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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR2569 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-74530) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF EURO 100.00 MILLION TO THE REPUBLIC OF CROATIA FOR A Public Disclosure Authorized INLAND WATERS PROJECT June 27, 2013 Sustainable Development Department Central Europe and the Baltics Country Unit Europe and Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective December 31, 2012) Currency Unit = Croatian Kuna (HRK) EURO 1.00 = HRK 7.49 US$ 1.00 = HRK 5.74 EURO 1.00 = US$ 1.32 FISCAL YEAR (January 1- December 31) ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CEB Council of Europe Bank CCPCP Coastal Cities Pollution Control Project EBRD European Bank for Reconstruction and Development EF Environmental Framework EIB European Investment Bank EMP Environmental Management Plan ERR Economic Rate of Return EU European Union FM Financial Management FRR Financial Rate of Return HV Croatian Waters (Hrvatske vode) ICR Implementation Completion and Results Report ISR Implementation Status and Results Report IWP Inland Waters Project ISPA Instrument for Structural policies for Pre-Accession JASPERS Joint Assistance to Support Projects in European Regions M&E Monitoring and Evaluation MWSC Municipal Water and Sewerage Company MOA Ministry of Agriculture, and initially MOAFWM Ministry of Agriculture, Forestry, and Water Management MRDFWM Ministry of Regional Development, Forestry, and Water Management NPV Net Present Value O&M Operations and Maintenance PAD Project Appraisal Document PIU Project Implementation Unit PDO Project Development Objective PHRD Policy and Human Resources Development RF Results Framework SFA Subsidiary Financing Agreements TA Technical Assistance WWT(P) Wastewater Treatment (Plant) Vice President: Philippe H. Le Houerou Country Director: Mamta Murthi Sector Manager: Sumila Gulyani Project Team Leader: Elisabetta Capannelli ICR Team Leader: Elisabetta Capannelli ICR Author: Anna Cestari CROATIA Inland Waters Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph Executive Summary .................................................. 1 1. Project Context, Development Objectives and Design. ................ ..... 2 2. Key Factors Affecting Implementation and Outcomes ................ ..... 7 3. Assessment of Outcomes ........................................... 13 4. Assessment of Risk to Development Outcome. .................... ..... 20 5. Assessment of Bank and Borrower Performance ................ ........ 20 6. Lessons Learned ..................................... ......... 22 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ..... 23 Annex 1. Project Costs and Financing ................................. 24 Annex 2. Outputs by Component ............................... ..... 25 Annex 3. Economic and Financial Analysis ............................. 33 Annex 4. Bank Lending and Implementation Support/Supervision Processes ...... 44 Annex 5. Stakeholder Workshop Report and Results. .......... ............. 46 Annex 6. Summary of Borrower's ICR and/or Comments on Draft ICR .... ..... 47 Annex 7. Comments of Cofinanciers and Other Partners/Stakeholders . .......... 58 Annex 8. List of Supporting Documents .......................... ..... 59 MAP A. Basic Information Country: Croatia Project Name: Inland Waters Project Project ID: P098948 L/C/TF Number(s): IBRD-74530 ICR Date: 06/27/2013 ICR Type: Core ICR REPUBLIC OF Lending Instrument: SIL Borrower: ROATIA CROATIA OmitnaTt:l USD 133.41M Disbursed Amount: USD 122.65M Commitment: Revised Amount: USD 133.41M Environmental Category: F Implementing Agencies: Hrvatske vode (HV) Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original DateDate(s) Concept Review: 03/16/2006 Effectiveness: 01/29/2008 01/29/2008 Appraisal: 03/15/2007 Restructuring(s): 12/14/2011 Approval: 05/30/2007 Mid-term Review: 12/15/2009 02/05/2010 Closing: 12/31/2012 12/31/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Low or Negligible Bank Performance: Moderately Satisfactory Borrower Performance: Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Satisfactory of Supervision: Satisfactory Implementing Satisfactory uality Agency/Agencies: Overall Bank Overall Borrower PerorBan: Moderately Satisfactory Satisfactory Performane Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation Indicators QAG Assessments Rating Performance (if any) Potential Problem Project Quality at Entry No Nn at any time (Yes/No): (QEA): Problem Project at any Yes Quality of None time (Yes/No): Supervision (QSA): DO rating before Stsatr Closing/Inactive status: Stsatr D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 4 4 Flood protection 9 12 Wastewater Collection and Transportation 26 22 Wastewater Treatment and Disposal 27 30 Water supply 34 32 Theme Code (as % of total Bank financing) City-wide Infrastructure and Service Delivery 49 49 Environmental policies and institutions 13 13 Regional integration 13 13 Water resource management 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Shigeo Katsu Country Director: Mamta Murthi Anand K. Seth Sector Manager: Sumila Gulyani Sumter Lee Travers Project Team Leader: Elisabetta Capannelli Sudipto Sarkar ICR Team Leader: Elisabetta Capannelli ICR Primary Author: Anna Cestari F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the project is to improve water supply services, wastewater services, and flood protection measures in municipalities selected from the inland part of Croatia. Revised Project Development Objectives (as approved by original approving authority) (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at approval Target Completion or documents) Values Target Years Indicator 1 : Projects submitted to the Government that will be proposed for financing by the EU or other financial institutions (number) Value quantitative or 0 3 7 8 Qualitative) Date achieved 01/01/2008 12/31/2012 12/31/2012 12/31/2012 Comments Target has been exceeded. Projects prepared are valued at EUR 123 million, (incl. % already have been reviwed by the EU (JASPERS) and are likely to receive achievement) financing. Indicator 2 : Water supply coverage (percentage) 40% 85% (Baseline indicators were (coverage is 85% established at defined as % of (3 sub-projects -- Value estructuring in households in the Northern Baranja: quantitative or December 2011. 3 sub- service area of the 90%; Davor-Nova Qualitative) rojects -- Northern utility company Gradiska: 70%; Baranja: 48%; Davor- able to connect to Slatina Donji ova Gradiska: 27%; water supply Miholjac: 95%) Slatina Donji Miholjac: network) 4 7 % ) _12 / 3 1/ 2 0 1 2 _ _ _ _ _ _ _ _ _ _ _ [Date achieved 05/01/2007 12/31/2012 12/31/2012 Comments Target has been met. The team retroactively calculated the population weighted (incl. % average water supply coverage, which increased from 45% in 2008 to 87% in achievement) 2012. Indicator 3 : Sewerage coverage (percentage) 35%76% (Baseline indicators were (Coverage defined (Target was 73% established at Vleestabcting in as % of established at (4 sub-projects -- Valuehouseholds in 2011 Ogulin quantitative or December 2011. 4 sub- restructuring 50%, Virovitica (Coerage efmed) ro Qualitative) projects -- Ogulin 0%, in light of the 80 %, Nasice 78%, ViroviticaVirvitca 57%,7%,Nasce Nasice utility company scope of sub- Southern Baranja 62%, Southern Baranja able to connect to poects being 80%) 0%). implemented) [Date achieved 101/01/2008 12/31/2012 12/31/2012 12/31/2012 Comments Target has been met. The team retroactively calculated the population weighted (incl. % in 2012. achievement) average sewerage coverage, which increased from 39% in 2008 to 74% Original Target Formally Actual Value Values (from Revised Achieved at approval Target Completion or documents) Values Target Years Indicator 4 : Retention volume for flood protection (mln m3) 600 Value (Baseline indicators were quantitative or established at 720 800 Qualitative) restructuring in December 2011) Date achieved 01/01/2008 12/31/2012 12/31/2012 Comments (incl. % The target has been exceeded. achievement) Indicator 5 : ICustomers satisfied with the services (percentage) Value 65 quantitative or (based on surveys 90 80 80.9 Qualitative) erformed in 2010) Date achieved 04/01/2010 12/31/2012 12/31/2012 12/31/2012 Comments (incl. % The target established when baseline was taken has been met. achievement) Indicator 6: Working ratio (number) 0.7 (To assure consistency, calculation based All utilities had working on weighted ratios greater than 1. average working (To2 asure1 Value Working ratio is ando for ate quantitative or calculated by dividing 1 and wastewater Qualitative) operating expenses sv basedon (excluding depreciation) dataicected in by operating revenues. 2012 anled01 directly from utilities for all years of project ad_implementation) Date achieved 01/01/2008 05/31/2012 c12/31/2012
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