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Document of The World Bank Public Disclosure Authorized Report No: 72287-YF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF EUR73.8 MILLION (US$100 MILLION EQUIVALENT) TO THE REPUBLIC OF SERBIA FOR THE SERBIA ROAD REHABILITATION AND SAFETY PROJECT March 29, 2013 Public Disclosure Authorized Transport Sector Unit Sustainable Development Department Europe and Central Asia Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2013) Currency Unit = Euro Serbian Dinar 1.00 = Euro 0.009 US$1.00 = Euro 0.738 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AADT Average Annual Daily Traffic NBS National Bank of Serbia ARAPs Abbreviated Resettlement Action NRNRP National Road Network Plans Rehabilitation Program Bank World Bank (IBRD) NRTSC National Road Traffic Safety CoS Corridors of Serbia Coordination Body CPS Country Partnership Strategy NCP National Competitive Bidding CXHP Corridor X Highway Project NPV Net Present Value DLI Disbursement-Linked Indicators ORAF Operational Risk Assessment EBRD European Bank for Reconstruction Framework and Development P4R Program for Results EC European Commission PAC Project Audit Consultant ECA Europe and Central Asia PAD Project Appraisal Document EIB European Investment Bank PAPs Project Affected Peoples EIRR Economic Internal Rate of Return PBMC Performance-Based Maintenance EMF Environmental Management Contract Framework PDO Project Development Objectives EMP Environmental Management Plan PERS Public Enterprise for State Road EU European Union Management (Public Enterprise GCR Global Competitiveness Report Roads of Serbia) GDP Gross Domestic Product PIT Project Implementation Team GoS Government of Serbia PMIS Pavement Management and HDM4 Highway Development and Information Systems Management Model POM Project Operation Manual HIMS Highway Information Management QBS Quality Based Selection System RAP Resettlement Action Plan IAASB International Auditing and RoS Republic of Serbia Assurance Standards Board RPF Resettlement Policy Framework IBRD International Bank for RRSP Road Rehabilitation and Safety Reconstruction and Development Project ICB International Competitive Bidding RSD Serbian Dinar IFC International Finance Corporation RSL Road Safety Law IFIs International Financial Institutions RTSA Road Traffic Safety Agency IFRs Interim Financial Reports SAI Supreme Audit Institution TEN-T Trans European Transport Network SEETO South East Europe Transport IMF International Monetary Fund Observatory IPA Instrument for Pre-accession SIL Specific Investment Loan Assistance SNRA Swedish (National) Road IPSAS International Public Sector Administration Accounting Standards SRD Serbian Road Directorate IRI International Roughness Index TOR Terms of Reference MolE Ministry of Infrastructure and TRP Transport Rehabilitation Project Energy USD United States Dollars MoCI Ministry of Capital Investments WB World Bank MoFE Ministry of Finance and Economy WHO World Health Organization MoT Ministry of Transport Regional Vice President: Philippe H. Le Hou6rou, ECAVP Country Director: Ellen A. Goldstein, ECCU4 Sector Director: Laszlo Lovei, ECSSD Sector Manager: Juan Gaviria, ECSTR Task Team Leader: Moustafa Baher El-Hefnawy, ECSTR SERBIA SERBIA ROAD REHABILITATION AND SAFETY PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT ................................................................................................. 1 A. Country Context ......................................................... 1 B. Sectoral and Institutional Context. ....................................... 1 C. Higher Level Objectives to which the Project Contributes ................... 4 II. PROJECT DEVELOPMENT OBJECTIVES ........................................................... 5 A. PDO........................................................ 5 B. Project Beneficiaries ..................................... ........ 5 C. PDO Level Results Indicators......................5.... ............ 5 III. PROJECT DESCRIPTION ......................................................................................... 6 A. Project Components ..................................... ........ 6 B. Project Financing .......................................... ..... 8 C. Program Objective and Phases....................9..... ............. 9 D. Lessons Learned and Reflected in the Project Design..................... 10 IV . IM PLEM ENTATION ..................................................................................................... 11 A. Institutional and Implementation Arrangements ................ ............. 11 B. Results Monitoring and Evaluation .................................. 13 C. Sustainability................... ............................. 14 V. KEY RISKS AND MITIGATION MEASURES......................................................15 A. Risk Ratings Summary Table ...................................... 15 B. Overall Risk Rating Explanation .................................... 15 VI. APPRAISAL SUMMARY ......................................................................................... 15 A. Economic and Financial Analyses .......................... ......... 15 B. Technical .................................................... 16 C. Financial Management............................................ 16 D. Procurement ......................................... ......... 17 E. Social (including Safeguards) ...................................... 17 F. Environment (including Safeguards) ................................. 19 G. Other Safeguards Policies Triggered (if required) ........................... 20 ANNEX 1: RESULTS FRAMEWORK AND MONITORING.........................................21 ANNEX 2: DETAILED PROJECT DESCRIPTION.........................................................35 ANNEX 3: IMPLEMENTATION ARRANGEMENTS .................................................... 44 ANNEX 4: OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF)..............65 ANNEX 5: IMPLEMENTATION SUPPORT PLAN ......................................................... 71 ANNEX 6: ECONOMIC AND FINANCIAL ANALYSIS..................................................74 PAD DATA SHEET Serbia ROAD REHABILITATION AND SAFETY PROJECT (P127876) PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSTR Report No.: PAD352 Basic Information Project ID Lending Instrument EA Category Team Leader P127876 Specific Investment B - Partial Assessment Moustafa Baher El- Loan Hefnawy Project Implementation Start Date Project Implementation End Date 26-Apr-2013 30-Apr-2018 Expected Effectiveness Date Expected Closing Date 01-Nov-2013 31-Oct-2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Juan Gaviria Laszlo Lovei Ellen A. Goldstein Philippe H. Le Houerou Borrower: Republic of Serbia Responsible Agency: Public Enterprise for State Road Management (Public Enterprise Roads of Serbia) Contact: Mr. Zoran Drobnjak Title: Director Telephone 381113040701 Email: [email protected] No.: Project Financing Data(US$M) [X] Loan [ ] Grant [ ] Other ] Credit [ ] Guarantee For Loans/Credits/Others Total Project Cost (US$M): 393.01 Total Bank Financing 100.00 (US$M): Financing Source Amount(US$M) Borrower 157.48 International Bank for Reconstruction and 100.00 1 Development EC European Investment Bank 135.53 Total 393.01 Expected Disbursements (in USD Million) Fiscal 2013 2014 2015 2016 2017 2018 2019 0000 0000 Year Annual 0.00 4.00 25.00 24.00 21.00 15.00 11.00 0.00 0.00 Cumulati 0.00 4.00 29.00 53.00 74.00 89.00 100.00 0.00 0.00 ve Project Development Objective(s) The proposed PDO is to improve the condition and safety of the National Road Network for road users by supporting the Republic of Serbia in the implementation of the first phase of its National Road Network Rehabilitation Program. Components Component Name Cost (USD Millions) Road Rehabilitation and Safety Investments (264 million 357.72 Euros) Institutional Strengthening (3.10 million Euros) 4.20 Project Detailed Design, Project Supervision, Management, 25.56 Monitoring and Audits (18.86 million Euros) Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [X] respects? Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ ] Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ] Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X 11 Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X Legal Covenants Name Recurrent Due Date Frequency Description of Covenant Conditions Name Type Subsidiary Agreement has been executed Effectiveness Description of Condition The Subsidiary Agreement has been executed on behalf of the Borrower and the Project Implementing Entity Name Type Co-financing Agreement has been executed and delivered Effectiveness Description
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