Document of The World Bank Public Disclosure Authorized Report No: ICR1969 IMPLEMENTATION COMPLETION AND RESULTS REPORT (TF-94952) ON A Public Disclosure Authorized GRANT IN THE AMOUNT OF 12.5 MILLION EURO TO THE REPUBLIC OF MOLDOVA FOR A Public Disclosure Authorized MOLDOVA REGIONAL DEVELOPMENT PROJECT September 16, 2013 Public Disclosure Authorized Sustainable Development Department Ukraine, Belarus and Moldova Country Unit Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective August 1, 2013) Currency Unit = Moldova Leu 1.00 = US$ 0.0809 US$ 1.00 = MDL 11.90 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AA Administrative Agreement AM Apele Moldovei CAS Country Assistance Strategy CDD Community Driven Development CPS Country Partnership Strategy CW Constructed Wetlands EC European Commission EIA Environmental Impact Assessment EMP Environmental Management Plan EU- NIF European Union Neighborhood Investment Facility Grant FSU Former Soviet Union GA Grant Agreement GEF Global Environmental Facility ICB International Competitive Bidding MRTI Ministry of Transport and Road Industry MSIF Moldova Social Investment Fund MTRI Ministry of Transport and Road Industry NDS National Development Strategy NEF National Ecological Fund NWSSP National Water Supply and Sanitation Program O&M Operation and Maintenance OM Operational Manual PIU Project Implementation Unit RSPS Moldova Road Sector Program Support SEA Sector Environmental Assessment SRA State Road Administration TFO Trust Fund Operational VOC Vehicle Operating Costs WWTP Wastewater Treatment Plant Vice President: Laura Tuck (Acting) Country Director: Qimiao Fan Sector Manager: Sumila Gulyani Project Team Leader: Ronnie W. Hammad ICR Team Leader: Paula Restrepo REPUBLIC OF MOLDOVA MOLDOVA REGIONAL DEVELOPMENT 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 Project Background ......................................................................................................... 1 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 7 3. Assessment of Outcomes .......................................................................................... 12 4. Assessment of Risk to Development Outcome ......................................................... 16 5. Assessment of Bank and Borrower Performance ..................................................... 17 6. Lessons Learned ....................................................................................................... 19 7. Comments on Issues Raised by Grantee/Implementing Agencies/Donors .............. 20 Annex 1. Project Costs and Financing .......................................................................... 21 Annex 2. Outputs by Component ................................................................................. 22 Annex 3. Results Framework ........................................................................................ 26 Annex 4. Economic and Financial Analysis ................................................................. 27 Annex 5. Grant Preparation and Implementation Support/Supervision Processes ....... 30 Annex 6. Beneficiary Survey Results ........................................................................... 32 Annex 7. Stakeholder Workshop Report and Results ................................................... 35 Annex 8. Summary of Grantee's ICR and/or Comments on Draft ICR ........................ 36 Annex 9. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 45 Annex 10. List of Supporting Documents .................................................................... 46 MAP .............................................................................................................................. 47 A. Basic Information MOLDOVA Country: Moldova Project Name: REGIONAL DEVELOPMENT Project ID: P118405 L/C/TF Number(s): TF-94952 ICR Date: 08/30/2013 ICR Type: Core ICR REPUBLIC OF Lending Instrument: SIL Grantee: MOLDOVA Original Total USD 16.67M Disbursed Amount: USD 15.75M Commitment: Revised Amount: USD 15.41M Environmental Category: C Implementing Agencies: State Road Administration Moldova Social Investment Fund (MSIF) PIU under the Ministry of Environment Cofinanciers and Other External Partners: European Commission (EC) B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 07/11/2008 Effectiveness: 08/07/2009 05/30/2011 Appraisal: Restructuring(s): 09/30/2011 09/30/2012 Approval: 07/31/2009 Mid-term Review: 10/15/2010 Closing: 06/30/2011 11/16/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Grantee Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Government: Moderately Satisfactory Unsatisfactory Moderately Implementing Quality of Supervision: Moderately Satisfactory Unsatisfactory Agency/Agencies: Overall Bank Moderately Overall Borrower Moderately Satisfactory Performance: Unsatisfactory Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No 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) Other social services 30 30 Roads and highways 20 20 Solid waste management 30 30 Water supply 20 20 Theme Code (as % of total Bank financing) Other environment and natural resources management 30 30 Regional integration 20 20 Social safety nets 30 30 Water resource management 20 20 E. Bank Staff Positions At ICR At Approval Vice President: Laura Tuck (Acting) Philippe H. Le Houerou Country Director: Qimiao Fan Martin Raiser Sector Manager: Sumila Gulyani Wael Zakout Project Team Leader: Ronnie W. Hammad Ross S. Pavis ICR Team Leader: Paula Restrepo Cadavid ICR Primary Author: Paula Restrepo Cadavid F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objective of the project was to reduce economic and social disparities among regions through the following: (i) By improving social services at the local and community level to provide better assistance to the vulnerable, especially the disabled, elderly, children and the poor; (ii) By improving water management at the community level so as to increase the supply of potable water, construct and rehabilitate small-scale irrigation systems, and adequately equip water accumulation facilities; (iii) By lowering road transport costs for road-users in Moldova, and providing better access to services by improving the condition and quality of its road network; and (iv) By improving the quality of sanitary services in Orhei. Revised Project Development Objectives (as approved by original approving authority) Not revised. (a) PDO Indicator(s) Original Target Formally Actual Value Baseline Values (from Revised Achieved at Indicator Value approval Target Completion or documents) Values Target Years Number of people with access to community centers rehabilitated or Indicator 1 : constructed under the project Value quantitative or NA 1450 1500 Qualitative) Date achieved 08/30/2009 09/16/2013 Comments (incl. % Daily capacity of community centers constructed or rehabilitated achievement) under the project. Target was exceeded. Increased number of persons with access to potable water as a result Indicator 2 : of small water works financed under the project. Value quantitative or 0 17000 34,500 Qualitative) Date achieved 08/30/2009 09/16/2013 Comments (incl. % Target was exceeded. achievement) Indicator 3 : Roads rehabilitated (km) Value quantitative or 0 4.8 4.8 Qualitative) Date achieved 08/30/2009 09/16/2013 Comments (incl. % 4.8 km of the Balti – Sarateni road were rehabilitated and the target achievement) was met. Increased percentage of Orhei's total wastewater discharge that is Indicator 4 : treated by the new WWTP Value quantitative or 0 90 0 Qualitative) Date achieved 08/30/2009 09/16/2013 The new WWTP has been completed and is expected to start treating Comments (incl. % wastewater by end-September 2013. Target will be met eventually as achievement) the new plant replaces the existing, yet dilapidated plant. (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Baseline Values (from Achieved at Indicator Revised Value approval Completion or Target Values documents) Target Years Indicator 1 : Number of rehabilitated / constructed community centers Value 0 30 30 (quantitative or Qualitative) Date achieved 08/30/2009 09/16/2013 Comments Number of community centers rehabilitated or constructed by the (incl. % achievement) project. Target has been met. Indicator 2 : Number of small water works completed Value (quantitative 0 29 43 or Qualitative) Date achieved 08/30/2009 09/16/2013 Comments (incl. % A total of 43 small water works were completed. Target was achievement) exceeded.