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Croatia - Social Protection System Modernization Project : restructuring (Inglês)

The Social Protection System Modernization Project aims to improve the efficiency and effectiveness of Croatia’s social protection system. The project includes a results-based component, with 14 DLIs worth EUR 50 million, and an investment component of EUR 20 million. Two DLIs, ‘establishment of the Central Disability Certification Institute with adequate staffing and methodology adopted’ (DLI #5) and ‘adoption of the Operational Plan for Deinstitutionalization of Social Welfare Homes’ (DLI # 11) worth EUR 4 million together, have been achieved and associated funds disbursed. Activities were launched in all five sub-components under the project’s investment component, but a slowdown in implementation occurred in 2015 in advance of parliamentary elections. A period of political changes that followed, with snap elections in 2016, halted the main project-supported reforms and almost all activities with exception of the activation sub-component. Therefore, progress towards achievement of the Project Development Objective (PDO) and implementation progress have been rated as ‘Unsatisfactory’. The project will be closed with an unsatisfactory rating because the PDO has not been achieved and the activities were not carried out. The exact rating will be determined with the implementation completion and results report (ICR), but could range from moderately unsatisfactory to highly unsatisfactory. The proposed restructuring will move the project closing date from December 31, 2018 to November 30, 2017 and cancel the undisbursed loan funds in the amount of EUR 63,277,234.82.

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