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Document of Public Disclosure Authorized The World Bank Report No: ICR000052 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-70140) Public Disclosure Authorized ON A LOAN IN THE AMOUNT OF US$35.36 MILLION TO LITHUANIA FOR A Public Disclosure Authorized KLAIPEDA PORT PROJECT June 24, 2009 Public Disclosure Authorized Sustainable Development Department South Central Europe and Baltics Country Unit Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective May 4, 2009) Currency Unit = Litas 1.00 = US$ 0.386 US$ 1.00 = 2.599 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy KSSA Klaipeda State Seaport Authority CDF Confined Disposal Facility LISCO Lithuanian Shipping Company CEEC Central and Eastern European Countries LR Lithuanian Railways CIS Commonwealth of Independent States LRA Lithuanian Road Administration CMEA Council for Mutual Economic Assistance MOE Ministry of Energy EBRD European Bank for Reconstruction & Dev. MOT Ministry of Transport EIB European Investment Bank MT Million Tons EIRR Economic Internal Rate of Return NPV Net Present Value FMS Financial Management System OED Operations Evaluation Department FSU Former Soviet Union PHRD Policy and Human Resource Development GDP Gross Domestic Product PIU Project Implementation Unit GPN General Procurement Notice SA Special Account IAS International Accounting Standards SAL Structural Adjustment Loan ICB International Competitive Bidding SOE Statement of Expenditure ICR Implementation Completion Report SPN Special Procurement Notice IMO International Maritime Organization TEU Twenty Foot Equivalent Units KLASCO Klaipeda Stevedoring Company Vice President: Shigeo Katsu Country Director: Theodore Ahlers (Acting) Sector Manager: Henry G. R. Kerali Project Team Leader: Henry G. R. Kerali ICR Team Leader: Ross Pavis LITHUANIA KLAIPEDA PORT 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 1. Project Context, Development Objectives and Design ...............................................1 2. Key Factors Affecting Implementation and Outcomes...............................................5 3. Assessment of Outcomes ............................................................................................ 7 4. Assessment of Risk to Development Outcome.........................................................12 5. Assessment of Bank and Borrower Performance...................................................... 13 6. Lessons Learned ....................................................................................................... 14 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners...........14 Annex 1. Project Costs and Financing ..........................................................................15 Annex 2. Outputs by Component.................................................................................. 16 Annex 4. Bank Lending and Implementation Support/Supervision Processes.............20 Annex 5. Beneficiary Survey Results ........................................................................... 22 Annex 6. Stakeholder Workshop Report and Results...................................................23 Annex 7. Summary of Borrower’s ICR and/or Comments on Draft ICR ..................... 24 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders .......................27 Annex 9. List of Supporting Documents ...................................................................... 28 MAP A. Basic Information Country: Lithuania Project Name: Klaipeda Port Project Project ID: P035776 L/C/TF Number(s): IBRD-70140,TF-21584 ICR Date: 06/24/2009 ICR Type: Core ICR MINISTRY OF Lending Instrument: SIL Borrower: TRANSPORT Original Total USD 35.4M Disbursed Amount: USD 35.4M Commitment: Environmental Category: A Implementing Agencies: Klaipeda State Seaport Authority Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 07/23/1997 Effectiveness: 10/24/2000 Appraisal: 11/30/1999 Restructuring(s): Approval: 05/11/2000 Mid-term Review: 07/19/2002 Closing: 09/30/2004 12/31/2008 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): i Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Ports, waterways and shipping 100 100 Theme Code (as % of total Bank financing) Infrastructure services for private sector development 50 50 Pollution management and environmental health 25 25 Water resource management 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Shigeo Katsu Johannes F. Linn Country Director: Theodore O. Ahlers Basil G. Kavalsky Sector Manager: Motoo Konishi Eva Molnar Project Team Leader: Henry G. R. Kerali Pedro N. Taborga ICR Team Leader: Ross S. Pavis ICR Primary Author: Michel Luc Donner Ross S. Pavis F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The main objective of the project is to strengthen the long-term competitiveness of the Port of Klaipeda in the Baltic Region. The project's second objective is to improve environmental conditions by preventing spills, improving waste reception facilities, and providing necessary disposal facilities and continuous monitoring of environmental conditions at the port. Revised Project Development Objectives (as approved by original approving authority) ii (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Indicator 1 : Volume of oil products Value quantitative or (#000 tons): 459 2,000 9,360 Qualitative) Date achieved 06/15/1999 12/31/2002 12/31/2007 Comments Target for 2002 was 2 million tons; actual2.7 million. Since then, volume more (incl. % than tripled to 9.4 million implying average growth of 23% per year. achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Volume of dry fertilizers Value (quantitative (#000 tons): 1,759 4,085 7,213 or Qualitative) Date achieved 06/15/1999 12/31/2002 12/31/2007 Comments Target for 2002 was 4.1 million tons; actual was 2.35 million (60% short). (incl. % However, since then the volume has nearly tripled to 7.2 million, implying achievement) average growth of 21%. G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 06/29/2000 Satisfactory Satisfactory 0.00 2 12/28/2000 Satisfactory Highly Satisfactory 0.35 3 06/22/2001 Satisfactory Highly Satisfactory 3.85 4 11/05/2001 Satisfactory Satisfactory 10.26 5 03/21/2002 Satisfactory Satisfactory 15.46 6 08/14/2002 Satisfactory Satisfactory 16.63 7 05/06/2003 Satisfactory Satisfactory 20.98 8 10/07/2003 Satisfactory Satisfactory 23.12 9 06/04/2004 Satisfactory Satisfactory 24.17 10 10/28/2004 Satisfactory Satisfactory 26.83 11 05/04/2005 Satisfactory Satisfactory 27.53 12 10/26/2005 Satisfactory Satisfactory 29.70 iii 13 03/31/2006 Satisfactory Satisfactory 29.70 14 11/21/2006 Satisfactory Satisfactory 29.70 15 05/18/2007 Moderately Satisfactory Moderately Satisfactory 29.70 16 05/22/2008 Moderately Satisfactory Moderately Satisfactory 29.96 17 12/04/2008 Moderately Satisfactory Moderately Satisfactory 35.31 H. Restructuring (if any) Not Applicable I. Disbursement Profile iv 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal With an area of 65,200 square kilometers, Lithuania is the largest and southernmost of the Baltic countries. It lies on the eastern shore of the Baltic Sea and borders with Latvia in the north, Belarus in the east, and Poland and Russia’s Kaliningrad region in the south. Since the time of Lithuania’s independence in March 1990, when an unfavorable economic environment with declining output and deteriorating terms of trade imposed significant hardships on the population, market-oriented reforms remained consistently in place, which resulted in macroeconomic stabilization and transition towards a market economy. Lithuania adopted policies such as monetary and budgetary discipline, currency reform, decreasing energy subsidies, privatization, social assistance reform and restructuring of the financial sector. Gross Domestic Product per capita had grown from US$1,138 in 1994 to an estimated US$2,832 per capita in 1998. While longer-term fundamentals remained sound, Lithuania’s short-term prospects
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