The World Bank Report No: ISR7019 Implementation Status & Results Albania Business Environment Reform and Institutional Strengthening (P096643) Public Disclosure Copy Operation Name: Business Environment Reform and Institutional Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 17-Jan-2012 Strengthening (P096643) Country: Albania Approval FY: 2007 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Economy, Trade and Energy Key Dates Board Approval Date 26-Oct-2006 Original Closing Date 15-Jan-2011 Planned Mid Term Review Date 23-Mar-2009 Last Archived ISR Date 17-Jan-2012 Effectiveness Date 01-Mar-2007 Revised Closing Date 30-Jun-2012 Actual Mid Term Review Date 21-Apr-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall objective of the BERIS is to assist the Government to: (i) facilitate business entry and operations in the formal economy; and (ii) strengthen the enterprise sector's capability to increase exports towards the region and EU markets. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Facilitating Business Entry and Operations 1.77 Strengthening the enterprise sector's capability to export 5.67 Project Coordination Support 0.24 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The project, throughout its life, has been and still is very relevant to the Government's efforts to advance EU accession and improve the investment climate in Albania. The project has achieved the end-of-project targets (most of it) by the closing date (by the completion of the Implementation Completion and Results Report, the team will be in the position to provide accurate data). The most important achievement relates to the construction of a completely new and modern metrology laboratory, furnishing it with some of the most modern and sophisticated equipment. It is expected to become fully operational in September, after allowing necessary time for the staff to reallocate from the old building to the new one, Page 1 of 8 The World Bank Report No: ISR7019 creating thus the environment for providing EU standards in testing, measurement and calibration. The beneficiary agency - the General Department of Metrology - expects to meet the performance targets for use of calibration services by the business sector and the number of kind of measurements that it is able to provide based on new equipment provided so far under the project and partly under EU IPA funds (Instrument for Pre-Accession Assistance) by June 30, 2012. Due to the fact that some of the equipment have been bought and used in the existing laboratory building the indicator improvement has been gradual and the businesses have benefited from the project results over a period of 2 years). Significant Public Disclosure Copy progress has been made in the Inspection reform. With the support of the project the government has a new law on inspection, an established General Inspectorate, and a fully staffed institution. It is highly likely that the project will achieve its objective - the reduction of the number of inspectorates - by June 30, 2012 based on the expected approval of the secondary legislation by the Council of Ministers. The project was responsible for completing the legal and institutional framework of this reform. Looking at how the reform has worked so far, no issues are anticipated issue with meeting of this objective.The project has facilitated stronger Government's mechanisms and policies for systematically assessing and improving the business environment by establishing the Regulatory Impact Assessment (RIA) system. Furthemore, while the project helped design and establish the RIA system in Albania, the further delay in adoption of the Decree instituting the RIA in Albania is undermining the satisfactory results achieved under the first component of project. Even though this is not an outcome indicator, the approval of this Decree within the life of the project would be very good in strengthening the project outcomes.The project has also enhanced and created capacity of the metrology, standards, testing and quality system to deliver EU compatible MSTQ services to meet business sector needs. Staff have been trained for the inspection, RIA, metrology, standards and accreditation. Locations Country First Administrative Division Location Planned Actual Albania Not Entered Tirana Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Business satisfaction with quality of regulation Number Value 3.30 0.00 2.50 Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments The ultimate outcome of the Whereby 1 is very satisfied... project work (licensing, 6 is very dissatisfied. inspection, RIA reform) in the business regulation was to be assessed based on a small business survey, a public administration survey and Public Disclosure Copy self-assessment. The data is not available at the time of writing thisISR due to [why not?]. The data is supposed to be available in [when]. Other evidence - Doing Business, USAID reports - show that businesses are more satisfied with quality of regulation. For example, [give examples/proxies]. Page 2 of 8 The World Bank Report No: ISR7019 % of Senior manager time dealing with state Percentage Value 16.10 0.00 13.00 administration Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments The ultimate outcome of the Public Disclosure Copy project work (licensing, inspection, RIA reform) in the business regulation was to be assessed based on a small business survey, a public administration survey and self-assessment. The data will be available in July 2012. Other evidence - Doing Business, USAID reports - show that senior management is dealing less with state administration. [EVIS PLS PROVIDE SPECIFIC EXAMPLES Number of inspection agencies Number Value 33.00 33.00 20.00 Date 31-Dec-2010 01-Jun-2012 30-Jun-2012 Comments The number of agencies will The target is <20. go down to 11 upon the expected approval of all the amendments by the Council of Ministers by June 30, 2012. [EVIS PROVIDE LIKELIHOOD, ANY RISKS?] Use of MSTQ services, measured as number Number Value 26.00 300.00 400.00 of calibration services provided Date 31-Dec-2006 30-Apr-2012 30-Jun-2012 Comments Year-to-date data The GDM has increased the The original YTD target was number of calibration services increased from 650 to 800 to businesses on a yearly based on more accurate Public Disclosure Copy basis from 2006 (26) until now estimates of how performance (300 at the end of April 2012) will improve based on based on the equipment equipment bought on project bought, capacity building and andEU IPA funds, as well as awareness raising efforts capacity building efforts. The financed by the project. This new mid-year target is thus indicatoris a proxy for 400. measuring the increase of the business sector's capacity for exports. The GDM expects to Page 3 of 8 The World Bank Report No: ISR7019 fully meet the target at project closure. Intermediate Results Indicators Public Disclosure Copy Public Disclosure Copy Page 4 of 8 The World Bank Report No: ISR7019 Indicator Name Core Unit of Measure Baseline Current End Target Number of Government officials trained in RIA Number Value 0.00 42.00 90.00 and other regulatory review techniques Date 31-Dec-2006 28-May-2012 30-Jun-2012 Public Disclosure Copy Comments Cumulative The component indicator has Cumulative not been fully met at the time of writing this ISR due to pending adoption of Decree instituting the RIA. The targeted training included systematic training of Government officials in RIA techniques by trained METE staff that METE was to organize on its own funds upon the adoption of the Decree. At the same time, besides the 42 officials trained in the RIA techniques under the consultancy financed by the project, other TA not included in the value included the following; (a) involvement of 23 of these 42 participants in 5 sessions for each of the three RIA pilots (drafting of the Inspection Law, Law on Veterinary Services and draft of the Environmental Protection Law; (b) promoting the implementation of light RIA in two workshops in the last quarter of 2011 among 20 deputy ministers and general Public Disclosure Copy secretaries, 95 directors and heads of legal and policy departments from all line ministries, leaders of independent institutions, and business people; (c) ongoing training of METE staff that worked on the project (EVIS is this correct?). Number of RIA pilots carried out Number Value 0.00 3.00 3.00 Page 5 of 8 The World Bank Report No: ISR7019 Date 31-Dec-2006 01-May-2011 31-Dec-2010 Comments Cumulative The project implemented the Cumulative targeted number of RIA pilots Public Disclosure Copy on 3 pieces of legislation: the Inspection Law, the Law of Veterinary Services and the draft law of on Environmental Protection. Of the 42 Government officials trained trained in the RIA techniques, 23 participants were involved in 5 sessions of each of the three RIA pilots. Kind of measurements in which GDM is able to Number Value 4.00 28.00 30.00 provide calibration services Date 31-Dec-2006 28-May-2012 30-Jun-2012 Comments Cumulative The GDM has significantly The target was corrected from increased its capacity to 50 to 30 in the Jan 2012 provide a more diverse type restructuring based on how of measurements based on many more types of the equipment bought measurements GDM could underthe project and EU IPA performbased on the funds, as well as capacity equipment procured. The building efforts. The GDM original target was not correct expects to fully meet the based on the procurement target at project closure. plan (that dropped some [EVIS I DO NOT EXACTLY equipment dueto delays). The KNOW HOW TO ADD THE numbers include dimensional, TYPE OF MEASUREMENTS mass, electricity, flow, HERERE. IS NO. NOT pressure, temperature, SUFFICIENT? i WOULD volume, acceleration,time and HOWEVER SAY HOW frequency,humidity, MCUH GDM EXPECTSTO roughness, hardness, EXCEED THE TARGET magnetism, viscosity, Public Disclosure Copy ONCE THE EQUIPMENT acoustics, optics, vibrations, HAS BEEN DELIVERED] ionizing, radiation, chemistry. Accreditations granted in accordance with the Number Value 3.00 23.00 24.00 EA standards Date 31-Dec-2006 30-Apr-2012 31-Dec-2011 Comments Cumulative The indicator reflects the Cumulative number of accreditations granted by DA and still valid. DA has maintained its performance at a significantly higher level thanks to the Page 6 of 8 The World Bank Report No: ISR7019 capacity building efforts financed by the project. Accreditation assessors trained (by the project) Number Value 0.00 100.00 50.00 Public Disclosure Copy Date 31-Dec-2006 30-Apr-2012 31-Dec-2011 Comments Cumulative The project financed a Cumulative significant amount of hands- on training for DA staff. The target was greatly exceeded due to the extension of the contract approved after the Jan 2012 restructuring. Adopted standards made available Percentage Value 77.40 100.00 100.00 electronically Date 31-Dec-2006 01-May-2011 30-Jun-2012 Comments Workshops organized by METE to discuss Number Value 5.00 16.00 17.00 Government#s progress in business Date 20-Dec-2006 30-Apr-2011 30-Jun-2012 environment reforms with relevant Comments Cumulative Cumulative stakeholders, including progress made in BERIS-supported reforms Data on Financial Performance (as of 08-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P096643 IBRD-48410 Effective 26-Oct-2006 27-Nov-2006 01-Mar-2007 15-Jan-2011 30-Jun-2012 P096643 IDA-42390 Effective 26-Oct-2006 27-Nov-2006 01-Mar-2007 15-Jan-2011 30-Jun-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096643 IBRD-48410 Effective USD 5.60 5.60 0.00 3.54 2.20 63.00 Public Disclosure Copy P096643 IDA-42390 Effective USD 3.70 3.70 0.00 2.94 0.92 79.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR7019 Public Disclosure Copy Key Decisions Regarding Implementation None Restructuring History Level two Approved on 28-Jan-2010, Level two Approved on 27-Aug-2010, Level two Approved on 11-Jan-2012 Related Projects There are no related projects. 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