The World Bank Report No: ISR6128

Implementation Status & Results Russian Federation St. Petersburg Economic Development Project (P069063)

Operation Name: St. Petersburg Economic Development Project (P069063) Project Stage: Implementation Seq.No: 18 Status: ARCHIVED Archive Date: 17-Aug-2011 Country: Russian Federation Approval FY: 2003

Public Disclosure Authorized Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Financial Intermediary Loan Implementing Agency(ies): Ministry of Culture and Mass Communication Key Dates Board Approval Date 15-May-2003 Original Closing Date 31-Aug-2009 Planned Mid Term Review Date Last Archived ISR Date 17-Aug-2011 Public Disclosure Copy Effectiveness Date 24-Jan-2005 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 18-May-2008

Project Development Objectives Project Development Objective (from Project Appraisal Document) 1) Policy and regulatory environment is conducive to the expansion of private sector enterprises; 2) Larger and more efficient private market for land and real estate; 3) Improved City fiscal management capacity; 4) City to preserve its comparative advantage in culture and the arts. Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost Rehabilitation of Cultural Assets in St. Petersburg 80.40 Cultural Investment Facility (CIF) 7.99 Institutional Strengthening 0.47 Project Implementation 10.62

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory

Public Disclosure Authorized Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating

Implementation Status Overview Project implementation progressed well since the last Bank team working visit in June 2011. Disbursement is on schedule, and US$91.96 million (90% of the Loan) has already been Public Disclosure Copy disbursed. The project also leveraged US$365.2 million in the RF co-financing.

Under cultural sites rehabilitation subcomponent, eight out of nine sub-projects (Shostakovich State Academic Philharmonia, Peter and Paul Fortress, Temple of Friendship of

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Pavlovsk State Museum and Conservation Area, St. George Hall and Corps de Gardes Pavilions of Mikhailovsky Palace of the State , Winter Garden of the of the State Russian Museum, Turkish Bath Pavilion and Hermitage Kitchen and Park of the State Tsarskoe Selo Museum) have been completed. Stage 1 of the State Hermitage East Wing reconstruction (the largest and the most complex building reconstruction job currently underway in St. Petersburg) was completed in December 2010. The technical quality of works at all rehabilitated sites meets the project requirements and is of high standard.

Stage 2 of the State Hermitage East Wing reconstruction is well underway and is planned to be completed before the end of 2013, including final testing of all installed engineering systems and preparation of needed executive documentation. Therefore, all activities related to the Hermitage East Wing reconstruction shall be completed before the SPEDP loan closing date of December 31, 2013.

The project's subcomponent on Cultural Investment Facility (CIF) grants continues to demonstrate high quality and impact. As of February 1, 2012, the total disbursement US$7.03 million (88% of the total component amount). As a result of 7 rounds of competition, 33 grants have been awarded. Sub-projects under 29 grants have been successfully completed, and the sub-projects under remaining grants are planned for completion in 2012.

Public Disclosure Copy Implementation of the Institutional Strengthening sub-component which includes two programs - Staff Reserve program and Institutional Review of St.Petersburg Cultural Committee program - is also progressing well. The training under the Staff Reserve subprogram has been completed. As the main result of the Staff Reserve program completion, 30 program participants prepared viable project proposals. The St. Petersburg Cultural Committee allocates funds to finance two of the most interesting project proposals while three more project proposals got financing from the CIF funds. Institutional Review of the St.Petersburg Cultural Committee program will be implemented via the Automatic Control System (ACS) to monitor the performance of the city cultural institutions. Currently the development of the ACS is at its final stage.

Locations Country First Administrative Division Location Planned Actual Russian Fed. Not Entered

Russian Fed. Not Entered Mariinsky Theatre

Russian Fed. Not Entered St. Petersburg State

Russian Fed. Not Entered The Russian Museum

Russian Fed. Not Entered Peter and Paul Fortress

Russian Fed. Not Entered St. Petersburg Conservatory

Russian Fed. Not Entered

Russian Fed. Not Entered

Russian Fed. Not Entered Shostakovich Philharmonic

Results

Project Development Objective Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target 1. More competitive environment due to 10% p. Number Value 96900.00 228000.00 141871.00 a. increase in number of new SMEs registered Date 31-Dec-2003 31-Dec-2007 31-Dec-2007 in SPB. Comments This number is calculated toward the date of completion of implementation of adjustment component of the Project 2. 5% p.a. increase in private transactions for Number Value 90402.00 212352.00 115379.00 land and real estate. Date 31-Dec-2002 31-Dec-2007 31-Dec-2007 Comments

Public Disclosure Copy This value is calculated toward the date of completion of implementation of adjustment component of the Project 3. Credit rating by international credit rating Text Value Fitch IBCA: BB (positive) S&P: BBB (stable)-data as of Creditworthy status achieved agency S&P: BB (stable) Moody's: 31 May 2011,: Fitch: BBB and maintained Ba2 (Figures are for 2003) (stable) - data as of Jan 2012; Moody's: Baa1 (stable) -data as of May 31, 2011 Date 31-Dec-2003 01-Feb-2012 31-Aug-2009 Comments Creditworthy status achieved and maintained despite of impact of the global economic crisis 4. Growth in tourism 8%p.a. Number Value 2737685.00 5000000.00 4022557.00 Date 31-Dec-2002 01-Feb-2012 31-Aug-2009 Comments Data for Y2010, as reported This value is calculated by St. Petersburg Governor V. toward the original project Matvienko at the Meeting of closing date the Russian-Finish Inter- Ministerial Committee for Economic Cooperation in (March 2011). It is expected that official statistical data on number of tourists visited S-Pete in 2011 will be available in April - May 2012 Public Disclosure Copy Intermediate Results Indicators

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Indicator Name Core Unit of Measure Baseline Current End Target 1. Divestiture of City owned enterprises Text Value Baseline value is zero as this 150 city owned premises Reduction of the number of is the start of the process were privatized in 2002, 47 City-owned or City-controlled city owned enterprises commercial enterprises in St. (MUEs) were auctioned in Petersburg though diversiture 2005, 45 MUEs were or oth er means, including but auctioned in2006 and 12 not limited to SUEs, achieved MUEe - in 2007 and maintained Date 01-Jan-2002 31-Dec-2007 31-Dec-2007 Comments 2. Number of viable/sustainable applications Number Value 0.00 30.00 20.00 Public Disclosure Copy submitted by participants to St. Petersburg Date 26-Feb-2009 30-Dec-2010 30-Dec-2010 Cultural Committee as a result of completio n of the Staff Reserve program Comments Baseline value is zero as this The Staff Reserve program No less than 20 viable is the start of the process completed in September, applications 2010. 30 program participants prepared viable project proposals which were presented to the St. Petersburg Cultural Committee on September 6-9, 2010 Number of completed sub-projects under sub- Number Value 0.00 8.00 9.00 component "Rehabilitation of Cultural Assets in Date 24-Jan-2005 01-Feb-2012 31-Dec-2013 St. Petersburg" Comments The baseline is zero, as it is 8 out of 9 sub-projects have The number of cultural start of the project been completed. The biggest heritage sites specified in the implementation sub-project on the Hermitage LA as amended on August 6, East Wing reconstruction will 2007 be completed before end 2013 Number of completed sub-projects under Number Value 0.00 29.00 20.00 "Cultural Investment Facility" sub-component Date 24-Jan-2005 01-Feb-2012 31-Dec-2013 Comments Baseline is zero, as it is start As a result of 7 rounds of Average number of sub- of the project implementation competition, grants for 33 projects to be financed from sub-projects have been Cultural Investment Facility awarded, 29 have been grants (one grant=one sub- completed, the remaining are project) planned for completion in 2012 Public Disclosure Copy

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Cultural Investment Facility (CIF) resources Text Value Baseline is zero, as it is start All CIF funds are fully All CIF funds (US$ 7.99 mln. fully committed by end of fourth year of project of the project: no CIF funds committed, including allocated of loan amount) are fully implementation and completion of all CIF committed and no CIF for financing 3 project committed; and operations by end of project operations completed proposals prepared by implementation of all CIF participants of Staff Reserve subprojects financed from the Program under Institutional awarded CIF grants is Strengthening component. successfully completed Date 24-Jan-2005 01-Feb-2012 31-Dec-2013 Comments

Data on Financial Performance (as of 21-Mar-2012) Public Disclosure Copy Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P069063 IBRD-46940 Effective 15-May-2003 04-Aug-2004 24-Jan-2005 31-Dec-2013

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P069063 IBRD-46940 Effective USD 161.10 101.10 60.00 95.32 5.78 94.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation N/A

Restructuring History RVP Approved on 06-Aug-2007, Level two Approved on 17-Jun-2011

Related Projects There are no related projects. Public Disclosure Copy Public Disclosure Copy

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