -- IN00669738 ►DLI 16 DLR 3.3 (e) ZRS business plans for operations, infrastructure and workshops approved by its board (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669739 ►DLI 17 DLR 3.3 (f) Financial accounting system and a human resources management system acquired (Yes/No, Process, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669740 ►DLI 18 DLR 3.4 (a) Financial accounting system and a human resources management system installed and fully functional (Yes/No, Outcome, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669777 ►DLI 19 DLR 3.4 (b) The PSO and MAIC are fully funded as evidenced by the RS confirmation of financial commitments (Yes/No, Outcome, 3,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669781 ►DLI 20 DLR 3.4 (c) PSO and MAIC reviewed and if required updated after their firs year of implementation (Yes/No, Outcome, 3,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 Value No -- No No Date -- -- 07-Feb-2019 -- IN00669778 ►DLI 21 DLR 3.4 (d) Approved ZRS business plans for operations infrastructure and workshops reviewed and if required updated after their first year of implementation (Yes/No, Outcome, 1,171,750.00, 0%) Baseline Actual (Previous) Actual (Current) July 2019 4/1/2019 Page 8 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Value No -- No No Date -- -- 07-Feb-2019 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P161122 IBRD-88080 Effective USD 60.60 60.60 0.00 40.39 18.51 69% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P161122 IBRD-88080 Effective 07-Dec-2017 06-Mar-2018 31-Aug-2018 31-Dec-2021 31-Dec-2021 Cumulative Disbursements 4/1/2019 Page 9 of 10 The World Bank Implementation Status & Results Report Republika Srpska Railways Restructuring Project (P161122) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/1/2019 Page 10 of 10