Document of The World Bank Public Disclosure Authorized Report No: ICR287 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-48650) ON A LOAN Public Disclosure Authorized IN THE AMOUNT OF EURO 90.0 MILLION (US$ 122.5 MILLION EQUIVALENT) TO THE REPUBLIC OF BULGARIA FOR A ROAD INFRASTRUCTURE REHABILITATION PROJECT Public Disclosure Authorized December 16, 2013 Sustainable Development Department Public Disclosure Authorized Central Europe and the Baltic Countries Europe and Central Asia CURRENCY EQUIVALENTS (Exchange Rate Effective July 29th, 2013) Currency Unit = Bulgarian Lev (BGN) BGN 1.47761 = US$ 1 US$ 0.676782 = BGN 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADT Annual Daily Traffic CBA Cost-Benefit Analysis CPS Country Partnership Strategy EIRR Economic Internal Rate of Return EMP Environmental Management Plan EU European Union HDM-4 Highway Development and Management Model ICR Implementation Completion Report IRI International Roughness Index ISR Implementation Status Report JASPERS Joint Assistance to Support Projects in European Regions MRD Ministry of Regional Development MS Moderately Satisfactory MU Moderately Unsatisfactory OPRD Operational Program for Regional Development OPT Operational Program for Transport PAD Project Appraisal Document PBC Performance Based Contracts PDO Project Development Objective RIA Road Infrastructure Agency RMS Road Management System SIL Special Investment Loan TEN-T Trans European Network - Transport VOC Vehicle Operating Cost Vice President: Laura Tuck, ECA VP Country Director: Mamta Murthi, ECCU5 Sector Manager: Juan Gaviria, ECSTR Project Team Leader: Orlin M. Dikov, ECSTR ICR Team Leader: Rakesh Tripathi, ECSTR COUNTRY Bulgaria Project Name Road Infrastructure Rehabilitation 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 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 5 3. Assessment of Outcomes .......................................................................................... 11 4. Assessment of Risk to Development Outcome ......................................................... 14 5. Assessment of Bank and Borrower Performance ..................................................... 16 6. Lessons Learned ....................................................................................................... 17 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 18 Annex 1. Project Costs and Financing .......................................................................... 19 Annex 2. Outputs by Component ................................................................................. 20 Annex 3. Economic and Financial Analysis ................................................................. 22 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 26 Annex 5. Beneficiary Survey Results ........................................................................... 27 Annex 6. Stakeholder Workshop Report and Results ................................................... 28 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 29 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ....................... 46 Annex 9. List of Supporting Documents ...................................................................... 47 MAP A. Basic Information Road Infrastructure Country: Bulgaria Project Name: Rehabilitation Project Project ID: P099894 L/C/TF Number(s): IBRD-48650 ICR Date: 08/22/2013 ICR Type: Core ICR Lending Instrument: SIL Borrower: The Republic of Bulgaria Original Total USD 122.50M Disbursed Amount: USD 103.38M Commitment: Revised Amount: USD 122.50M Environmental Category: B Implementing Agencies: Road Infrastructure Agency Co-financiers and Other External Partners: None B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 06/29/2006 Effectiveness: 12/13/2007 12/13/2007 Appraisal: 12/20/2006 Restructuring(s): 03/31/2011 Approval: 06/26/2007 Mid-term Review: 06/01/2009 10/12/2009 Closing: 06/30/2011 06/30/2013 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Not Applicable Implementing Quality of Supervision: Satisfactory Not Applicable Agency/Agencies: Overall Bank Overall Borrower Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project at No Quality at Entry (QEA): None any time (Yes/No): Problem Project at any time Quality of Supervision Yes None (Yes/No): (QSA): DO rating before Moderately Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 4 10 Rural and Inter-Urban Roads and Highways 96 90 Theme Code (as % of total Bank financing) Administrative and civil service reform 13 13 Infrastructure services for private sector development 25 25 Injuries and non-communicable diseases 24 24 Regional integration 13 13 Trade facilitation and market access 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Laura Tuck Shigeo Katsu Country Director: Mamta Murthi Anand K. Seth Sector Manager: Juan Gaviria Motoo Konishi Project Team Leader: Orlin M. Dikov Mohammed Dalil Essakali ICR Team Leader: Rakesh Tripathi ICR Primary Author: Rakesh Tripathi ICR Co-author Michael Butler F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective of the proposed project would be to assist Bulgaria to reduce road transport costs by improving the condition and quality of its roads network during the first years of EU accession. Revised Project Development Objectives (as approved by original approving authority) No Change (a) PDO Indicator(s) Revised / New Actual Value Original Target Indicator Baseline Value Target Values Achieved at Values (PAD) (Restructuring) Completion Percentage of improved Class I roads initially in poor condition, measured in IRI Indicator 1 : (International Roughness Index) cumulative values Value quantitative or 0 6.0% 3.6% 3.6% Qualitative) Date 05/31/2007 05/31/2007 03/31/2011 06/30/2013 Comments (incl. % Successfully achieved. Formally revised target reduced as a result of restructuring. achievement) Percentage of improved Class II roads initially in poor condition, measured in IRI Indicator 2 : (International Roughness Index) cumulative values Value quantitative or 0 3.0% 3.2% 3.2% Qualitative) Date 05/31/2007 05/31/2007 03/31/2011 06/30/2013 Comments (incl. % Successfully achieved. Formally revised target reduced as a result of restructuring. achievement) Percentage of improved Class III roads initially in poor condition, measured in IRI Indicator 3 : (International Roughness Index) cumulative values Value quantitative or 0 1.0% 0.5% 0.5% Qualitative) Date 05/31/2007 05/31/2007 03/31/2011 06/30/2013 Comments (incl. % Successfully achieved. Formally revised target reduced as a result of restructuring. achievement) Vehicle Operating Cost (VOC) on roads to be rehabilitated under the Project Indicator 4 : (Average, 2005 EUR per vehicle-kilometer) Value quantitative or 0.250 0.225 - 0.225 Qualitative) Date 05/31/2007 05/31/2007 - 06/30/2013 Comments (incl. % Target achieved on all completed roads sections under the Project achievement) (b) Intermediate Outcome Indicator(s) Revised / New Actual Value Original Target Indicator Baseline Value Target Values Achieved at Values (PAD) (Restructuring) Completion Indicator 1 : Consultant Services for Project Management support for operational programs Value 260 cumulative 0 cumulative staff- (quantitative 0 staff-months - staff-months months or Qualitative) Date 03/31/2011 - 03/31/2011 06/30/2013 Comments (incl. % This activity was canceled because the consultancy services were carried out in-house by achievement) JASPERS. (JASPERS services are free to the Govt., hence it was an economic decision) Indicator 2 : Consultant and advisory services for road sector management Value 24 cumulative 18 cumulative staff- quantitative or 0 staff-months - staff-months months Qualitative) Date 03/31/2011 - 03/31/2011 06/30/2013 This activity was partially achieved through the 18 month contract of the Highway Comments (incl. % Advisor procured under this Project. It should be noted additional advisory services were achievement) carried out in-house by RIA’s local consultant. Indicator 3 : Project management manuals reviewed, finalized and in use Value quantitative or No - Yes No Qualitative) Date 03/31/2011 - 03/31/2011 06/30/2013 Comments (incl. % This was completed with RIA’s own funds under an in-house consultancy contract. achievement) Studies on institutional set up, human resources and development of competencies in Indicator 4 : the sector carried out Value quantitative or No - Yes No Qualitative) Date 03/31/2011 - 03/31/2011