Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia & Bosnia & Herzegovina GEF Adriatic Sea Environmental Pollution Control Project (I) (P143921) Croatia & Bosnia & Herzegovina GEF Adriatic Sea Environmental Pollution Control Project (I) (P143921) EUROPE AND CENTRAL ASIA | Western Balkans | Water Global Practice | Global Environment Project | Investment Project Financing | FY 2014 | Seq No: 9 | ARCHIVED on 15-Feb-2019 | ISR36029 | Implementing Agencies: Ministry of Finance, Ministry of Environment and Energy, Environmental Protection and Energy Efficiency Fund, Ministry of Foreign Trade and Economic Relations Key Dates Key Project Dates Bank Approval Date: 11-Jun-2014 Effectiveness Date: 05-Dec-2014 Planned Mid Term Review Date: 24-Oct-2017 Actual Mid-Term Review Date: 12-Dec-2017 Original Closing Date: 15-Mar-2017 Revised Closing Date: 15-Feb-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project’s development and global environmental objectives are: (a) to reduce the discharge of pollutants with transboundary importance, particularly Nitrogen, in selected hot-spots of the eastern Adriatic Sea; and (b) to improve the capacity in Croatia and Bosnia and Herzegovina to prepare pollution control projects in selected localities of Dalmatia and Herzegovina and to strengthen the capacity to monitor environmentally sensitive areas of the sea. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Demonstration investments to reduce nutrient discharges and improve water quality monitoring capacity:(Cost $27.77 M) Component 2. Technical Assistance:(Cost $1.98 M) Component 3: Project Management and Dissemination:(Cost $0.22 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This ISR covers the period from December 2018 to February 2019. This is the final ISR of the Project. The last implementation support mission took place from February 5 to 15, 2019. The number of project beneficiaries benefiting from the reduced discharge of pollutants and improved water quality monitoring capacity will be available during the ICR period as the Sitnica landfill in Croatia is expected to be completed at that time. 3/6/2019 Page 1 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia & Bosnia & Herzegovina GEF Adriatic Sea Environmental Pollution Control Project (I) (P143921) In Croatia, project implementation is progressing well. The contract for Sitnica landfill works was signed on October 11, 2107 and was to be implemented in the following 12 months. However, shortly after the beginning of works on the Sitnica landfill, it was discovered that the type of soil beneath the landfill conflicted with the soil type that was used for design purposes. This resulted in a requirement to change originally contracted works to incorporate change in the volume and technology needed, thus considerably increasing costs as well as extending the original completion date. The Bank hired an independent consultant, who confirmed the soil type and cost increase. Following the confirmation of the increased costs, the Environmental Protection and Energy Efficiency Fund (EPEEF) secured additional funds to cover the funding gap. Contract amendments reflecting these changes were signed in late May 2018, with the expected completion of works planned for June 2019. For this reason, it was agreed with EPEEF that the withdrawal of grant proceeds will be 100 percent until the full disbursement of GEF grant. Co-financing was secured through budget allocation in EPEEF. Studies planned as part of Component 2: Technical Assistance (TA) are either contracted or fully completed. Bosnia and Herzegovina. Implementation of Component 1: Demonstration investments to reduce nutrient discharges and improve water quality monitoring capacity, more specifically the construction of leachate treatment plant in Mostar, was significantly delayed due to the previous lengthy rebidding selection process for the Design, Supply, and Installation for treatment of leachate at the sanitary landfill “Uborak-Buđevci” in Mostar, and is currently delayed due to ongoing overextended selection of a supervising engineer. Given that the project closing date is February 15, 2019 and that the works have not yet commenced, it is unlikely that works will be finalized on time. The contractor has requested termination of the contract that will be processed by the Project Closing Date. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- Moderate Moderate Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes To reduce the discharge of pollutants with transboundary importance IN00670222 ►Nutrient load reduction (Nitrogen(N)) achieved under the project (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 IN00670225 3/6/2019 Page 2 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia & Bosnia & Herzegovina GEF Adriatic Sea Environmental Pollution Control Project (I) (P143921) ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 140,500.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 IN00670241 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 To improve the capacity to prepare pollution control projects IN00670223 ►Investment Proposals prepared for EU funding (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 6.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 To strengthen the capacity to monitor environmentally sensitive area of the sea IN00670224 ►Number of sea water quality measurements reported annually by the Croatian Ministry of Environment and Natural Resources from the new monitoring system (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Manual reporting -- not yet available 3,000.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 Overall Comments PDO Indicator one: Nutrient load reduction (Nitrogen(N)) achieved under the project (Tonnes/year), with 140,500 project beneficiaries, of which 50% are female. The works on the Sitnica landfill in Croatia are expected to be completed by June 2019 with nutrient testing undertaken at completion and a month afterwards for comparisons. These results which are not available at Project closing will inform the Results Framework of the ICR. In Bosnia and Herzegovina, the works did not commence by the Project Closing Date and the contract was terminated. This indicator will not be fully achieved. Indicator two: Investment Proposals prepared for EU funding. Seven investment proposals under the Croatian trust fund have been prepared and presented to the EU. This PDO indicator has been achieved. Indicator three: Number of sea water quality measurements reported annually by the Croatian Ministry of Environment and Natural Resources from the new monitoring system. This information for 2019 is not yet available at Project closure. It is likely that the PDO indicator will be achieved. Intermediate Results Indicators by Components 3/6/2019 Page 3 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia & Bosnia & Herzegovina GEF Adriatic Sea Environmental Pollution Control Project (I) (P143921) Component 2. Technical Assistance IN00670242 ►Analysis of the policy, legal and/or institutional reforms conducted and draft report completed per TOR (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- in progress Yes Date 09-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 IN00670244 ►Approval of the Strategic Environmental Assessment for leachate management plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- done (Yes) Yes Date 09-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 IN00670245 ►Feasibility studies for the rehabilitation of leachate and wastewater treatment plants completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 4.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 IN00670246 ►Monitoring stations sampled (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 Component 1. Demonstration investments to reduce nutrient discharges and improve water quality monitoring capacity IN00670243 ►Leachate management systems completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 19-Sep-2013 26-Oct-2018 11-Feb-2019 15-Feb-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143921 TF-17706 -- USD 4.33 4.33 0.00 4.06 0.27 94% P143921 TF-17727 -- USD 2.44 2.44 0.00 0.68 1.76 28% 3/6/2019 Page 4 of 5 Public Disclosure Copy The World Bank Implementation Status & Results Report Croatia & Bosnia & Herzegovina GEF Adriatic Sea Environmental Pollution Control Project (I) (P143921) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143921 TF-17706 -- 08-Sep-2014 08-Sep-2014 05-Dec-2014 15-Mar-2017 15-Feb-2019 P143921 TF-17727 -- 10-Sep-2014 10-Sep-2014 03-Jun-2015 15-Mar-2017 15-Feb-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 19-Sep-2016 Related Project(s) There are no related projects. 3/6/2019 Page 5 of 5