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Document of The World Bank Public Disclosure Authorized Report No: 25371-HR FOR OFFICIAL USE ONLY PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF US$156.5 MILLION TO REPUBLIC OF CROATIA FOR THE RIJEKA GATEWAY PROJECT Public Disclosure Authorized May 9,2003 Infrastructure Sector Unit South Central Europe Country Unit Europe and Central Asia Region document has a restricted distribution and may be used by recipients only in the performance of heir official duties. Its contents mav not otherwise be disclosed without World Bank authorization. I Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective May 9,2003) CurrencyUnit = HRK HRKl = US$0.12 US$ = HRK6.65 FISCAL YEAR January 1 -- December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CES Croatian Employment Service CFAA Country Financial Accountability Assessment EA Environmental Assessment EBRD European Bank for Reconstruction and Development ED1 Electronic Data Interchange EMP Environmental Management Plan ERR Economic Rate ofReturn FRR Financial Rate ofReturn GDP Gross Domestic Product GPN General Procurement Notice HAC Hrvatske Autoceste (Croatian Motorways Company) HC Hrvatske Ceste (Croatian Roads Company) HZ Hrvatske Zeljeznice (Croatian Railways Company) ICR Implementation Completion Report LR Luka Rijeka d.d. (port operating company) MMATC Ministry of Maritime Affairs, Transport and Communications MOI Ministry of Interior MPWRC Ministry ofPublic Works, Reconstruction and Construction NEAR North East Adriatic Range NPV Net Present Value PHRD Japan Policy and Human Resources Development Fund PMS/BMS Pavement and Bridge Management System PPF Project Preparation Facility PPP Private-Public Partnership PR4 Port of Rijeka Authority RMG Rotterdam Maritime Group (Consultant) SOE State Owned Enterprise TTFSE Trade and Transport Facilitation in Southeast Europe VTMS Vessel Traffic Management System Vice President: Johannes F. Linn, ECAVP Country Managermirector: Andrew N. Vorkink, ECCUOS Sector Managerhlirector: Eva MolnarIHossein Razavi, ECSIE Task Team Leader/Task Manager: Michel Audige, ECSIE FOR OFFICIAL USE ONLY CROATIA RIJEKA GATEWAY PROJECT CONTENTS A. Project Development Objective Page 1. Project development objective 3 2. Key performance indicators 3 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 3 2. Main sector issues and Government strategy 4 3. Sector issues to be addressed by the project and strategic choices 9 C. Project Description Summary 1. Project components 9 2. Key policy and institutional reforms supported by the project 12 3. Benefits and target population 12 4. Institutional and implementation arrangements 12 D. Project Rationale 1. Project alternatives considered and reasons for rejection 14 2. Major related projects financed by the Bank andor other development agencies 14 3. Lessons learned and reflected in the project design 15 4. Indications ofborrower commitment and ownership 16 5. Value added ofBank support in this project 16 E. Summary Project Analysis 1. Economic 16 2. Financial 17 3. Technical 22 4. Institutional 22 5. Environmental 23 6. Social 25 7. Safeguard Policies 27 F. Sustainability and Risks 1. Sustainability 27 2. Critical risks 27 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. 3. Possible controversial aspects 28 G. Main Conditions 1. Effectiveness Condition 28 2. Other 28 H. Readiness for Implementation 30 I. Compliance with Bank Policies 30 Annexes Annex 1: Project Design Summary 31 Annex 2: Detailed Project Description 34 Annex 3: Estimated Project Costs 39 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Summary 40 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summary 43 Annex 6: (A) Procurement Arrangements 62 (B) Financial Management and Disbursement Arrangements 69 Annex 7: Project Processing Schedule 73 Annex 8: Documents in the Project File 74 Annex 9: Statement of Loans and Credits 76 Annex 10: Country at a Glance 78 Annex 11: SWOT analysis for the port ofRijeka 80 Annex 12: Environmental Assessment Executive Summary 87 Annex 13: Land Acquisition and Resettlement Plan 96 Annex 14: Government Project Policy Letter (Draft) 102 MAP(S) No. IBRD 32355 ECSIE Date: May 9,2003 Team Leader: Michel Audige Sector Manager: Eva Molnar Sector(s): Roads and highways (45%), Ports, waterways Country Director: Andrew N. Vorkink and shipping (45%), Central government administration Project ID: PO43 195 ( 10%) Lending Instrument: Specific Investment Loan (SIL) Theme(s): Export development and competitiveness (p), Infrastructure services for private sector development (P), Social risk reduction (S), Other public sector govemance (SI Project Financing Data [XI Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Amount (US$m): $156.5 - Borrower Rationale for Choice of Loan Terms Available on File: IYes Proposed Terms (IBRD): Variable-Spread Loan (VSL) Grace period (years): 5 Years to maturity: 15 Commitment fee: 0.75% Front end fee (FEF) on Bank loan: 1.00% Financing Plan (US$m): Source Local Foreign Total BORROWERS 45.20 I 64.40 I 109.60 IBRD 56.50 100.00 156.50 Total: 101.70 I 164.40 266.10 Borrower: PRA, HC, HAC Loan amounts including front-end fees (USSm): PRA (55. l),HC (84.1), and HAC (17.3) Responsible agency: PRA, HC, HAC Port of Rijeka Authority (PRA) Address: Riva 1 Street, Rijeka 51 000 Contact Person: Mr. Bojan Hlaca, Director General Tel: 385-51-212 974 Fax: 385-51-213 112 Email: [email protected] Other Agency(ies): Croatian Roads (HC) Address: Voncinina 3, Zagreb 10001 Contact Person: Mr. Vladimir Bizjak, President of the Management Board Tel: 385-1- 472-2580 Fax: 3 85- 1-472-258 1 Email: [email protected] Croatian Motorways (HAC) Address: Voncinina 2, Zagreb 10001 Contact Person: Mr. Stanko Kovac, President of the Management Board Tel: 385-1-469-4400 Fax: 385-1-469-4500 Email: [email protected] Expected closing date: 09/30/2009 -2- A. Project Development Objective 1. Project development objective: (see Annex 1) The overall objective of the project is to increase Croatia's trade competitiveness by improving the international transport chain through the Rijeka Gateway for both freight and passengers traffic through modernizing the port and road network connections, and privatizing port operations. Specific objectives include: (i)increasing efficiency and improving financial, social and environmental conditions at Rijeka Port, rehabilitating infrastructure and replacing equipment; (ii)preparing to redevelop part of Rijeka Port for urban purposes; and (iii)improving international road connections linked to the Rijeka gateway, and the administration of the road sector. 2. Key performance indicators: (see Annex 1) Performance indicators have been designed and agreed with the Government during project preparation. Indicators will center on the speed of transformation and modernization of Rijeka Port, and of the road sector. Key outcome/impact indicators for the project's objectives: financing and operating transport sector infrastructure and services. veloper is selected to redevelop Delta and port0 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1) Document number: 22633-HR Date of latest CAS discussion: 06/1999 The last Croatia country Assistance strategy was discussed by the Board on June 3, 1999 (R99-89[IFC/R99-75]). A CAS Progress Report was issued on August 22,2001 (Report No. -3- 2263-HR). The Project Development Objectives listed above derive from and support the following CAS objectives: Strengthening market institutions and competitiveness. e Increasing private sector involvement in financing and operating transport sector infrastructure and services. 2. Main sector issues and Government strategy: Croatia has achieved a great deal in the transport sector since independence: war damage has been repaired, a body of law generally suitable to govern the transport sector of a sovereign State has been created, and a number of transport enterprises have been privatized. Sector issues were assessed by the Bank in Republic of Croatia - Policy Directions for Transport (Report No. 19447-hr, June 15, 1999), and as part of a comprehensive diagnosis of strategic development and sector policy issues and recommendations prepared for the new Government (A Policy Agenda for Reform and Growth, February 14,2000). The main sector issues and Government strategy are summarized below: Economic Role of Riieka Port: Transport plays an important role in the international trade which has become more significant since independence and in reestablishing potentially profitable transit traffic. The Government has recognized the key role of Rijeka Port by declaring that Rijeka and Ploce are the two strategic ports (the latter primarily serves Bosnia and Herzegovina, BiH). Rijeka Port's physically protected position and natural depth of 25 meters makes it the only port in the North Eastem Adriatic Range (NEAR) capable of handling the largest vessels. However, between 1980 and 1997, the Port of Rijeka lost almost 70 percent of its total throughput in general and bulk cargo. While the total Northern Adriatic market (Rijeka, Koper, Trieste excluding liquid bulk traffic) increased from about 16 million tons in 1990
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    Villa Benke Region: Kvarner Sleeps: 10 - 12 Overview The fabulous Villa Benke is designed as three superb apartments over two floors. With four bedrooms in total, sleeping eight guests, one apartment has a sofa bed so you could actually squeeze another two guests in if required. The villa would suit an extended family wanting a little space of their own or a group of friends. It is so contemporary making fantastic use of glass. The villa is situated on an extraordinary raised plot in Matulji, overlooking the wonderful coastline. Matulji is a lovely, charming, quiet resort very close to Opatija and Istrian peninsula. Opatija is a serene seaside Croatian gem on the Kvarner Gulf, full of magnificent Mediterranean restaurants, fabulous beaches, majestic fountains and cultural jewels. Villa Benke occupies such an amazing, sunny position with the most breathtaking views. It is a fantastic choice of accommodation. Each of the apartments is chic and stylish with incredible vistas and fabulous, modern furnishings. On the ground floor, the massive 70 sqm open-plan living, dining and kitchen space with a modern fireplace will definitely impress. It is incredibly light and airy with full walls of glass. The kitchen is sleek and just perfect. There is a twin bedroom with a separate, exquisite shower room and an awesome king bedroom with a dressing room and stunning bathroom. You can laze in the bath with a glass of fizz and admire the spectacular views! It is spectacular. You will feel so indulged! The living room and master bedroom open directly to the wonderful terrace, garden and pool.
  • An Story About the Maritime Heritage of the Northern Adriatic ITINERARIES

    An Story About the Maritime Heritage of the Northern Adriatic ITINERARIES

    An inspiring story about the maritime heritage of the northern Adriatic ITINERARIES AND MARKINGS A tiny boat, a project, and a tiny smack as well, will take all you you will come across another old port, a so-called visit the old town of Cres and enjoy a multitude veritable little floating centre of maritime heritage. chance travellers from the Slovene Littoral - Izola, “mandrać”, below the old town of Lovran. Take a of colours entwined in the reflections of houses There is no scarcity of maritime events here either. Piran and Portorož, across Rovinj to Kvarner. look at the small old wooden boats and stop by the and small boats on the surface of the sea at the You can try boat racing in Nerezine. All this will Start your excursion in Izola with a tour of the tower, which houses the Kuća Lovranskega Guca local “mandrać” (mole-enclosed boat berth) and take up a lot of your time, however in the end, don’t Izolana Sea houses, where you will hear tales about (House of the Lovran “guc” boat). You will continue continue until you reach the gems that are Osor, forget that the With Lošinj Sails Around the World the maritime and littoral character of this town, your journey to gorgeous Opatija, where you can Nerezine, Mali and Veliki Lošinj. It is a difficult event will take you on a journey through the stories which is noted for its fish processing plant. The take a stroll on the promenade (Lungo Mare) all the task, with one more beautiful than the other, but about our sailors, whose patron saint still waits surrounding area is brimming with fascinating way to the small and picturesque Volosko harbour.