Document of The World Bank Public Disclosure Authorized Report No: ICR00003530 IMPLEMENTATION COMPLETION AND RESULTS REPORT (TF-12620 TF-91967 TF-91969) ON A GLOBAL ENVIRONMENT FACILITY TRUST FUND GRANT IN THE AMOUNT OF US$6.0 MILLION Public Disclosure Authorized TO BOSNIA AND HERZEGOVINA AND IN THE AMOUNT OF US$2.0 MILLION TO THE REPUBLIC OF CROATIA FOR NERETVA AND TREBISNJICA MANAGEMENT PROJECT Public Disclosure Authorized December 29, 2015 Public Disclosure Authorized Global Water Practice GWADR Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective 12/08/2015) Bosnia Herzegovina Currency Unit = BAM 1.00 = US$ 0.5525 US$ 1.00 = 1.81 BAM Croatia Currency Unit = HRK 1.00 = US$ 0.1416 US$ 1.00 = 7.06 HRK FISCAL YEAR 2016 ABBREVIATIONS AND ACRONYMS ADRICOSM Integrated Coastal Areas and River Basin Management System APL Adjustable Program Lending Bcm Billion Cubic Meters BEEPS Business Environment and Enterprise Performance Survey BiH Bosnia and Herzegovina BOD Biological Oxygen Demand BSAP Biodiversity Strategic Action Plan (Croatia) CARDS Community Assistance for Reconstruction, Development and Stabilization CAS Country Assistance Strategy CC Coordination Committee CFMS Country Financial Management Strategy CIS Common Implementation Strategy CPPR Country Project Portfolio Review CQS Consultants’ Qualifications Selection CSA National Capacity Self-Assessment DA Designated Accounts EA Environmental Assessment ECA Europe and Central Asia ECSEE Energy Community of South East Europe EIA Environmental Impact Assessment EMF Environmental Management Framework EMP Environmental Management Plan EU European Union EWS Early Warning System FAO Food and Agriculture Organization (UN) ii FBiH Federation of Bosnia and Herzegovina FBS Fixed Budget FM Financial Management FMA Financial Management Arrangements FMAWMF Federation Ministry of Agriculture, Water Management and Forestry FMET Federation Ministry of Environment and Tourism GDP Gross Domestic Product GEF Global Environment Facility GEF4 IW Global Environment Facility 4th Replenishment for the International Waters GIS Global Information System GNI Gross National Income GOC Government of Croatia GP Good Practice GWP Global Water Partnership Ha Hectare HPP Hydropower Plant HR Croatia HV Hrvatske Vode (Croatian Waters) IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICM Integrated Coastal Management IDA International Development Association IF Investment Fund IFR Interim Financial Report IMF International Monetary Fund ISA International Standards on Auditing ISWC Interstate Water Committee IUCN The World Conservation Union IW LEARN International Waters Learning Exchange and Resource Network (of the Global Environment Facility) IWRM Integrated Water Resources Management KEC Karst Ecosystem Conservation Kg Kilogram Km Kilometer Km2 Square Kilometer LCS Least-Cost Selection LME Large Marine Ecosystem M&E Monitoring and evaluation MAFRD Ministry of Agriculture, Fisheries and Rural Development MAFWM Ministry of Agriculture, Forestry and Water Management/RS MAP Mediterranean Action Plan MED TDA Transboundary Diagnostic Analysis for the Mediterranean Sea MFT State Ministry of Finance and Treasury/BiH MOC Ministry of Culture MOF Ministry of Finance MOFTER Ministry of Foreign Trade and Economic Relations/BiH MORDFWM Ministry of Regional Development, Forestry and Water Management MOU Memorandum of Understanding iii MSPCEE Ministry of Spatial Planning, Civil Engineering and Environment/RS NAP National Action Plan NCB National Competitive Bidding NEAP National Environmental Action Plan NGO Nongovernmental organization NTMP Neretva and Trebisnjica Management Project NTRB Neretva and Trebisnjica River Basin O&M Operation and Maintenance OM Operations Manual PAD Project Appraisal Document PDO Project Development Objective PEs Public Enterprises PEs Public Enterprises PEs Public Enterprises PFM Public Financial Management PFS Project Financial Statement PIT Project Implementation Team PIU Project Implementation Unit PMT Project Management Team PRSP Poverty Reduction Strategy Paper QCBS Quality and Cost-Based Selection RBMP River Basin Management Plan REA Rapid Economic Assessment REC Regional Environmental Center REReP Regional Environmental Reconstruction Program RFP Request for Proposal RS Republika Srpska SA Social Assessment SAP BIO Strategic Action Program for the Conservation of Mediterranean Marine and Coastal Biological Diversity SAP MED Strategic Action Program to Address Pollution from Land-Based Activities in the Mediterranean Region SBD Standard Bidding Document SC Steering Committee SEE Southeastern Europe SGP Small Grant Program SOE Statement of Expenditures SSCA Small Scale Community Agriculture Project TA Technical Assistance TAG Technical Advisory Group TDA-SAP Transboundary Diagnostic Analysis and a Strategic Action Program TORs Terms of Reference TTI Trade and Transport Integration Project TWG Technical Working Group UN United Nations UNEP United Nations Environment Program UNESCO United Nations Educational, Scientific and Cultural Organization UNIDO United Nations Industrial Development Organization WB World Bank iv WFD Water Framework Directive 2000/60/EC WIS Water Information System WQPP Water Quality Protection Project WSSD POI 2002 Johannesburg Political Declaration on Sustainable Development and Plan of Implementation of the World Summit on Sustainable Development WWF World Wide Fund WWT Wastewater Treatment WWTP Wastewater Treatment Plant Senior Global Practice Director: Junaid Kamal Ahmed Sector Manager: Steven N. Schonberger Project Team Leader: Mirjana Karahasanovic ICR Team Leader: Mirjana Karahasanovic ICR Primary Author Qun Li v BOSNIA AND HERZEGOVINA REPUBLIC OF CROATIA NERETVA AND TREBISNJICA MANAGEMENT PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Rating 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 1. Project Context, Global Environment Objectives and Design........................................ 1 2. Key Factors Affecting Implementation and Outcomes .................................................. 4 3. Assessment of Outcomes .............................................................................................. 12 4. Assessment of Risk to Development Outcome ............................................................. 21 5. Assessment of Bank and Borrower Performance ......................................................... 21 6. Lessons Learned............................................................................................................ 24 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners............... 25 Annex 1. Project Costs and Financing .............................................................................. 26 Annex 2. Outputs by Component...................................................................................... 28 Annex 3. Economic and Financial Analysis ..................................................................... 54 Annex 4. Bank Lending and Implementation Support/Supervision Processes ................. 69 Annex 5. Beneficiary Survey Results ............................................................................... 71 Annex 6. Stakeholder Workshop Report and Results ....................................................... 72 Annex 7. Summary of Borrowers’ ICR Reports and Comments on Draft ICR ............... 73 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ........................... 93 Annex 9. List of Supporting Documents .......................................................................... 94 Annex 10. Project Implementation Arrangements Chart .................................................. 95 Annex 11. Project Photos .................................................................................................. 96 MAP IBRD 35303 vi Data Sheet A. Basic Information Neretva and Trebisnjica South Eastern Europe River Basin Country: Project Name: and Balkans Management Project (BiH/Croatia) TF-12620,TF- Project ID: P084608 L/C/TF Number(s): 91967,TF-91969 ICR Date: 12/29/2015 ICR Type: Core ICR BIH AND REPUBLIC Lending Instrument: SIL Borrower: OF CROATIA Original Total USD 18.43M Disbursed Amount: USD 10.40M Commitment: Revised Amount: USD 10.07M Environmental Category: B Global Focal Area: M Implementing Agencies: FBiH Ministry of Environment and Tourism FBiH Ministry of Agriculture, Water Management and Forestry RS Ministry of Agriculture, Forestry and Water Management Ministry of Agriculture Ministry of Environment and Nature Protection RS Ministry of Spatial Planning, Civil Engineering and Ecology Ministry of Foreign Trade and Economic Relations of BiH Cofinanciers and Other External Partners: Delegation to the European Union to Bosnia and Herzegovina B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 04/19/2004 Effectiveness: 01/07/2009 03/06/2009 Appraisal: 12/04/2006 Restructuring(s): Approval: 05/29/2008 Mid-term Review: 10/24/2011 10/24/2011 Closing: 12/31/2013 06/30/2015 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Global Environment Outcome Moderate Bank Performance: Moderately Satisfactory vii Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory