The World Bank Report No: ISR10928

Implementation Status & Results Macedonia, former Yugoslav Republic of Regional and Local Roads Program Support Project (P107840)

Operation Name: Regional and Local Roads Program Support Project Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 29-Jun-2013 (P107840)

Public Disclosure Authorized Country: Macedonia, former Yugoslav Republic of Approval FY: 2008 Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Sector Investment and Maintenance Loan Implementing Agency(ies): Key Dates Public Disclosure Copy Board Approval Date 13-May-2008 Original Closing Date 31-Jul-2013 Planned Mid Term Review Date 29-Nov-2010 Last Archived ISR Date 25-Nov-2012 Effectiveness Date 17-Oct-2008 Revised Closing Date 31-Jul-2013 Actual Mid Term Review Date 07-Mar-2011

Project Development Objectives Project Development Objective (from Project Appraisal Document) Reduced cost of access to markets and services for communities served by regional and local roads.

Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized

Component(s)

Component Name Component Cost Regional Roads 51.10 Local Roads 51.10 Institutional Support 3.00

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory

Public Disclosure Authorized Overall Risk Rating Moderate Moderate

Implementation Status Overview During the latter part of 2012, implementation of the Project continued to be affected by the decision of the Government to impose a cap on disbursements from the loan which it had imposed on all Bank supported projects in the country as a result of the financialconstraints the Government was experiencing. To address this problem, the Government in Public Disclosure Copy November 2012 decided to transform the implementing agency, Agency for State Roads (ASR), into a public enterprise (Public Enterprise for State Roads - PESR) and to have this entity assume the role of Borrower of the Loan. The effect being that the new entity will be able to implement the Project in accordance with the sector and project needs. These changes triggered a request for restructuring of the Loan in November 2012.

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The proposed restructuring was negotiated with the Government and includes: (a) change of the Borrower from the Member Country Government to the Public Enterprise for State Roads (PESR) through assignment of the Loan from the Member Country to the Public Enterprise for State Roads (PESR) and assumption of said Loan by PESR; (b) Guarantee from the Member Country in relation to the Loan; (c) extend the project closing date by 24 months to enable full achievement of the Project Development Objective (PDO); (d) revise the PDO and results framework to include the following: (i) better reflect project outcomes in the PDO statement and introduce two new outcome indicators and a new intermediate outcome indicator; (ii) amend the target for one of the existing intermediate outcome indicators and incorporate four new intermediate outcome indicators; (e) add new legal covenants in the Loan Agreement; and (f) modify disbursement arrangements. The revised PDO is to reduce the cost of safe access to markets and services for communities served by regional and local roads in the Guarantor's territory, and improve institutional capacity for investment planning and road safety.

Locations Country First Administrative Division Location Planned Actual

Public Disclosure Copy Macedonia Not Entered Vinica

Macedonia Not Entered Vetunica

Macedonia Not Entered Opstina

Macedonia Not Entered Valandovo

Macedonia Not Entered

Macedonia Not Entered

Macedonia Not Entered

Macedonia Not Entered Star Dojran

Macedonia Not Entered Smojmirovo

Macedonia Not Entered Opstina

Macedonia Not Entered Rizanicino

Macedonia Not Entered Opstina Resen

Macedonia Not Entered Rabrovo

Macedonia Not Entered Probishtip

Macedonia Not Entered

Macedonia Not Entered Stanica Ovce Pole

Macedonia Not Entered Nov Dojran

Public Disclosure Copy Macedonia Not Entered

Macedonia Not Entered Krivogashtani

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Country First Administrative Division Location Planned Actual Macedonia Not Entered Opstina Kratovo

Macedonia Not Entered Kratovo

Macedonia Not Entered Kozjak

Macedonia Not Entered Kicevo

Macedonia Not Entered

Macedonia Not Entered Istibanja

Public Disclosure Copy Macedonia Not Entered Drenovo

Macedonia Not Entered Dracevo

Macedonia Not Entered Dolno Dupeni

Macedonia Not Entered

Macedonia Not Entered Davidovo

Macedonia Not Entered Makedonski Brod

Macedonia Not Entered Ilinden

Macedonia Not Entered Opstina Pehcevo

Macedonia Not Entered Opstina Dojran

Macedonia Not Entered Opstina

Macedonia Not Entered Opstina Centar Zupa

Macedonia Not Entered Opstina Debar

Macedonia Not Entered Opstina Dolneni

Macedonia Not Entered Opstina

Macedonia Not Entered Opstina Ilinden

Macedonia Not Entered Opstina Kavadarci

Macedonia Not Entered Opstina Kicevo

Public Disclosure Copy Macedonia Not Entered Opstina Krivogastani

Macedonia Not Entered Opstina Makedonski Brod

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Macedonia Not Entered Opstina Negotino

Macedonia Not Entered Opstina Petrovec

Macedonia Not Entered Opstina Prilep

Macedonia Not Entered Opstina Probistip

Macedonia Not Entered Opstina Rankovce

Macedonia Not Entered Opstina Saraj

Macedonia Not Entered Opstina Sopiste Public Disclosure Copy Macedonia Not Entered Opstina Stip

Macedonia Not Entered Opstina Struga

Macedonia Not Entered Opstina Strumica

Macedonia Not Entered Opstina Studenicani

Macedonia Not Entered Opstina Sveti Nikole

Macedonia Not Entered Opstina Vevcani

Macedonia Not Entered Opstina Vinica

Macedonia Not Entered Opstina Vranestica

Macedonia Not Entered Opstina Zelino

Macedonia Not Entered Kozjak Dam

Results

Project Development Objective Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Vehicle operation costs on the roads improved Text Value 100% 90% for life cycle analysis. (it under the Project have decreased by at least is noted that the 10 percent. Supplemental Letter indicates 85%). Date 10-Apr-2008 19-Sep-2012 31-Jan-2013 Comments Measurement of the indicator will be carried out upon completion of all planned civil works on regional and local roads. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Approximately 330 km of Regional Roads Text Value 0 km About 330 km improved by the end of the project. Date 10-Apr-2008 19-Sep-2012 31-Jul-2013 Comments The total length of the 11 contracts for the regional roads is 284 km and planned road rehabilitation under this component is completed. Some regional roads included during preparation were dropped early during implementation at government request. Approximately 420 km of Local Roads Text Value 0 km 280 km 420 km improved by the end of the project. Date 10-Apr-2008 29-Jul-2012 31-Jul-2013 Comments Fifth tender awarded in August 2012. The FNRR has successfully managed and Text Value NA Yes implemented the investments under the Date 10-Apr-2008 29-Jul-2012 31-Jul-2013 Program. Regular Technical Audits have confirmed that road works comply with Comments Generally, ASR demonstrates Increase in ASR technical contractual specifications. good discharge of its staff level of ASR crucial to responsibilities. Increased ultimate achievement of this staffing needed for additional target. work load not to significantly affect ASR's project management capabilities. Public Disclosure Copy Roads rehabilitated, Non-rural Kilometers Value 0.00 564.00 704.00

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Date 29-Jun-2012 31-Jul-2013 Comments Not required at time of project Combines regional roads Initially 330 km of regional approval. Included completed (284km) and local roads but actual measured retroactively. roads completed (280km) contract km was 284 km hence real target is 704 km when local roads target of 420 km added.

Data on Financial Performance (as of 02-Apr-2013)

Financial Agreement(s) Key Dates

Public Disclosure Copy Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P107840 IBRD-75320 Effective 13-May-2008 21-Jul-2008 17-Oct-2008 31-Jul-2013 31-Jul-2013

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P107840 IBRD-75320 Effective USD 105.20 105.20 0.00 63.96 34.97 61.00

Disbursement Graph

Public Disclosure Copy Key Decisions Regarding Implementation Approval of the proposed restructuring package.

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Restructuring History Board/AOB Approval on 11-Jun-2013

Related Projects There are no related projects. Public Disclosure Copy Public Disclosure Copy

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