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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: ICR1520 IMPLEMENTATION COMPLETION AND RESULTS REPORT (COFN-03810 IBRD-38060) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$ 110 MILLION TO THE RUSSIAN FEDERATION FOR A ENVIRONMENTAL MANAGEMENT PROJECT Public Disclosure Authorized March 30, 2012 Sustainable Development Department Russian Federation Public Disclosure Authorized Europe and Central Asia CURRENCY EQUIVALENTS (Exchange Rate Effective 06/30/2011) Currency Unit = Ruble 1.00 Ruble = US$ 0.033 US$ 1.00 = 30.25 Rubles FISCAL YEAR Russian Federation: January 1 – December 31 World Bank: July 1 – June 30 ABBREVIATIONS AND ACRONYMS CPPI Center for Preparation and Implementation of International Projects on Technical Assistance (originally Center for Project Preparation and Implementation) CAS World Bank Country Assistance Strategy EFP Environmental Framework Program EMP Environmental Management Project FLA Final Loan Agreement GC General Consultant GOR Government of Russia IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICR Implementation Completion Report IS International Shopping MEPNR Ministry of Environmental Protection and Natural Resources MNR Ministry of Natural Resources MNRE Ministry of Natural Resources and Ecology MOEDT Ministry of Economic Development and Trade MOF Ministry of Finance NEAP National Environmental Action Plan NPAF National Pollution Abatement Facility QAG Quality Assurance Group PEL Past Environmental Liability REAP Regional Environmental Action Plan RF Russian Federation Roshydromet Hydrometeorology and Environmental Monitoring Service of the Russian Federation SAR Staff Appraisal Report SB Supervisory Board SCEP State Committee for Environmental Protection SEAP Sectoral Environmental Action Plan TA Technical Assistance Vice President: Philippe H. Le Houerou Country Director: Michal J Rutkowski Sector Manager: Benoit Paul Blarel Project Team Leader: Adriana Damianova ICR Team Leader: Adriana Damianova Richard J. Cooke/ Bernard Baratz/ ICR Primary Authors: Vassili Rodionov Craig M. Meisner/Adriana ICR Editors: Damianova Russian Federation Environmental Management 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 .......................................... 11 3. Assessment of Outcomes .......................................................................................... 20 4. Assessment of Risk to Development Outcome ......................................................... 25 5. Assessment of Bank and Borrower Performance ..................................................... 25 6. Lessons Learned ....................................................................................................... 27 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 30 Annex 1. Project Costs and Financing .......................................................................... 31 Annex 2. Outputs by Component ................................................................................. 32 Annex 3. Economic and Financial Analysis ................................................................. 47 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 48 Annex 5. Beneficiary Survey Results ........................................................................... 50 Annex 6. Stakeholder Workshop Report and Results ................................................... 50 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 51 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 66 Annex 9. List of Supporting Documents ...................................................................... 67 MAP IBRD No.39156 A. Basic Information Environmental Country: Russian Federation Project Name: Management Project COFN-03810,IBRD- Project ID: P008821 L/C/TF Number(s): 38060 ICR Date: 02/08/2012 ICR Type: Core ICR RUSSIAN Lending Instrument: FIL Borrower: FEDERATION Original Total USD 110.00M Disbursed Amount: USD 86.47M Commitment: Revised Amount: USD 86.47M Environmental Category: B Implementing Agencies: Ministry of Natural Resources and Ecology (MNRE) Ministry of Economic Development Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 12/16/1992 Effectiveness: 08/30/1995 08/30/1995 08/30/1995 09/27/1996 07/23/1997 01/19/1998 03/05/1999 01/25/2000 08/07/2002 Appraisal: 01/24/1994 Restructuring(s): 08/13/2003 03/31/2004 01/20/2006 06/28 /2007 05/14/2008 08/19/2009 12/22/2009 Approval: 11/08/1994 Mid-term Review: 02/10/1998 02/10/1999 Closing: 06/30/2001 06/30/2011 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Unsatisfactory Risk to Development Outcome: High Bank Performance: Unsatisfactory Borrower Performance: Unsatisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Unsatisfactory Government: Unsatisfactory Implementing Quality of Supervision: Unsatisfactory Unsatisfactory Agency/Agencies: Overall Bank Overall Borrower Unsatisfactory Unsatisfactory 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 Yes None at any time (Yes/No): (QEA): Problem Project at any Quality of Yes Satisfactory time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory1 D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 13 13 Other industry 67 67 Solid waste management 5 5 Sub-national government administration 9 9 Water supply 6 6 Theme Code (as % of total Bank financing) Administrative and civil service reform 11 11 Environmental policies and institutions 23 23 Other financial and private sector development 22 22 Pollution management and environmental health 22 22 Water resource management 22 22 1 This rating was assigned during the last restructuring (Dec., 2009) and retained until closing in recognition of agency efforts in advancing preparation of Part F (Past Environmental Liabilities) project - despite continued institutional delays. Hence this rating does not align with project DO ratings at closure – moderately unsatisfactory. E. Bank Staff Positions At ICR At Approval Vice President: Philippe H. Le Houerou Johannes F. Linn Country Director: Michal Rutkowski R. Cheetham Sector Manager: Benoit Paul Blarel (Acting) John Brown Project Team Leader: Adriana J Damianova Roger J. Batstone ICR Team Leader: Adriana J Damianova ICR Primary Author: Richard J. Cooke Bernard Baratz Vassili Rodionov F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The Development Objective of the Environmental Management Project (EMP) was to provide critical support to the Environmental Framework Program (EFP) whose major objectives were to incorporate environmental and natural resources management concerns directly into the economic, social and political adjustment process, and strengthen financial delivery mechanism. The specific objectives of the EMP were to assist the Russian authorities to: (i) strengthen and streamline federal and regional institutional structures for environmental and natural resource management; (ii) improve federal and regional environment policy and strategy formulation and implementation; (iii) upgrade environmental and natural resource management systems; (iv) address priority environmental management investment needs through the setting up of initial capitalization of the National Pollution Abatement Facility; (v) assist in the financing of economically viable, high priority resource recovery/pollution abatement projects in the country; and (vi) facilitate the flow of donor funds and resources to the environmental protection sector. To monitor progress and development objective achievements two overall indicators were selected and reported in Implementation Supervision Reports (ISRs) to comply with Bank operational requirements at the time (see below). However, the Staff Appraisal Report (SAR) presented a set of key performance indicators for which each component was benchmarked (Table 4.4, page 64) and is reproduced, with results, as Table A2.1 in Annex 2 of this Implementation Completion Report (ICR). Revised Project Development Objectives (as approved by original approving authority) There were no formal revisions to the Project's Development Objectives. See also Section 1.3 for further details. (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 Achievement of reductions of emissions (discharges, wastes) projected in NPAF Indicator 1 : subproject appraisal documents Includes projected reductions for 5 completed projects and emissions - for 2 projects with Value 120,000 t signed quantitative or No reduction discharges - FLAs: emissions - Qualitative) 35,000 t solid 123,000 t; wastes - 250,000
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