The World Bank Report No: ISR15972 Implementation Status & Results Croatia Rijeka Gateway II (P102365) Public Disclosure Copy Operation Name: Rijeka Gateway II (P102365) Project Stage: Implementation Seq.No: 13 Status: ARCHIVED Archive Date: 01-Nov-2014 Country: Croatia Approval FY: 2009 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 11-Dec-2008 Original Closing Date 15-Dec-2014 Planned Mid Term Review Date 15-Dec-2011 Last Archived ISR Date 13-Apr-2014 Effectiveness Date 14-Jul-2009 Revised Closing Date 15-Jun-2017 Actual Mid Term Review Date 15-Dec-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall project development objective is to develop the capacity, financial performance, and quality of services in the port ofRijeka to meet growing traffic demand, through public-private partnerships, while facilitating urban renewal by enabling therelocation of port activities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Port Terminal Development 150.70 Port Service Enhancement 8.10 Project Implementation (including front end fee and interests) 6.20 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview A level 2 project restructuring was approved during the previous ISR period on January 29, 2014. The purpose of the restructuring was to extend the project closing date by 30 months to enable the completion of the main infrastructure to be managed by a private operator, change disbursement percentages to factor in the applicability of VAT to project expenditures following Croatia’s EU accession, and modify target values of several Project Development Objectives indicators in view of a negative economic circumstances and extended timeline of the project. Page 1 of 5 The World Bank Report No: ISR15972 Port Construction The Brajdica Container Terminal (BCT) was completed and made operational in July 2013. The container terminal capacity was doubled to 400,000 TEUs by increasing the quay length by additional 320m, while the depth alongside the new quay is in excess of 14m that allows berthing of some of the largest container vessels in the Mediterranean. The expansion brought around US$70 million USD of private financing between the purchase of the company and the investment in the terminal, which exceeds the project target in terms Public Disclosure Copy of private investment in the port area. The terminal operations led by its major shareholder, ICTSI, have significantly contributed to increased productivity and development of container activities. The detailed design phase of the Zagreb Container Terminal (ZCT) design and build is completed, construction permit has been issued and civil works are starting. The selection process for the concessionaire of the ZCT has been postponed to December 2014 given the changes in the shipping market. Urban development of the port area is still advancing slowly. The launch of the tenders for developers for the area could not be held at end of the first semester of 2014. Uncertainties related to the modification of the maritime law still prevents the start of the process. If the revision of the law is held up until the end of 2014 the stakeholders should go for a process corresponding to the current legal framework. Locations Country First Administrative Division Location Planned Actual Croatia Not Entered Rijecka Luka Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased Rijeka port container capacity Text Value 150 400 750 (kTEU) Date 31-Dec-2007 31-Dec-2013 15-Jun-2017 Comments The closing date and end target have changed due to project restructuring approved in January 2014. Increased container traffic (kTEU) Text Value 145 170 300 Date 31-Dec-2007 31-Dec-2013 15-Jun-2017 Public Disclosure Copy Comments The end target and the closing date have changed due to project restructuring approved in January 2014. Improved PRA operating ratio: ratio of Text Value 153% 99% 120% operating expenses to total operating revenue Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments partially explained by the fixed The end target and the concession revenue due in closing date have changed the first few months of the due to project restructuring year. approved in January 2014. Page 2 of 5 The World Bank Report No: ISR15972 Reduced subsidies for interest as percentage Text Value 46% 3% 10% of operating revenues Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments The indicator decreased to 3 The closing date has changed Public Disclosure Copy percent in 2013 and is due to project restructuring expected to drop by an approved in January 2014. additional percentage point in 2014 in view of a very low interest expense for the World Bank loans and the cancellation of government support for interest on the EDCF loan. Increased container terminal efficiency (move Text Value 18 22 22 per crane per hour) Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments The end project target is The closing date changed due already met. to project restructuring approved in January 2014. Private Sector investments (USD million) Text Value 0 70 25 Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments target largely exceeded The closing date has changed due to project restructuring approved in January 2014. Portion of dry cargo port activities carried out Text Value 29% 38% 65% by operators with a private majority ownership Date 31-Dec-2007 31-Dec-2013 15-Jun-2017 Comments The target has changed because the current economic environment is less favorable to privatization than the one prevailing at project preparation in 2007-2008 (just prior to the beginning of the Public Disclosure Copy economic crisis). Redevelopment of urban area (ha) Text Value 0 0 7 Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments consistent with target (result The closing date has changed expected by end of project). due to project restructuring approved in January 2014. Intermediate Results Indicators Page 3 of 5 The World Bank Report No: ISR15972 Indicator Name Core Unit of Measure Baseline Current End Target Port Terminal Development Component. Text Value 0% 100% 100% Construction of Brajdica Container Terminal Date 31-Dec-2007 31-Dec-2013 15-Jun-2017 Public Disclosure Copy extension completed (2011) Comments Brajdica inauguration was in Brajdica inauguration was in July 2013. July 2013. Construction of Zagreb Terminal infrastructure Text Value 0% 0% 100% completed (2014) Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments Main design completed. The closing date has changed due to project restructuring approved in January 2014. Area for urban redevelopment available ( at Text Value 0 ha 0 ha 7 ha least 7 ha) (2012) Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments architectural contest The closing date has changed completed and awarded to due to project restructuring the 3 first prizes. approved in January 2014. Selection of a private developer to redevelop Text Value not done 0% 100% the Delta/Port of Baross area (Sep 2010) Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments Bid documents on hold given The closing date has changed legal uncertainties. due to project restructuring approved in January 2014. Signed concession agreements for at least two Text Value 0 1 2 agreements based on cost port terminals (2011) recovery principles Date 31-Dec-2007 30-Jun-2014 15-Jun-2017 Comments Concession for Brajdica The closing date has changed Container Terminal signed. due to project restructuring Invitation to the bidders for approved in January 2014. ZCT issued on October 31, 2013. Development of port environmental protection Text Value not available In place In place Public Disclosure Copy plan (2010) Date 31-Dec-2007 31-Dec-2013 15-Jun-2017 Comments completed The closing date has changed due to project restructuring approved in January 2014. Quality supervision of works Text Value continuous satisfactory satisfactory Date 31-Dec-2008 31-Dec-2013 15-Jun-2017 Comments Supervision carried out The closing date has changed properly by internationally due to project restructuring recognized consultants. approved in January 2014. Page 4 of 5 The World Bank Report No: ISR15972 Data on Financial Performance (as of 15-Jul-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P102365 IBRD-76380 Effective 11-Dec-2008 17-Apr-2009 14-Jul-2009 15-Dec-2014 15-Jun-2017 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102365 IBRD-76380 Effective USD 122.50 122.50 0.00 17.29 103.44 14.00 Disbursement Graph Key Decisions Regarding Implementation Public Disclosure Copy N/A Restructuring History Level 2 RVP Decision on 29-Jan-2014 Related Projects There are no related projects. Page 5 of 5