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Serbia-Corridor-X-Highway-Project Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: ICR00004519 IMPLEMENTATION COMPLETION AND RESULTS REPORT (Loan No. 7746-YF/8655-YF) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF EUR 310.2 MILLION (US$ 426.9 MILLION EQUIVALENT) TO THE Republic of Serbia FOR THE Public Disclosure Authorized CORRIDOR X HIGHWAY PROJECT March 24, 2020 Transport Global Practice Europe And Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2019) Currency Unit = Euro EUR 0.92 = US$1 US$ 1.09 = EUR1 RSD 117.50 = EUR1 FISCAL YEAR July 1 - June 30 Regional Vice President: Cyril E Muller Country Director: Linda Van Gelder Regional Director: Lucio Monari Practice Manager: Karla Gonzalez Carvajal Task Team Leader(s): Svetlana Vukanovic ICR Main Contributor: Mitsuyoshi Asada/Nino Pkhikidze ABBREVIATIONS AND ACRONYMS AADT Annual Average Daily Traffic AF Additional Financing BSM Black Spot Management CD Country Director CLLD Community-Led Local Development CPF Country Partnership Framework CPI Consumer Price Index CoS Corridor of Serbia CPS Country Partnership Strategy CXHP Corridor X Highway Project E&S Environmental and Social EBRD European Bank for Reconstruction and Development EBRD WBF EBRD Western Balkans Fund EIA Environmental Impact Assessment EIB European Investment Bank EIRR Economic Internal Rate of Return EMP Environmental Management Plan EU European Union EUR Euro FIRR Financial Internal Rate of Return FM Financial Management FY Fiscal Year GDP Gross Domestic Products GoS Government of Serbia HDM Highway Development and Management Model HiPERB Hellenic Plan for the Economic Reconstruction of the Balkans IBRD International Bank for Reconstruction and Development ICR Implementation Completion and Results Report IFI International Financing Institution IFR Interim Financial Report IOC Incremental Operating Costs IMF International Monetary Fund IPA EU Instrument for Pre-accession Assessment iRAP International Road Assessment Program IRIs Intermediate Results Indicators ITD Integrated Territorial Development ITI Integrated Territorial Investment ITS Intelligent Transport System K10DOO Koridor 10 Drustvo sa Organicenom Odgovornoscu LCD Loan Closing Date M&E Monitoring and Evaluation NRSC National Road Safety Council NRSS National Road Safety Strategy SEETO South East Europe Transport Observatory PAD Project Appraisal Document PBMC Performance-based Maintenance Contract PCN Project Concept Note PDO Project Development Objective PEPS Public Enterprise ‘Putevi Srbije’ PPP Public Private Partnership RAMS Road Asset Management System RAP Resettlement Action Plan RF Results Framework RPF Resettlement Policy Framework RVP Regional Vice President SBA Stand-by Arrangement TA Technical Assistance US$ United States Dollars WB World Bank WBIF Western Balkans Investment Framework TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) .......................................9 II. OUTCOME .................................................................................................................... 10 A. RELEVANCE OF PDOs ............................................................................................................ 10 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 11 C. EFFICIENCY ........................................................................................................................... 13 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 15 E. OTHER OUTCOMES AND IMPACTS (IF ANY) ............................................................................ 16 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 17 A. KEY FACTORS DURING PREPARATION ................................................................................... 17 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 18 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 20 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 20 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 21 C. BANK PERFORMANCE ........................................................................................................... 22 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 23 V. LESSONS AND RECOMMENDATIONS ............................................................................. 24 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 26 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 35 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 37 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 38 ANNEX 5. WIDER SOCIO-ECONOMIC BENEFITS OF CORRIDOR X ............................................ 42 ANNEX 6. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 45 1 PROJECT CONTEXT ........................................................................................................ 45 1.1. CONTEXT AT APPRAISAL ................................................................................................ 45 1.2 COMPONENTS ............................................................................................................... 47 1.3 SIGNIFICANT CHANGES DURING IMPLEMENTATION ....................................................... 50 2 COST ALLOCATION AND DISBURSEMENTS ..................................................................... 50 3 PROJECT IMPLEMENTATION ......................................................................................... 52 4. ACHIEVEMENT OF PROJECT DEVELOPMENT OBJECTIVES ............................................... 53 4.2 MONITORING AND EVALUATION ................................................................................... 53 5. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 54 6. BORROWER AND BANK PERFORMANCE ........................................................................ 54 6.1 BANK PERFORMANCE .................................................................................................... 54 7. LESSONS AND RECOMMENDATIONS ............................................................................. 55 ANNEX 7. SUPPORTING DOCUMENTS .................................................................................. 57 The World Bank CORRIDOR X HIGHWAY PROJECT (P108005) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P108005 CORRIDOR X HIGHWAY PROJECT Country Financing Instrument Serbia Investment Project Financing Original EA Category Revised EA Category Full Assessment (A) Full Assessment (A) Organizations Borrower Implementing Agency Corridors of Serbia, Koridori Srbije Drustvo sa Republic of Serbia Ogranicenom Odgovornoscu Project Development Objective (PDO) Original PDO The Project Development Objective is to increase transport efficiency and improve traffic safety on the three project sections ofCorridor X, between Nis and Dimitrovgrad and Grabovnica and Donji Neradovac respectively, and to improve road management and roadsafety in Serbia. Page 1 of 57 The World Bank CORRIDOR X HIGHWAY PROJECT (P108005) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 388,000,000 388,000,000 335,213,259 IBRD-77460 38,900,000 38,900,000 40,340,629 IBRD-86550 Total 426,900,000 426,900,000 375,553,888 Non-World Bank Financing 0 0 0 Borrower/Recipient 60,000,000 60,000,000 7,240,000 Total 60,000,000 60,000,000 7,240,000 Total Project Cost 486,900,000 486,900,000 382,793,888 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 09-Jul-2009 06-Nov-2009 28-Mar-2014 31-Dec-2015 30-Sep-2019 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 11-Feb-2014 117.57 Change in Loan Closing Date(s) 25-Oct-2016 275.96 Additional Financing 25-Jun-2018 355.61 Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial Page 2 of 57 The World Bank CORRIDOR X HIGHWAY PROJECT (P108005) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 30-Nov-2009 Satisfactory Satisfactory 0 02 03-May-2010 Satisfactory Satisfactory 0 03 18-Dec-2010 Satisfactory Satisfactory 16.01 04 29-Mar-2011 Satisfactory Moderately Satisfactory 17.85 05 13-Feb-2012 Satisfactory Moderately Satisfactory 33.12 06 28-Dec-2012 Moderately Satisfactory Moderately Unsatisfactory 61.21 07 28-Jun-2013 Moderately Satisfactory Moderately Unsatisfactory 78.85 08 29-Dec-2013 Moderately Satisfactory Moderately Unsatisfactory 111.45 09 05-Apr-2014 Moderately Satisfactory
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