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FOR OFFICIAL USE ONLY Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 35790 IMPLEMENTATION COMPLETION REPORT (SCL-42640) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF US$ 200 MILLION TO THE REPUBLIC OF POLAND FOR AN EMERGENCY FLOOD RECOVERY PROJECT Public Disclosure Authorized June 15, 2006 Environmentlly and Socially Sustainable Development Unit Europe and Central Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective July 2005) Currency Unit = PLN PLN 3.42 = US$ 1 US$ 0.29 = PLN 1 FISCAL YEAR January 31 December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy EBRD European Bak for Reconstruction and Development EIB European Investment Bank ERR Economic Rate of Return EIA Environmental Impact Assessment EU-PHARE European Union Assistance Program for Poland and Hungary GIS Georgraphic Informaiton System GoP Government of Poland IBRD International Bank for Reconstruction and Development IGiK Institute of Geodesy and Cartography ICR Implementaiton Completion Report IMGW Institute of Meteorology and Water Management MOE Ministry of Environment MOF Ministry of Finance MFR Ministry of Flood Recovery MTR Mid-Term Review NGO Non Governmental Organization NRMP National Reconstruction and Modernization Program OKI Coordination and Information Center for Flood Management ONDR Office of Natural Disaster Recovery O&M Operation and Maintenance PCU Project Coordination Unit RZGW Regional Water Management Authority SME Small and Medium Enterprise TA Technical Assistance TOR Terms of Reference UNDP United Nations Development Program USAID United States Agency for International Development USIDA United States Trade and Development Agency Vice President: Shigeo Katsu Country Director Daniela Gressani Sector Manager Benoit P. Blarel Task Team Leader Masood Ahmad POLAND EMERGENCY FLOOD RECOVERY PROJECT CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 2 4. Achievement of Objective and Outputs 5 5. Major Factors Affecting Implementation and Outcome 13 6. Sustainability 15 7. Bank and Borrower Performance 16 8. Lessons Learned 17 9. Partner Comments 18 10. Additional Information 19 Annex 1. Key Performance Indicators/Log Frame Matrix 23 Annex 2. Project Costs and Financing 24 Annex 3. Economic Costs and Benefits 26 Annex 4. Bank Inputs 28 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 30 Annex 6. Ratings of Bank and Borrower Performance 31 Annex 7. List of Supporting Documents 32 Annex 8. Monitoring Forecasting and Warning System (SMOK) 33 Annex 9. Project Implementation Unit in Wroclow - Completion Report 39 Map(s) 34706 Project ID: P053796 Project Name: POLAND FLOOD EMERGENCY Team Leader: Masood Ahmad TL Unit: ECSSD ICR Type: Core ICR Report Date: June 14, 2006 1. Project Data Name: POLAND FLOOD EMERGENCY L/C/TF Number: SCL-42640 Country/Department: POLAND Region: Europe and Central Asia Region Sector/subsector: Central government administration (45%); Housing construction (20%); General water, sanitation and flood protection sector (16%); Roads and highways (12%); District heating and energy efficiency services (7%) Theme: Natural disaster management (P); Water resource management (P) KEY DATES Original Revised/Actual PCD: 10/24/1997 Effective: 03/17/1998 03/17/1998 Appraisal: 10/29/1997 MTR: 12/06/1999 Approval: 12/18/1997 Closing: 02/28/2001 12/15/2005 Borrower/Implementing Agency: Government of Poland/Ministry of Finance; Government of Poland/Chancellery of Prime Minister; Government of Poland/Ministry of Interior and Administration Other Partners: Ministry of Environment STAFF Current At Appraisal Vice President: Shigeo Katsu Johannes Linn Country Director: Daniela Gressani Basil Kavalsky Sector Director: Benoit Blarel Kevin Cleaver Team Leader at ICR: Masood Ahmad Piotr Wilczynski ICR Primary Author: Mahwash Wasiq; Barbara Letachowicz 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: H Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S S Project at Risk at Any Time: No 3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: The two principal objectives of the Project were to assist the Government of Poland in restoring basic infrastructure in municipalities and rural areas affected by the 1997 flood by repairing structures and facilities of economic importance, and restoring lifeline facilities and services; and reducing vulnerability and risk of future flooding through strengthening and modernizing flood management system. The project constituted a major response to the unprecedented flood of 1997, the largest that Poland experienced over two centuries. The 1997 flood resulted in inundation of an area of 650 km2 in three voivodships (administrative regions) of Slaski (Silesia), Opolskie and Dolnoslaskie (Lower Silesia) damaging 37,000 buildings, 866 bridges, over 2,000 km of roads and 129 km of dikes. The estimated damages were about PLN 8.5 billion. It caused the loss of 54 lives; flooding of some 700,000 households, while about 110,000 people had to be evacuated. Given the extent of the flood damages, the recovery efforts were a true challenge for the government. Therefore, extensive financial support was mobilized internationally by various donors. The World Bank in turn led coordination of the flood recovery efforts and also provided USD 200 million through the Emergency Flood Recovery Project (EFRP). The Bank response was appropriate and swift, the Project was prepared in a record time. Given the emergency nature of the project, it was not listed in the CAS explicitly, nevertheless, it supported the CAS goal to sustain private sector growth, especially in the area of increased private sector participation in infrastructure development, by engaging local vendors, contractors and technical service providers to implement infrastructure rehabilitation and restoration. In addition, the project supported the CAS goal of environmental and social sustainability of reforms by repairing public/communal environmental infrastructure and basic infrastructure necessary for economic activities. The development objectives were appropriate. The innovative feature of the project was that unlike usual emergency recovery projects it also included elements for reducing vulnerability due to future floods. Considering the recurrence of extreme floods in Poland it was vital to reduce vulnerability due to future floods. Thus incorporating measures to improve the overall flood forecasting, warning and management system in the country, and institutional capacity for better flood management in emergency operation proved profoundly beneficial for Poland. Among other things, this work led to development of a flood protection program for the Odra River Basin. 3.2 Revised Objective: The project objectives were not revised during implementation. 3.3 Original Components: The project was to support the Government of Poland’s strategic program of National Reconstruction and Modernization (NRMP) prepared in response to the 1997 food. The program consisted of implementation of immediate, mid range and long term activities aimed at restoration of damaged areas and facilities and development of an advanced early warning system against natural disasters. The project was designed to support elements of the medium and long term priorities. The project components are as follows: A. MUNICIPAL & RURAL INFRASTRUCTURE (US$267.7 million planned vs US$295 million actual). The component was to support enabling basic and normal level of operation of water supply, wastewater treatment, waste management and transportation system, district heating and public and commercial buildings in the target region, and thereby improving health, safety and environmental conditions of the - 2 - affected population. Under the component, it was planned to restore water supply, sewerage, drainage, and solid waste facilities; local roads and bridges; district heating and gas system; and communal housing and public buildings. At project appraisal, about 74 water supply projects, 86 sewerage projects and 8 solid waste disposal projects were identified. In addition, a number of road rehabilitation projects, heating and gas systems repair and a number of communal housing projects were identified. Proposed subprojects were to be co-financed by other donors, and most importantly by the local gminas (municipalities). Furthermore, necessary technical assistance in areas of procurement and contract management, construction design and supervision was to be provided to the municipal and gmina level administrations, as they were the principle implementers under this component. In addition, the Project Coordination Unit (PCU) was also to provide the necessary oversight and supervision of this component. B. FLOOD MANAGEMENT AND HAZARD REDUCTION (US$227.5 million vs US$ 226.3 million) The objective of this component was to improve the existing flood management system, to reduce risk of flood hazard and vulnerability,
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