Document of The World Bank Public Disclosure Authorized Report No: ICR00003327 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-40830 TF-54399 TF-54400 TF-55065 TF-55922 TF-55924) ON A Public Disclosure Authorized CREDIT IN THE AMOUNT OF SDR 11.7 (US$17.50 MILLION EQUIVALENT) TO THE REPUBLIC OF ALBANIA FOR AN INTEGRATED COASTAL ZONE MANAGEMENT AND CLEAN-UP PROJECT Public Disclosure Authorized (P086807) April 27, 2016 Environment and Natural Resources Global Practice South East Europe Country Management Unit Europe and Central Asia Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective August 19, 2015) Currency Unit = Albanian Lek (ALL) 1.00 ALL= US$ 0.00816 US$ 1.00 = 126.15 ALL FISCAL YEAR Republic of Albania January 1 –December 31 World Bank July1 – June 30 ABBREVIATIONS AND ACRONYMS APL Adaptable program loan AMMP Aftercare Management and Maintenance Plan CAS World Bank Country Assistance Strategy CVCDP Coastal Village Conservation and Development Program CZMP Coastal Zone Management Plan EIA Environmental Impact Assessment EMP Environmental Management Plan ESSF Environmental and Social Safeguards Framework GoA Government of Albania GEF Global Environment Facility GEO Global Environmental Objective IBRD International Bank for Reconstruction and Development ICZM Integrated Coastal Zone Management ICZMCP Integrated Coastal Zone Management and Clean-up Project ICR Implementation Completion Report IP Inspection Panel IRR Internal rate of return ISR Implementation Status Report KfW KfW Development Bank MAP Management Action Plan MSP Medium Size Project M&E Monitoring and evaluation MoUDT Ministry of Urban Development and Tourism MoPWTT Ministry of Public Works, Transport and Telecommunications NPV Net present value PAD Project Appraisal Document PCU Project coordination unit PDO Project Development Objective R&F Roof & Façade (Program) RAP Resettlement Action Plan REA Regional Environmental Agency SCDP South Coastal Development Plan TA Technical assistance WWTP Wastewater treatment plant Vice President: Cyril Muller Country Director: Ellen Goldstein Senior Director: Paula Caballero Kulsum Ahmed Practice Manager: Adriana Damianova/ Project Team Leader: Drita Dade ICR Team Leader: Sanjay Srivastava ALBANIA Integrated Coastal Zone Management and Clean-up Project CONTENTS 1. Project Context, Development Objectives, and Design ............................................ 14 2. Key Factors Affecting Implementation and Outcomes ............................................ 28 3. Assessment of Outcomes .......................................................................................... 46 4. Assessment of Risk to Development Outcome ......................................................... 55 5. Assessment of Bank and Borrower Performance ..................................................... 57 6. Lessons Learned ........................................................................................................ 60 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners ........... 63 Annex 1. Original Indicators ............................................................................................. 64 Annex 2. Project Costs and Financing .............................................................................. 71 Annex 3. Outputs by Component...................................................................................... 72 Annex 4. Environment and Social Safeguards ................................................................. 79 Annex 5. Economic and Financial Analysis ..................................................................... 84 Annex 6. Bank Lending and Implementation Support/ Supervision Processes .............. 103 Annex 7. Beneficiary Survey Results ............................................................................. 105 Annex 8. Stakeholder Workshop Report and Results ..................................................... 118 Annex 9. Summary of Borrower's ICR and/or Comments on Draft ICR ....................... 120 Annex 10. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 121 Annex 11. Selected Supporting Documents ................................................................... 122 MAP NO. IBRD 33577R ................................................................................................ 124 MAP NO. IBRD 33742................................................................................................... 125 1 A. Basic Information Integrated Coastal Zone Country: Albania Project Name: Management & Clean- Up Project (APL #1) IDA-40830,TF- 54399,TF-54400,TF- Project ID: P086807 L/C/TF Number(s): 55065,TF-55922,TF- 55924 ICR Date: 10/09/2015 ICR Type: Intensive Learning ICR GOVERNMENT OF Lending Instrument: APL Borrower: ALBANIA Original Total XDR 11.70M Disbursed Amount: XDR 10.51M Commitment: Revised Amount: XDR 10.51M Environmental Category: F Implementing Agencies: Ministry of Urban Development Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 03/02/2004 Effectiveness: 11/29/2005 11/29/2005 03/22/2010 01/28/2011 Appraisal: 04/12/2005 Restructuring(s): 11/21/2012 06/13/2014 Approval: 06/21/2005 Mid-term Review: 10/15/2012 11/13/2012 Closing: 03/31/2010 03/31/2015 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Substantial Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory 2 C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Government: Moderately Satisfactory Unsatisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory 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 None time (Yes/No): Supervision (QSA): DO rating before Moderately Closing/Inactive status: Satisfactory D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) General public administration sector 15 5 General water, sanitation and flood protection sector 30 20 Other social services 10 15 Ports, waterways and shipping 15 30 Solid waste management 30 30 Theme Code (as % of total Bank financing) Environmental policies and institutions 14 20 Land administration and management 29 5 Municipal governance and institution building 14 15 Other environment and natural resources management 14 30 Pollution management and environmental health 29 30 3 E. Bank Staff Positions At ICR At Approval Vice President: Cyril E Muller Shigeo Katsu Country Director: Ellen A. Goldstein Orsalia Kalantzopoulos Practice Kulsum Ahmed Laura Tuck Manager/Manager: Project Team Leader: Adriana Jordanova Damianova Rita E. Cestti ICR Team Leader: Sanjay Srivastava ICR Primary Author: Sanjay Srivastava 4 F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document)1 The development objective of the Integrated Coastal Zone Management and Clean-up Project (ICZMCP-APL1) is to set-up and initiate an integrated coastal zone management approach to reduce coastal degradation through: (i) enhancing regulatory policy and governance of the coastal zone, land use and regional planning, and institutional capacity; (ii) initiating targeted municipal and community investments in the southern coast to improve environmental conditions, enhance cultural resources and encourage community support for sustainable coastal zone management; and (iii) reducing soil and groundwater contamination in the former chemical plant at Porto Romano. The project included funding support from the Global Environmental Facility (GEF) that had a Global Environmental Objective (GEO). The GEO of the Project is to assist Albania in meeting its international commitments to protect Butrint National Park under the Ramsar Convention on Protection of Wetlands and relates to the GEF Medium Size Project (MSP) that was fully blended with the ICZMCP. Revised Project Development Objectives (as approved by original approving authority) The revised development objective is to assist the Government of Albania in developing on a sustainable basis, tourism in South Albania coast, by improving critical public environmental infrastructure and municipal services, remediating and containing pollution hazards from the former chemical plant in Porto Romano in Durres, improving community infrastructure and enhancing architectural and cultural resources. The GEO remained the same at Project restructuring. (a) PDO Indicator(s) Restructured PDO Indicators (Original PDO and GEO indicators can be found in Annex 1) Formally Actual Value Achieved at Indicator Baseline Value Revised Target Completion or Target Years Values Increased % of population served by the newly built Landfill site and Transfer Station through establishment of infrastructure for safe disposal of Indicator 1 : municipal solid waste in the Southern Coast that meets EU standards through construction of a landfill in Bajkaj and transfer station in Himare built and operational 1 Please note that PDO formulation in the PAD differs from the one in the Financing Agreement. 5 Sanitary landfill