The World Bank Report No: ISR14549

Implementation Status & Results ODRA RIVER BASIN FLOOD PROTECTION (P086768)

Operation Name: ODRA RIVER BASIN FLOOD PROTECTION (P086768) Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 10-Jun-2014 Country: Poland Approval FY: 2007

Public Disclosure Authorized Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Environment Key Dates Board Approval Date 21-Mar-2007 Original Closing Date 30-Nov-2014 Planned Mid Term Review Date 26-Sep-2011 Last Archived ISR Date 05-Jan-2014 Public Disclosure Copy Effectiveness Date 09-Jul-2007 Revised Closing Date 30-Nov-2014 Actual Mid Term Review Date 26-Sep-2011

Project Development Objectives Project Development Objective (from Project Appraisal Document) The main development objective o f the Project i s to protect the population in the ORB against loss o f life and damage to property caused by severe flooding. This would be achieved by: (i) reducing the extreme flood peaks through storage in a dry polder on the Odra River just upstream o f Raciborz , enabling a reduction o f the flood peak downstream o f the and allowing bettercontrol o f the operation o f t he river system; and (ii)by increasing the flood carrying capacity o f t he Odra River channels through and around Wroclaw. The Project would protect more than 2.5 million people against flooding in several such as Raciborz, Kedzierzyn, Kozle, Krapkowice, , Brzeg, Olawa and Wroclaw, and settlements in the three voivodships o f Slaslue, Opolskie and Dolnoslaslue. Public Disclosure Authorized Has the Project Development Objective been changed since Board Approval of the Project?

Yes No

Component(s)

Component Name Component Cost Construction of Raciborz Flood Retention Reservoir 286.78 Modernization of Wroclaw Floodway System 333.55 Improving Flood Management, Monitoring & Evaluation and Supervision of EA, EMP and RAP 35.47 Project Management Technical Assistance and Training 7.62

Overall Ratings

Public Disclosure Authorized Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Public Disclosure Copy Implementation Status Overview Good implementation progress has been made since the last supervision mission (Nov 2013) and technical visit (March 2014). Most of the key agreed actions from the last mission

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have been achieved or are on-going. Significant physical progress has been made with the challenging B2-3.1 (Sinohydro) and B2-2.1 (Pol-Aqua/Dragados) contracts. Sinohydro has brought substantially more staff and equipment to the work sites and has put in place in Wroclaw a stronger management team. Pol-Aqua/Dragados is able to find solutions with the contract engineer to various site access problems and design changes. The working relationship between these contractors and contract engineer is also much improved, partly reflecting a new team leader for the contract engineer. Serious challenges remain with respect to the working relationships between the contract engineers and contractors for the Raciborz A1-1 activity. PCU intervention and PIU (RZGW GL) strengthening will be critical to ensure adequate contract management and mediation amongst parties. There is a risk of delay in the work schedule for the dry polder if several technical disagreements are not resolved. The independent panel of experts has been mobilized and will be a critical instrument to help in mediating the situation. The author’s supervision responsibility will also need to be clarified. Progress at the new village remains good with the lead supervision consultancy now in place to oversee the communal infrastructure activities. The B3 evaluation reports require further detailed technical justifications and contracts are expected to be signed in a few months. For these B3 contracts, confirmation of financing and resolution with respect to construction permits and land acquisition authority is needed to avoid bottlenecks to implementation. The 3-year extension is to be processed once B3 contracts are signed. Countersignature to the recent amendments to the project agreements is pending approval. Disbursement is 50%. Overall achievement of development objective (DO) and implementation progress (IP) ratings remain at Moderately Satisfactory.

Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Poland Not Entered Wroclaw

Poland Not Entered Raciborz

Poland Not Entered Wojewodztwo Dolnoslaskie

Poland Not Entered Wojewodztwo Opolskie

Poland Not Entered Wojewodztwo Slaskie

Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduction in area flooded, damages avoided Text Value Protection up to floods of B1 component contracts are Protection to reach flood of and lives saved due to floods of various 2,200 m3/s nearing completion 3,600 m3/s magnitudes and return periods (10 year, 20, Date 20-Jul-1997 02-Jun-2014 30-Nov-2014 50,100 years, 1000 years and 1997 flood) Comments Too early to assess as construction works not yet finished.

Intermediate Results Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Component A. Reduction in area flooded, Text Value 0% Foundation for future spill way Reservoir completed, 100% damages avoided and lives saved due to is being prepared and of the physical works floods of various magnitudes and return significant earth removal has completed satisfactorily periods (10 year, 20, 50, 100 years, 1000 years been accomplished and 1997 flood) in Raciborz and W Date 05-Jul-2007 02-Jun-2014 30-Nov-2014 Comments Too early to assess as construction works not yet finished. Component B: Full protection to Wroclaw city Text Value 0% B1 component contracts are Completion and operation of against flooding. almost complete. B2 100% of the planned works

Public Disclosure Copy component contracts have shown significant improvement. B3 contracts have yet to be signed. Date 05-Jul-2007 02-Jun-2014 30-Nov-2014 Comments Too early to assess as construction works not yet finished. Component C: Improved linkage of flood Text Value No linkage between flood System is complete and in the The linkage between the forecasting with flood management forecasting and management testing phases now modern and upgraded flood system forecasting system and the flood management syste is full upgraded Date 20-Jul-1997 02-Jun-2014 30-Nov-2014 Comments New system for forecasting, information dissemination, and decision making is nearly complete and should be able to produce forecasts soon.

Data on Financial Performance (as of 23-Apr-2014)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P086768 IBRD-74360 Effective 21-Mar-2007 11-May-2007 09-Jul-2007 30-Nov-2014 30-Nov-2014

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P086768 IBRD-74360 Effective USD 184.00 184.00 0.00 86.64 99.48 47.00

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Disbursement Graph Public Disclosure Copy

Key Decisions Regarding Implementation 1. The mission has recommended further intensifying the supervision of the A1 Raciborz contract, where the working relationship between the contractor (Dragados) and contract engineer (Ove Arup) is poor. Mutual trust is low. Delays in engineering approvals are common and technical disagreements seem not to get resolved. The team has suggested greater use of the independent panel of experts to help mediate these different technical views. Resolving these working arrangements will be critical if this contract is to be completed per schedule. This will need to be closely monitored (by the PCU and PIU) over the next month to avoid any slippage.

2. As the processing of the Widawa B3 contracts nears its completion, it will be important to rapidly obtain from the Ministry of Finance a formal confirmation of the financing of these contracts to avoid any delay in signing them. Moreover, an important clarification with respect to land acquisition responsibility needs resolution. With the technical complexity of these works and the limited number of construction seasons remaining, a strong implementation start will be critical.

3. As the Project moves forward, continued strengthening of PIU staffing is needed, including hiring additional technical staff for DZMiUW (in anticipation of the complex Widawa contracts), ensuring full staffing and adequate salary incentives for RZGW Wroclaw, and recruiting a Deputy Project Manager and technical specialists for the PIU in Raciborz. Additional staff for PCU and some skills reconfiguration may also be required, especially as preparation of the new Vistula/Lower Odra investment project accelerates.

4. To help ensure liquidity under the project as the construction works accelerate several amendments were agreed to and signed by the Bank. Countersignature is needed so that the new disbursement ratios and an increase in special accounts can take effect immediately.

Restructuring History Level 2 CD Decision on 31-Jan-2014 Public Disclosure Copy Related Projects There are no related projects.

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