45194 The World Bank The World Bank Improving People's Lives in Bosnia and Herzegovina Country Brief June 2008 CONTENTS INTRODUCTION i WORLD BANK GROUP 1 31 Pilot Cultural Heritage Project COUNTRY PARTNERSHIP STRATEGY (CPS) 2 32 Reconstruction Assistance Project 32 Water, Sanitation and Solid Waste Urgent Works Project LIST OF WORLD BANK FINANCED PROJECTS IN BH 3-4 PRIVATE SECTOR DEVELOPMENT AGRICULTURE 33 Business Enabling Environment Adjustment Credit Agriculture and Rural Development Project 5 33 Emergency Industrial Restart Project Avian Influenza Preparedness Project 6 34 Emergency Pilot Credit Project (RS) Small Scale Commercial Agriculture Project 7 34 Enterprise and Bank Privatization Adjustment Credit Emergency Farm Reconstruction Project 8 35 Local Initiatives Project EDUCATION 35 Local Initiatives Project II Education Restructuring Project 9 36 Enterprise Export Facility Project Emergency Education Reconstruction Project 10 36 Private Sector Credit Project Emergency Education Reconstruction Project II 10 37 Privatization Technical Assistance Project Education Development Project 11 PUBLIC SECTOR EMPLOYMENT SERVICES 38 Land Registration Project Second Employment Support Project 12 39 Economic Management Structural Adjustment Credit (EMSAC) Emergency Demobilization and Registration Project 13 39 Public Finance Structural Adjustment Credit Pilot Emergency Labor Redeployment Project 13 40 Public Finance Structural Adjustment Credit II 40 Transition Assistance Credit ENERGY AND POWER GENERATION ECSEE - APL3 (Power IV) 14 TRANSPORT Emergency Electric Power Reconstruction Project 15 41 Road Infrastructure and Safety Project Emergency Electric Power Reconstruction Project II 15 42 Emergency Transport Reconstruction Project Emergency Gas System Reconstruction Project 16 42 Emergency Transport Reconstruction Project II Emergency District Heating Reconstruction Project 16 43 Road Management and Safety Project Electric Power Reconstruction Project III 17 44 Trade and Transport Facilitation in Southeast Europe Project (TTFSE) ENVIRONMENT SOCIAL SECTOR Forest Development and Conservation Project 18 45 Social Sector Technical Assistance Credit (SOTAC) GEF - Water Quality Protection 19 45 Social Sectors Adjustment Credit (SOSAC) GEF - Forest and Mountain Protected Area Project 20 46 Social Insurance Technical Assistance Project (SITAP) GEF - Neretva and Trebisnjica Management Project 21 46 Social Sectors Adjustment Credit II (SOSAC II) Forestry Project 22 OTHER - MULTISECTORAL HEALTH 47 Emergency Recovery Project Health Sector Enhancement Project 23 48 Emergency Landmine Clearance Project Basic Health Project 24 50 Understanding the Project Cycle Essential Hospital Services Project 24 War Victims Rehabilitation Project 25 KNOWLEDGE BANK 52 Doing Business 2008 Bosnia and Herzegovina LOCAL GOVERNMENTS AND INFRASTRUCTURE 53 Public Expenditure and Institutional Review Community Development Project 26 54 Country Economic Memorandum Solid Waste Management 27 55 Pensions in BH Urban Infrastructure and Service Delivery Project 28 56 CIVIL SOCIETY FUND Emergency Housing Repair Project 29 57 YOUTH VOICES Emergency Public Works and Employment Project 29 58 PUBLIC INFORMATION CENTER Local Development Pilot Project 30 Mostar Water Supply and Sanitation Project 30 "The purpose of this brochure is to demonstrate the role of the World Bank in improving people's lives in Bosnia and Herzegovina over the last 12 years. The brochure outlines our partnership, financial support and advisory services in Bosnia and Herzegovina. It celebrates successes but also shows challenges that are still in front of us. . The World Bank played an important role in the reconstruction and development of this country after the end of the war. We would like to thank the Governments in Bosnia and Herzegovina at all levels for years of extraordinary partnership that we hope will continue in the Marco Mantovanelli coming years. We would also like to thank our international Country Manager development partners for outstanding collaboration in reconstruction and development of Bosnia and Herzegovina We are now looking forward to the next partnership phase of our involvement in the country. The success of this partnership will be measured by improved infrastructure and services, increased employment opportunities and better quality of life for the people of Bosnia and Herzegovina. Ultimately we hope this will translate into an accelerated integration in Europe." " The World Bank's mission in BH is to help grow the economy, create jobs and improve the lives of all citizens, particularly the poor. The World Bank support BH's development strategies with concessional finance for projects as well as with analysis and advice on the country's economic and social challenges. "THE BANK AT ITS BEST" ODUCTION World Bank assistance has played a significant role in successful reconstruction and early reforms in Bosnia and Herzegovina (BH). A 2004 assessment by the Independent Evaluation Group found the Bank's support for post-conflict reconstruction in BH to be an example of "the Bank at its best". Approximately 90% of the economic and social infrastructure destroyed by the war has been rebuilt or rehabilitated, supported in part by international assistance - of which the Bank was one of the largest source. . Since 1996, the World Bank has committed over US$ 1.27 billion to BH through 61 projects.1 The World Bank and the European Commission successfully organized three donor conferences raising about US$ 5.1 billion for post-conflict reconstruction of the country. The World Bank assistance in BH ranged from rehabilitation of basic services (water supply, electricity, sewage, heating, housing, roads and bridges), and establishing an accessible health care and education system, to job creation, financial sector reform (banking sector and microfinance) and assistance to BH in the process of the EU integration. In per capita terms, the World Bank assistance program in BH, which consisted of International Development Association (IDA) interest free loans and grants, has been the largest in the history of the organization iINTR in any post-conflict country. 1The amount of US$ 1.27 billion includes US$ 25 million of IDA grants and US$ 18.3 million of GEF grants IDA Commitments - per FY and Cumulative 1400 1196.11235.51269.9 1145.1 WORLD 1200 1081.2 961.5 984.2 n 1000 859.5 illio 697.6 735.2 800 m $ 534.6 S 600 U 357.6 400 in 160.0 177.0 163.0 124.3 102.0 97.0 200 197.6 37.6 22.7 63.9 51.0 39.4 34.4 0 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 Fiscal Years New commitments per FY Cumulative commitments IFC, MIGA and WBI ACTIVITIES IN BH The World Bank Group has played a significant role in the development story of Bosnia and Herzegovina. In addition to IDA commitments (interest free loans and grants) totaling over US$1.2 billion, International Finance Corporation (IFC) invested nearly $250 million, and about $310 million was provided in guarantees from Multilateral Investment Guarantee BANK Agency (MIGA). . IFC - In July 2005, IFC started a new facility, Private Enterprise Partnership South Europe (PEP-SE). The new facility supports private sector development in the Balkans, including BH, through advisory services for commercial mediation, development of a regional recycling supply chain, introduction of international and EU manufacturing standards, and corporate governance program, and public private partnerships for investment in infrastructure. . GR MIGA's investment insurance mitigates the political risks the private sector faces when investing in developing countries. At the end of the war in 1995, few banks operated in BH. Those that did, set interest rates very high and required multiple guarantors to co-sign loans, making borrowing next to impossible for the average citizen and for small businesses. Today, the banking sector stands transformed. An influx of activity by foreign banks, purchasing locally owned banks or starting anew, has brought a vibrancy and competitive edge to the moribund industry, spurring a wide range of OUP new economic and consumer activity. Some of the country's top banks (Raiffeisen, HVB, Hypo-Alpe-Adria), in terms of market share, received political risk insurance from MIGA. In addition to banking sector, MIGA issued guarantees to the Coca Cola Beverages Company, International Dialysis Center in Banja Luka, Mercator Shopping Center in Sarajevo, and Coprotect Systems - Orasje. . World Bank Institute (WBI) WBI, with financial support by Austrian Government and in close collaboration with the Bank office in Sarajevo, launched a leadership program in support of BH's Stabilization and Association Agreement negotiations with the EU. Advisory services planned for next year include Gender and Poverty Analysis, Community Driven Development - participatory budgeting; and Private Sector Development and an Internal Audit program designed to support improved governance in BH. 1 CPS COUNTRY PARTNERSHIP STRATEGY (CPS) FY08 - FY11 The CPS for BH for the period 2008 - 2011 outlines the partnership with BH in support of the country's priorities, including integration with the European Union. The key principles of the strategy are: · Results: ensure that the World Bank financed activities have a lasting impact and improve lives of people in the country. · Flexibility: the World Bank is open to supporting all options that support reforms and investments where they can make the greatest development impact. The ultimate decision about the allocation of funds for projects lies with the BH authorities. · Partnership: the lending program under the CPS was designed in partnership with the BH authorities, at State and Entity level, and after consultations with other development partners including civil society organizations, media, and the donor community. The CPS program will be implemented in partnership with these stakeholders. The World Bank Group strategy will support country goals to continue with dynamic economic growth, to reduce poverty, and accelerate EU accession and integration. The CPS evolves around two pillars: Pillar I - improve the environment for private sector growth and convergence to Europe; and and Pillar II - improve the quality of Government spending and the delivery of public services for the vulnerable. Through the CPS program, the World Bank will support investments in infrastructure, municipal development, transport and energy sectors, business environment, public sector reform, and social sectors reform. With a mix of financial and non-financial services, the World Bank will support the Government to achieve their development goals of improving infrastructure and the investment climate, increasing the efficiency of public spending, and strengthening service delivery - in particular those directed to the most vulnerable segments of the population. . During the CPS period, the BH will make a transition from borrowing under soft IDA conditions to more commercial, but still relatively cheap borrowing under IBRD conditions. The transition to IBRD Indicates that the World Bank has confidence that the country is moving in the right direction. A base case lending envelope of about US$ 200 million over the period, could be expanded based on need, 2 demand, and the pace of the reform process in BH. . List of World Bank financed projects in Bosnia and Herzegovina Active Projects Name of the Project Original Commitment 1 Agriculture and Rural Development US$ 21 million ­ IDA Credit 2 Avian Influenza Preparedness US$ 5 million ­ IDA Credit 3 Community Development US$ 20 million ­ IDA Credit 4 ECSEE APL 3 US$ 36 million ­ IDA Credit 5 Education Restructuring US$ 10 million ­ IDA Credit 6 Forest Development and Conservation US$ 7.1 million ­ IDA Credit 7 Forest and Mountain Protected Areas US$ 3.4 million ­ GEF Grant 8 Health Sector Enhancement US$ 17 million ­ IDA Credit 9 Land Registration US$ 15 million ­ IDA Credit 10 Neretva and Trebisnjica Management US$ 6 million ­ GEF Grant 11 Road Infrastructure and Safety US$ 25 million ­ IDA Credit 12 Second Employment Support US$ 12 million ­ IDA Credit 13 Small Scale Commercial Agriculture US$ 12 million ­ IDA Credit 14 Solid Waste Management US$ 26 million ­ IDA Credit 15 Urban Infrastructure and Services US$ 25 million ­ IDA Credit 16 Water Quality Protection US$ 8.9 million ­ GEF Grant Sub-total active projects US$ 231.1 million ­ IDA Credits US$ 18.3 million ­ GEF Grant TOTAL ACTIVE PROJECTS US$ 249.4 million 3 Closed Projects 17 Basic Health US$ 10 million - IDA Credit 18 Business Enabling Environment (BAC) US$ 44 million ­ IDA Credit 19 Economic Management (EMSAC) US$ 34 million ­ IDA Credit 20 Education Development US$ 10.6 million ­ IDA Credit 21 Electric Power Reconstruction III US$ 35 million ­ IDA Credit 22 Emergency Demobilization and Reintegration US$ 7.5 million ­ IDA Credit 23 Emergency District Heating Reconstruction US$ 20 million ­ IDA Credit 24 Emergency Education Reconstruction US$ 5 million ­ IDA Credit US$ 5 million ­ IDA Grant 25 Emergency Electric Power Reconstruction US$ 35.6 million ­ IDA Credit 26 Emergency Farm Reconstruction US$ 20 million ­ IDA Credit 27 Emergency Gas System Reconstruction US$ 10 million ­ IDA Credit 28 Emergency Housing Repair US$ 15 million ­ IDA Credit 29 Emergency Industrial Restart US$ 10 million ­ IDA Credit 30 Emergency Landmines Clearance US$ 7.5 million ­ IDA Credit 31 Emergency Pilot Credit US$ 5 million ­ IDA Credit 32 Emergency Public Works and Employment US$ 10 million ­ IDA Credit 33 Emergency Recovery US$ 30 million ­ IDA Credit US$ 15 million ­ IDA Grant 34 Emergency Transport Reconstruction US$ 35 million ­ IDA Credit 35 Enterprise and Bank Privatization Adj. Credit US$ 50 million ­ IDA Credit 36 Enterprise Export Facility US$ 12 million ­ IDA Credit 37 Essential Hospital Services US$ 15 million ­ IDA Credit 38 Forestry US$ 7 million ­ IDA Credit 39 Local Development US$ 15 million ­ IDA Credit 40 Local Initiatives (Microfinance) US$ 7 million ­ IDA Credit 41 Local Initiatives (Microfinance) II US$ 20 million ­ IDA Credit 42 Mostar Water Supply and Sanitation US$ 12 million ­ IDA Credit 43 Pilot Cultural Heritage US$ 4 million ­ IDA Credit 44 Pilot Emergency Labor Redeployment US$ 15 million ­ IDA Credit 45 Private Sector Credit US$ 10 million ­ IDA Credit 46 Privatization Technical Assistance US$ 19.8 million ­ IDA Credit 47 Public Finance Str. Adj. Credit (PFSAC) US$ 63 million ­ IDA Credit 48 Reconstruction Assistance US$ 17 million ­ IDA Credit 49 Road Management and Safety US$ 30 million ­ IDA Credit 50 Second Electric Power Reconstruction US$ 25 million ­ IDA Credit 51 Second Emergency Education Reconstruction US$ 11 million ­ IDA Credit 52 Second Emergency Transport Reconstruction US$ 39 million ­ IDA Credit 53 Second Public Finance SAC (PFSAC II) US$ 72 million ­ IDA Credit 54 Social Insurance Technical Assistance US$ 7 million ­ IDA Credit 55 Social Sector Technical Assistance Credit (SOTAC) US$ 3.5 million ­ IDA Credit 56 Social Sector Adjustment Credit (SOSAC) US$ 20 million ­ IDA Credit 57 Social Sector Adjustment Credit II (SOSAC II) US$ 51 million ­ IDA Credit 2 58 Trade and Transport Facilitation in SEE US$ 11 million ­ IDA Credit 59 Transition Assistance Credit US$ 90 million ­ IDA Credit 60 War Victims Rehabilita tion Project US$ 5 million ­ IDA Credit US$ 5 million ­ IDA Grant 61 Water, Sanitation, and Solid Waste Urgent US$ 20 million ­ IDA Credit Sub ­ total closed projects US$ 995.5 million ­ IDA Credits US$ 25 million ­ IDA Grants TOTAL CLOSED PROJECTS US$ 1,020.5 million US$ 1,226.6 million ­ IDA Credits US$ 25 million ­ IDA Grants GRAND TOTAL (active and closed projects) US$ 18.3 million ­ GEF Grant US$ 1,269.9 million 4 2SOSAC II Credit was cancelled. ACTIVE PROJECTS AGRICUL AGRICULTURE AND RURAL DEVELOPMENT PROJECT Objective The project will strengthen the capacity of the State and Entity-level institutions to deliver more efficient and effective agricultural services to farmers and food producers. The project will also help accelerate the country's eligibility to access support under the European Union Instrument for TURE Pre-Accession Assistance for Rural Development (IPARD). . Expected Results In addition to meeting the above mentioned objectives, the project will improve ability of the line ministries (Ministries of Agriculture and Water Management) to disburse and track the use of subsides and rural development funds and to evaluate their impact on the agri-food sectors. World Bank financing: Credit Effective: Closing Date: US$ 21 million (IDA Credit) February 27, 2008 June 30, 2012 Contacts: World Bank Ms. Mirjana Karahasanovic Phone: (387-33) 251-522 mkarahasanovic@worldbank.org External Mr. Seid Uzunovic Ministry of Foreign Trade and Economic Relations Phone: (387-33) 209-809 seid.uzunovic@mvteo.gov.ba Ms. Amela Ibrahimovic FBH Ministry of Agriculture, Water-Management and Forestry Phone: (387-33) 213-099 a.ibrahimovic@piusum.ba Ms. Renata Rakic RS Ministry of Agriculture, Forestry and Water Phone: (387-51) 338-361 rakic@rsapcu.org 5 TURE AGRICUL AVIAN INFLUENZA PREPAREDNESS PROJECT Objective The objective of the project is to minimize the threat posed to humans and the poultry industry by Highly Pathogenic Avian Influenza (HPAI) infection and other such viruses. The project will help introduce effective control, and response to an influenza pandemic and other infectious disease emergencies in humans. Expected Results The project will achieve the following results: i) behavior changes among key veterinary and public health personnel to strengthen preparedness in case of virus outbreaks; ii) improved public awareness on how to prevent spread of infections; iii) introduce mechanisms for timely compensation of farmers for culled birds. Contacts: World Bank Ms. Mirjana Karahasanovic World Bank financing: Phone: (387-33) 251-522 US$ 5 million (IDA Credit) mkarahasanovic@worldbank.org Credit Effective: External March 27, 2008 Ministry of Foreign Trade and Economic Relations State Veterinary Office of BH Closing Date: Mr. Drago Nedic, Director, SVO December 31, 2010 Phone: (387-33) 258-840 drago.nedic@vet.gov.ba 6 AGRICUL Contacts: World Bank World Bank financing: Ms. Mirjana Karahasanovic US$ 12 million (IDA Credit) Phone: (387-33) 251-522 mkarahasanovic@worldbank.org Credit Effective: July 28, 2003 External Closing Date: Mr. Alojz Dundjer December 31, 2009 FBH Ministry of Agriculture, Forestry, TURE and Water Management Phone: (387-33) 213-099 piusum@bih.net.ba Mr. Zeljko Vasko RS Ministry of Agriculture, Water Resources and Forestry Phone: (387-51) 338-736 vasko@sapcu.org SMALL SCALE COMMERCIAL AGRICULTURE PROJECT Objective The project is focused on the Southeastern part of the country. The area has a Mediterranean climate, which is favorable for early production of fruit and vegetables, has potential for on-farm irrigation resources and continues to have traditional trade with neighboring countries. The project objectives are to: (i) encourage farmers to adopt more productive and profitable production systems and increase the marketability of their products; (ii) strengthen linkages among farmers and markets through the promotion of private sector investment, and credit for farming, agro-processing and trading; (iii) facilitate the export of agriculture products; and (iv) support measures and investments to strengthen the physical and institutional infrastructure in rural communities. Expected Results The increased production and productivity resulting from the project will increase farming and other rural incomes, improve income generating opportunities and subsequently contribute to unemployment and poverty reduction in the Southeastern part of the country. 7 CLOSED PROJECTS TURE EMERGENCY FARM RECONSTRUCTION PROJECT Objective With war-related massive loss of employment opportunities and dislocation of people, agriculture became an important source of survival after the war. Food production and supply were precariously low and a minimum of food security could be maintained only with large external support. Activities on the AGRICUL farms were severely constrained by the decimated livestock population and lack of machinery and equipment. The objectives of the project were to jump-start agricultural production, improve food security, and create employment and income for the war-affected rural population, including displaced persons. The project was aimed primarily at the private farm sector, with priority given to full-time farmers, and was to have a fast, direct impact on the ground. Results During 1996, under IFAD-financing, and in cooperation with the World Bank, the following livestock were imported and distributed: 3,929 cattle (Simmental, Brown-Swiss, Black and White, and Gray Tyrol); 650 Saanen goats; and 701 Mountain Alpine goats. Livestock financed by Saudi Arabia (797 heifers), the Federation BH (505 heifers and 5,000 sheep) and the NGOs (252 heifers) were procured and distributed by the project implementation unit as well. Under Dutch Government procurement and financing (NLG 4.2 million), 946 heifers were imported and distributed to farmers in 1997. In addition to this, the project delivered 2,912 farm tractors and 14 combines to farmers. Also, 1,300 EC-financed tractors were allocated to farmers. World Bank financing: Credit Effective: Closing Date: US$ 20 million (IDA Credit) April 1, 1996 June 30, 1998 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org 8 EDUCA ACTIVE PROJECTS TION Contacts: World Bank Ms. Zorica Lesic Phone: (387-33) 251-530 zlesic@worldbank.org External Ministry of Civil Affairs Department for Education, Science, Culture, and Sports Ms. Lejla Kadusic Mr. Milan Rezo Phone: (387-33) 713-955 EDUCATION RESTRUCTURING PROJECT Objective The objective of the project is to increase participation in secondary education programs, and to improve the efficiency of education delivery in general and especially in secondary education. Expected Results In order to increase labor market competitiveness of secondary school graduates, the project will help increase a share of enrollment in the first year of four year secondary education vocational programs from 68% in the Federation BH and 73% in the RS to 90 percent in each Entity by March 2011. World Bank financing: Credit Effective: Closing Date: US$ 10 million (IDA Credit) April 12, 2007 March 31, 2010 9 CLOSED PROJECTS EMERGENCY EDUCATION RECONSTRUCTION PROJECT TION Objective The project objectives were: (i) to help restore the delivery of effective teaching and learning in primary education during the 1996-1997 school year; (ii) to help build government capacity for planning and implementing education programs at the Entity, canton and municipality levels; and (iii) to facilitate communication and cooperation between the partners in the Federation BH, and, eventually, between education authorities in the Federation BH and Republika Srpska. Results EDUCA 28 primary schools were reconstructed with the World Bank financing, and additional 37 schools were reconstructed through parallel financing. 78 different textbooks and other educational materials were delivered to primary schools in the country. Institutional capacity of the Federation BH Ministry of Education was developed to begin planning the education sector reforms. World Bank financing: Credit Effective: Closing Date: US$ 5 million (IDA grant) August 1, 1996 September 30, 1998 US$ 5 million (IDA Credit) Contact: Ms. Zorica Lesic; Phone: (387-33) 251-530; zlesic@worldbank.org EMERGENCY EDUCATION RECONSTRUCTION PROJECT II Objective The objectives of the project were to improve access and quality of primary education by reconstructing primary schools throughout the country, including schools which were ready for tendering but for which financing was not available under the first Emergency Education Reconstruction Project. Results 44 primary schools.were reconstructed and equipped. Furthermore, the project financed the emergency provision of textbooks. This financing helped restore the delivery of primary education of acceptable quality. The project also: (i) helped build government implementation capacity to plan and deliver reconstruction and education programs; (ii) piloted a competitive textbook procurement model in which publishers submitted published textbooks for the ministries evaluation and selection; (iii) financed the production of an education governance study; and (iv) helped promote cooperation across the constituent groups. World Bank financing: Credit Effective: Closing Date: US$ 11 million (IDA Credit) September 25, 1997 June 30, 2000 10 Contact: Ms. Zorica Lesic; Phone: (387-33) 251-530; zlesic@worldbank.org EDUCA EDUCATION DEVELOPMENT PROJECT TION Objective The project had the following objectives: (i) to mobilize the professional capacity of teachers to improve the teaching and learning processes, and improve the quality of education to primary school children; (ii) to promote the efficient and effective use of scarce public resources for education in BH by providing public policy makers and decision makers with management tools and information necessary to measure inputs, outputs and outcomes in the education system; and (iii) to promote cooperation and coordination across the three main constituent groups in an effort to reduce inefficient use of public resources and build a professional basis for stakeholder dialogue in the education sector. Results The school grants and the teacher training institution grants helped to improve the teaching and learning processes in schools. Evaluation reports show that the quality enhancement grants provided under this project have strengthened the capacity at school level for improvements in the quality of teaching and learning. The establishment of the Standards and Assessment Agency (SAA) and the development of the Education Management Information System (EMIS) contributed significantly to the achievement of the second objective. The development of the pilot per-student formula financing model contributed to the promotion of efficient and effective use of scarce public resources. For the first time in BH all three ethnic groups work together through the SAA to set standards in education and evaluate student's performance through a nationwide testing. World Bank financing: Credit Effective: Closing Date: US$ 10.6 million (IDA Credit) October 1, 2000 December 31, 2004 Contact: Ms. Zorica Lesic; Phone: (387-33) 251-530; zlesic@worldbank.org 11 ACTIVE PROJECTS VICES Contacts: World Bank Mr. Goran Tinjic Phone: (387-33) 251-518 gtinjic@worldbank.org SER External Mr. Marko Pejcinovic, Mr. Amrudin Nurak PIU SESER - Federation BH Phone: (387-33) 279-180 Mr. Jadranko Rokvic Development and Employment Foundation - Republika Srpska Phone: (387-516) 221-270 OYMENT SECOND EMPLOYMENT SUPPORT PROJECT Objective The project objective is to provide employment services to 10,000 unemployed people above 40 years of age who are actively seeking jobs. Through provision of these employment services, the project will bring business change in the employment services by focusing the public employment services on providing effective job brokerage services EMPL Expected Results The project will facilitate delivery of job brokerage services to about 10,000 hard-to-employ active job seekers. Public employment services will focus on job brokerage and active labor market programs and reduce activities unrelated to employment services. The project will also assist the Government introduce adequate legislation for private sector providers of active labor market programs. World Bank financing: US$ 12 million (IDA Credit) Credit Effective: December 17, 2004 Closing Date: September 30, 2008 12 CLOSED PROJECTS EMPL EMERGENCY DEMOBILIZATION AND REINTEGRATION PROJECT Objective The overall project objective was to assist with the long-term economic reintegration of demobilized soldiers and displaced workers into the civilian workforce in order to reduce the burden on families, OYMENT decrease dependency on eventual social assistance, and increase economic productivity. Results The project was particularly successful at providing counseling and job-placement services. Thirty-six contracts were signed with public and private providers, which benefited over 3,000 members of the target populations. Support for education and retraining reached 20,000 beneficiaries. The management assistance component of the project provided support and guidance in setting up the overall institutional framework, including the Entity Employment and Training Foundations which paved the way for the successful implementation of three Bank financed projects. SER World Bank financing: Credit Effective: Closing Date: US$ 7.5 million (IDA Credit) August 28, 1996 September 30, 1999 Contact: Ms. Zorica Lesic; Phone: (387-33) 251-530; zlesic@worldbank.org VICES PILOT EMERGENCY LABOR REDEPLOYMENT PROJECT Objective The primary objective was to provide ex-soldiers with the means for self-reliant existence. The project focused on supporting the ex-soldiers in their ability to find employment and to create sustainable jobs and businesses, re-deploying as it were, ex-soldiers within the economically active civilian population. The secondary project development objective was to test different active labor market measures to encourage employment generation, small business creation for the benefit of ex-soldiers and provide stimulus to local training, businesses and consultancy firms. Results 7,278 ex-soldiers were employed thanks to project services. Of the 7,278 who received assistance, 5,405 were provided assistance in self-employment in agriculture, 192 in self-employment in small businesses, 1,493 received on the job training and 188 vocational training. Active labor market programs that were successfully tested under the project were a basis for design of the Second Employment Support Project. World Bank financing: Credit Effective: Closing Date: US$ 15 million (IDA Credit) December 5, 2000 September 30, 2004 13 Contact: Mr. Goran Tinjic; Phone: (387-33) 251-518; gtinjic@worldbank.org ACTIVE PROJECTS Contacts: TION World Bank Ms. Vesna Francic Phone: (387-33) 251-504 vfrancic@worldbank.org External Mr. Nedeljko Despotovic PIU Director EPBiH, Sarajevo Phone: (387-33) 751-030 Mr. Bozidar Jovanovic PIU Director EPZHB, Mostar Phone: (387-36) 335-724 GENERA Mr. Milorad Zivkovic PIU Director EPRS, Banja Luka Phone: (387-51) 215-658 WER ECSEE - APL3 (Power IV) Objective PO The countries of South East Europe, including BH, and the European Commission are cooperating to develop a regional energy market, the Energy Community of South East Europe (ECSEE) and integrate it into the internal energy market of the European Union. This project facilitates BH's participation in the ECSEE through investments to improve dam safety; reduce adverse environmental impacts at thermal power stations; replace ageing existing facilities and equipment at hydro-power and thermal power stations; and rehabilitate distribution systems. AND Expected Results GY Electricity generation maintained at or above base levels in corresponding hydrological conditions and assuming the avoidance of significant shutdowns of equipment not covered by the project. Environmental compliance improved at Kakanj, Tuzla, Ugljevik and Gacko Thermal Power Plants. Dam safety improved at Grabovica, Salakovac, Jablanica, Rama, Trebinje II, Visegrad and Bocac hydropower plants. ENER World Bank financing: Credit Effective: Closing Date: US$ 36 million (IDA Credit) April 13, 2007 December 31, 2010 14 CLOSED PROJECTS ENER EMERGENCY ELECTRIC POWER RECONSTRUCTION PROJECT Objective The objectives of the project were to: (i) restore electricity services to acceptable levels in the major cities and for vital industries; (ii) to increase coal production in the most efficient mines to supply the fuel GY necessary for thermal power plants; (iii) reconfigure the electric power network; (iv) enhance the electricity enterprises' institutional capacity and improve their finances; and (v) support power and coal sector restructuring. AND Results Restoration of electricity supply was both urgent as well as vital to the resumption of normal life and economic activity in the immediate post-conflict period. In quantitative terms, electricity production from EPBiH's rehabilitated plants rose by two-thirds, to over 2,400 GWh, by the time of project completion. Coal production doubled between 1996 and 1998 to over 2 million tons, keeping pace with the needs of the power sector. Thus within a two-year period electricity supply returned to acceptable levels in all major PO towns, meeting one of the crucial preconditions for a resumption of economic growth. Excellent results were also achieved in the financial area as energy losses in the EPBiH distribution system fell sharply and there were major improvements in meter reading, billing, and revenue collection. WER World Bank financing: Credit Effective: Closing Date: US$ 34.4 million (IDA Credit) September 20, 1996 December 31, 1998 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org EMERGENCY ELECTRIC POWER RECONSTRUCTION PROJECT II GENERA Objective The objective of the project was to restore electricity supply in BH at least cost. The project aimed to help restore BH's electricity generation, transmission and distribution systems to meet at least part of the expected increase in demand within BH, reconnect many consumers who were still without power after the war, and reduce power outages, variations in voltage level, and other quality of service defects. TION Results The project provided support for an extensive reconstruction and rehabilition of thermal and hydroelectric power plants in both the Federation BH and the RS.The project met its objectives in terms of increasing power supply capacities, strengthening coordination between Elektroprivredas, and made progress towards the restructuring of the sector in both entities. Losses on operations were reduced and revenue collection improved in all three Elektroprivredas. A Coal Sector Restructuring Study was also developed under the project. Electricity policy statement was prepared and entity level Electricity laws drafted. World Bank financing: Credit Effective: Closing Date: US$ 24 million (IDA Credit) March 31, 1999 December 31, 2001 15 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org EMERGENCY GAS SYSTEM RECONSTRUCTION PROJECT Objective The objective of the project was to restore a safe and reliable gas supply to BH, and in particular to Sarajevo, by repairing or reconstructing the gas transmission and distribution systems. This included the TION rehabilitation of the transmission line, distribution network and connections of large users, and disconnection of 34,000 flats as soon as they were reconnected to a functioning district heating system. The second objective was to enhance safety and energy efficiency and reduce environmental pollution by converting self-made gas connections to industry standards. Results The project enabled Sarajevo Gas to carry out vital repairs to the transmission pipeline, including the re- installation of cathodic protection and metering. In the distribution system, 48,000 illegal connections were regularized, 11,000 deteriorated pre-war connections were repaired, and new meters installed. With the project's completion, the number of households reconnected reached the target number of 58,000, GENERA including many in Sarajevo's severely destroyed refugee-return areas. The rehabilitation of the transmission pipeline, including landmine clearing, was fully accomplished. Technical assistance in billing and collection, and studies on tariffs, sector restructuring and sector development were undertaken to support the enterprise in developing and planning its future activities. World Bank financing: Credit Effective: Closing Date: US$ 10 million (IDA Credit) April 17, 1998 July 31, 1999 WER Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org PO EMERGENCY DISTRICT HEATING RECONSTRUCTION PROJECT Objective The project objectives were to: (i) restore district heating services in war destroyed city of Sarajevo by AND reconstructing both the district heat supply system as well as building internal installations; (ii) enable BH to potentially reduce its gas consumption through fuel switching by Toplane-Sarajevo from gas to fuel oil, which would enhance the country's strategically important security of energy supply; (iii) strengthen Toplane-Sarajevo's institutional capacity; and (iv) initiate network improvements. GY Results Major physical reconstruction started at the beginning of August 1996 and achieved the full reconnection and restoration of heat supply to 45,000 flats. Boiler operations were brought back to full capacity, the network was surveyed and all leaking sections were replaced. In addition, system efficiency was increased, and a preventive maintenance system was introduced at Toplane. The project also contributed to re-start of the Banja Luka district heating system in priority areas. ENER World Bank financing: Credit Effective: Closing Date: US$ 20 million (IDA Credit) July 19, 1996 March 31, 1999 16 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org ENER GY ELECTRIC POWER RECONSTRUCTION PROJECT III AND Objective The project represents continuation of the post-conflict reconstruction program in the power sector. Its objective is to ensure access to reliable, lower cost electricity, to be supplied with reduced environmental and safety risks, and improved cost recovery by suppliers. PO Results WER The results of this project were: increased power generation and sales; reduced ambient pollution levels at thermal power stations; reduced transmission and distribution losses; reduced unserved energy due to outages; increased restored and new connections; improved revenue collection; increased gross power flows between the power companies; adoption of the national energy strategy; passage of electricity laws consistent with EU Directives; establishment of an independent regulatory agency. World Bank financing: Credit Effective: Closing Date: US$ 35 million (IDA Credit) January 16, 2002 March 31, 2008 GENERA Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org TION 17 ACTIVE PROJECTS World Bank financing: US$ 7.1 million (IDA Credit) Credit Effective: October 3, 2003 ONMENT Closing Date: November 30, 2010 FOREST DEVELOPMENT AND CONSERVATION PROJECT ENVIR Objective The project will assist with the implementation of reforms in forest organization, and management, expected to increase revenues, improve forest management and enhance biodiversity conservation through participatory approaches in forest land use planning. Expected Results Forest administration in the Federation BH will be established and operational. National Forest Inventory completed including an assessment of forest resources with priorities for ecosystem protection. Forest Management Information System (FMIS) will be developed, introduced and operational in the RS and at least 5 cantons in the Federation BH. Contacts: World Bank Ms. Mirjana Karahasanovic Phone: (387-33) 251-522 mkarahasanovic@worldbank.org External Mr. Alojz Dundjer PIU Ministry of Agriculture, Water Management and Forestry FBH Phone: (387-33) 213-099 Mr. Zeljko Stojanovic PIU Ministry of Agriculture, Forestry and Water Resources RS Phone: (387-51) 338-363 18 ENVIR ONMENT Contacts: World Bank Ms. Vesna Francic Phone: (387-33) 251-504 vfrancic@worldbank.org External Mr. Almir Prljaca Ministry of Agriculture, Water Management and Forestry FBH Phone: (387-33) 443-338 GEF - WATER QUALITY PROTECTION Objective The project aims to further strengthen the capacity of local utilities and reduce pollution from municipal sources into the Neretva and Bosna rivers. Expected Results The project will facilitate development of a regional approach in pollution reduction, in furthering international cooperation in international waters, and will help reduce pollution from municipal sources into the Neretva and Bosna rivers. World Bank financing: US$ 8.9 million (Global Environment Fund - GEF) grant Credit Effective: November 18, 2005 Closing Date: February 28, 2011 19 GEF3- FOREST AND MOUNTAIN PROTECTED AREAS PROJECT Objective The objective of the project is to assist the Government in BH conserving its globally significant biodiversity in critical forests and mountain ecosystems. The project will also help BH on its path towards European Union integration through support to the Government in meeting the EU nature and biodiversity policy (Natura 2000) requirements. ONMENT Expected Results The project will address threats to biodiversity by promoting ecosystem management and by expanding the protected area system to a level reflecting local needs and regional averages. This is especially critical for BH, which has the highest proportion of threatened plant species in any European country, yet less than one percent of its land is currently set aside as protected areas -- a striking contrast to a regional average of 7 percent. The project will focus on improving the management effectiveness of four existing protected areass, bringing two additional sites under protected status, assessing feasibility for another site and promoting sustainable natural resource management and biodiversity conservation activities in or around ENVIR protected areas. The project will directly support the proposed National Biodiversity Strategy and Action Plan as well as the Government's Medium Term Development Strategy by creating conditions for sustainable and balanced economic development and by promoting poverty alleviation through improved use of protected areas for local livelihoods and tourism. 3The Global Environment Facility is a 178 member international financing body devoted to global environmental issues that support sustainable development. GEF grants flow to projects in developing countries related to biodiversity, climate change, international waters, land degradation, the ozone layer and persistent organic pollutants. The World Bank Group is one of GEF's implementing agencies and supports countries in preparing GEF co-financed projects and supervises their implementation. World Bank financing: Credit Effective: Closing Date: US$ 3.4 million (GEF grant) not yet effective April 30, 2013 Contacts: World Bank Ms. Mirjana Karahasanovic Phone: (387-33) 251-522 mkarahasanovic@worldbank.org External Mr. Muris Hadzic FBH Ministry of Environment and Tourism Phone: (387-33) 212-837 fmobnova@bih.net.ba Mr. Zoran Lukac RS Ministry of Planing, Civil Engineering and Ecology Phone; (387-51) 339-514 z.lukac@mgr.vladars.net 20 ENVIR Contacts: World Bank Ms. Mirjana Karahasanovic Phone: (387-33) 251-522 mkarahasanovic@worldbank.org External ONMENT Ms. Hazima Hadzovic FBH Ministry of Agriculture, Water Management and Forestry Phone: (387-33) 205-620 fmpvode_01@bih.net.ba Mr. Nebojsa Jaksic RS Ministry of Agriculture, Forestry and Water Management Phone: (387-51) 338-424 n.jaksic@mps.vladars.net GEF - NERETVA AND TREBISNJICA MANAGEMENT PROJECT Objective The project objective is to provide mechanisms for the efficient and equitable water allocation among the users of the Neretva and Trebisnjica River Basin at the transboundary level, and for enhancing the basin ecosystems and biodiversity through improved water resource management. This is a joint operation between BH and the Republic of Croatia. Expected Results It is expected that by the project completion a river basin management plan will be prepared and adopted by the two countries, water nutrients and other pollution from municipal and industrial sources in selected municipalities in the basin will be reduced through rehabilitation of several wastewater treatment plants, maintenance of environmental flows and ecosystem health and biodiversity in the basin will be improved, and saltwater intrusion as a result of implementation of a pilot scheme in Neretva Delta will be reduced. World Bank financing: US$ 6 million (GEF grant) Credit Effective: not yet effective Closing Date: December 31, 2013 21 CLOSED PROJECTS FORESTRY PROJECT ONMENT Objective The objectives of the project were to resume sustainable management and protection of forest resources in BH, in order to: (i) ensure the sustainability of the rapid recovery of the wood harvesting and wood processing sectors; and (ii) control the potential environmental impact of this recovery. ENVIR Results The project brought significant environmental and economic benefits for the country. It introduced policy changes in forest management, helped resume sustainable forest management planning and harvesting to provide inputs for the wood industry, and provided road maintenance and forest management equipment to implement and monitor policy and management improvements. World Bank financing: Credit Effective: Closing Date: US$ 7 million (IDA Credit) July 20, 1998 March 31, 2003 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org 22 HEAL ACTIVE PROJECTS HEALTH SECTOR ENHANCEMENT PROJECT TH Objective The overall objective of the project is to improve the overall impact on non-communicable diseases as measured by proxy indicators and: (i) enhance health system efficiency through restructuring and strengthening of primary health care along the family medicine model; and (ii) strengthen the sector policy making process through the development and implementation of a system for monitoring and evaluating health sector performance. Expected Results The key result of this project will be expansion of family medicine model of primary health care and improvement in quality, efficiency, and access to primary health care services, leading to better health outcomes World Bank financing: Credit Effective: Closing Date: US$ 17 million (IDA Credit) April 3, 2006 December 15, 2010 Contacts: World Bank Mr. Michele Gragnolati Phone: (387-33) 251-509 mgragnolati@worldbank.org Mr. Vedad Ramljak Phone(387-33) 251-523 vramljak@worldbank.org External FBH Ministry of Health Phone: (387-33) 664-245 RS Ministry of Health and Social Welfare Phone: (387-51) 216-599 23 CLOSED PROJECTS TH BASIC HEALTH PROJECT Objective The project had three objectives: to establish a primary health care system based on cost-effective HEAL interventions; to reduce lost productivity due to preventable illnesses, disabilities and premature deaths; and to improve local and national capacities for managing the health sector. This was the Bank's third health sector operation in the Federation and the second in Republika Srpska. Results Primary health care system based on cost-effective interventions - reduction of lost productivity due to preventable illnesses, disabilities and premature deaths was achieved. National capacity for managing the health sector was improved. World Bank financing: Credit Effective: Closing Date: US$ 10 million (IDA Credit) September 1, 1999 June 30, 2004 Contact: Ms. Mirjana Karahasanovic; Phone: (387-33) 251-522; mkarahasanovic@worldbank.org ESSENTIAL HOSPITAL SERVICES PROJECT Objective The project had twin key objectives. The first was to rehabilitate hospital services, restoring them to acceptable functional levels and standards. The second was to commence health-financing reforms. The rehabilitation and restoration of essential hospital services was set in a broader and longer-term context of contributing to moving the hospital sector towards a more modem and ultimately cost-effective sector although achievement of the latter was not a specific objective. Results Medical equipment was delivered and installed, hemodialysis consumables distributed to hospitals in both entities. Civil works on the Tuzla clinical center, the pediatric clinic and central sterilization unit in Sarajevo clinical center, Mostar clinical center, Bihac, Jajce, Gorazde, Livno, Travnik, Orasje and Zenica cantonal hospitals were completed. Civil works were also completed for Trebinje, Doboj, Rogatica and Banja Luka health insurance offices. World Bank financing: Credit Effective: Closing Date: US$ 15 million (IDA Credit) May 23, 1997 June 30, 2002 Contact: Ms. Mirjana Karahasanovic; Phone: (387-33) 251-522; mkarahasanovic@worldbank.org 24 HEAL TH WAR VICTIMS REHABILITATION PROJECT Objective The project was prepared in the immediate aftermath of the war. Key indicators set for the project were (i) establishment of a network of 76 community-based rehabilitation centers and related hospital services; (ii) provision to approximately 3,000 amputees with permanent prostheses; (iii) production of prostheses and orthoses in six centers; and (iv) availability of orthopedic and reconstructive surgical services in seven clinical centers and cantonal hospitals. Results The community-based rehabilitation component funded investments -largely civil works -for a total of 64 rehabilitation centers (32 for physical rehabilitation and 32 for mental health rehabilitation). The prostheses and orthoses production component funded civil works and provision of equipment (including prostheses) for six prosthetic centers for prosthesis manufacture, fitting, and maintenance. The orthopedic and reconstructive surgery component funded civil works and provision of equipment in the three clinical centers (Sarajevo, Tuzla, and Mostar) and four cantonal hospitals (Zenica, Travnik, Livno, and Bihac). The surgical departments at all sites were renovated and outfitted, and use of the departments began in 1998. World Bank financing: Credit Effective: Closing Date: US$ 5 million (IDA grant) August 1, 1996 December 31, 1999 US$ 5 million (IDA Credit) Contact: Ms. Mirjana Karahasanovic; Phone: (387-33) 251-522; mkarahasanovic@worldbank.org 25 ACTIVE PROJECTS AND Contacts: World Bank Mr. Goran Tinjic Phone: (387-33) 251-518 gtinjic@worldbank.org UCTURE External FBH Foundation for Sustainable Development Mr. Fejsal Kirlic, Project Manager Phone: (387-33) 722-300 RS Investment and Development Bank Ms. Slobodanka Dukic, Project Manager Phone: (387-51) 221-270 VERNMENTS INFRASTR COMMUNITY DEVELOPMENT PROJECT GO Objective The main objective of the project is to improve basic community services in the country's less developed areas through investments in local infrastructure and socially oriented projects and programs. OCALL Expected Results The project will improve basic services in less developed local communities, and improve governance, and capacity of local governments for delivery of these services. The project also promotes better partnership between citizens and local governments in investment identification and financing. The project so far financed over 400 investments in local infrastructure and services in less developed parts of the country. World Bank financing: US$ 20 million (IDA Credit) Credit Effective: March 26, 2002 Closing Date: August 31, 2008 26 INFRASTR LOCAL Contacts: World Bank Ms. Vesna Francic Phone: (387-33) 251-504 vfrancic@worldbank.org External GO Mr. Muris Hadzic Ministry of Urban Planing and Environment FBH Phone: (387-33) 667-801 Ms. Fatima Fetibegovic Ministry of Urban Housing, Civil UCTURE VERNMENTS Engineering and Environment RS Phone: (387-51) 215-536 World Bank financing: Credit Effective: Closing Date: US$ 26 million (IDA Credit) October 31, 2002 November 30, 2009 SOLID WASTE MANAGEMENT Objective AND The objectives of the project are to: (i) cost effectively improve solid waste services in participating priority areas; (ii) increase administrative and technical capacity for solid waste management at the local and Entity level; (iii) improve cost recovery in the sector and encourage private sector involvement; and (iv) correct environmental problems and reduce health hazards caused by inadequate waste collection and disposal systems. Expected Results The project will improve solid waste disposal by establishing multi-municipal waste management districts, regional landfill sites, and transfer stations. The project will also help reduce the number of wild dump sites. Additionally, the project will strengthen institutions that manage solid waste services. 27 World Bank financing: AND US$ 25 million (IDA Credit) Credit Effective: February 23, 2005 Closing Date: December 15, 2009 UCTURE URBAN INFRASTRUCTURE AND SERVICE DELIVERY PROJECT Objective The objectives of the project are threefold: (i) improve the availability, quality, and reliability of VERNMENTS basic municipal services, in particular, water supply and sanitation; (ii) strengthen the ability of INFRASTR cantonal, and municipal governments to improve management, and institutional capacity for infrastructure development through Urban Management Development Plans, and, (iii) foster deeper social cohesion, through improvements in living conditions. GO Expected Results Improved quality of water supply and other services in participating areas. Enhanced financial viability, sustainability, management, and institutional capacity of participating utility companies. OCALL Contacts: World Bank Ms. Vesna Francic Phone: (387-33) 251-504 vfrancic@worldbank.org External Ms. Dusanka Divcic Ministry of Foreign Trade and Economic Relations BH Phone: (387-33) 663-713 28 CLOSED PROJECTS INFRASTR EMERGENCY HOUSING REPAIR PROJECT LOCAL Objective The project objectives were: (i) to carry out urgent housing repairs to both publicly and privately owned housing; and (ii) to contribute to the development of a framework to sustain the recovery and development of the housing sector through gradual introduction of cost recovery of repair works. Results GO Housing repairs were completed for a total of over 650 public apartment buildings, benefiting UCTURE VERNMENTS some 17,500 flats in the cities of Sarajevo, Mostar, Gorazde, Olovo, Kupres and Novi Travnik. Financing for these works was provided by the World Bank, the EC, the Netherlands, and UNHCR. Repair works of public apartment buildings and houses were generally located within the UNHCR-designated refugee return areas. Concerning private housing repairs, works carried out with the Dutch funds had been completed by the fall of 1996, leading to repairs of 216 private houses in three cities. Under Saudi fund financing, 1,650 houses were repaired. Using remaining Saudi funds, as well as funds provided by Italy and UNHCR, the project implementation unit repaired another 790 private houses. World Bank financing: Credit Effective: Closing Date: US$ 15 million (IDA Credit) August 1, 1996 June 30, 1998 Contact: Ms. Vesna Francic; Phone: (387-33) 251-522; vfrancic@worldbank.org EMERGENCY PUBLIC WORKS AND EMPLOYMENT PROJECT Objective AND The project was one of the World Bank's first investment projects under the overall framework of the Priority Reconstruction and Economic Recovery Program. The project development objectives were to: (i) create rapid employment for those unemployed as a result of the war; (ii) rehabilitate small-scale public infrastructure and clean-up war-damaged public property; (iii) reinforce the decision-making role and responsibilities of municipal governments in municipal infrastructure project design and management; and (iv) deliver visible impact at the local level in the near term. Results In the Federation BH, 450 projects were completed for a total value of KM 28.14 million, creating 30,636 manmonths of employment. A total of 79 municipalities (97.5% of total) received financing under the project. Priority was given to the most war-affected areas and areas where refugees were returning. 248 projects were linked to refugee return. In Republika Srpska, 145 projects were completed for a total value of KM 15.5 million, creating 15,278 manmonths of employment. A total of 56 municipalities (80% of total) received financing. 136 projects were linked to refugee return. The type of projects financed ranged from the cleaning of war damage to rural road repair to repairing water systems and power lines. World Bank financing: Credit Effective: Closing Date: US$ 10 million (IDA Credit) August 1, 1996 June 30, 2000 29 Contact: Mr. Goran Tinjic; Phone: (387-33) 251-518; gtinjic@worldbank.org LOCAL DEVELOPMENT PILOT PROJECT Objective The project development objectives were to: (i) strengthen the institutional and financial capacity AND of local governments to provide improved municipal infrastructure and services in response to citizen demand, and (ii) initiate, on a pilot basis, the development of a municipal credit market to provide a long-term source of financing for creditworthy municipalities for infrastructure investments. UCTURE Results The first key achievement of the project was an improved ability of the participating local governments to identify and design priority projects, and to make sound capital investments. In contrast with immediate post-conflict reconstruction phase, when massive investments in infrastructure were made with little attention to building capacity of local governments as promoters of local development, this project aimed at changing the mind-set of the local governments from bystanders to creators of preconditions for growth in their respective areas. The prospect of obtaining a loan created an incentive for local governments to strengthen their institutional and financial capacity so as to meet the requirements of lenders in order to borrower for improved municipal infrastructure and services. 28 loans were made to municipalities by participating commercial banks. VERNMENTS World Bank financing: Credit Effective: Closing Date: INFRASTR US$ 15 million (IDA Credit) September 1, 1999 May 31, 2005 Contact: Mr. Goran Tinjic; Phone: (387-33) 251-518; gtinjic@worldbank.org GO MOSTAR WATER SUPPLY AND SANITATION PROJECT Objective The two major objectives of the project were: (i) to create a unified water supply and sanitation utility for the city of Mostar; and (ii) to improve water supply and sanitation service. OCALL Results Mostar Water Supply Utility was reunited and fulfilled one of the core objectives of the project. In addition, tariffs were harmonized for all citizens of Mostar for the first time since the war. Project achievements include: construction of the reservoires and water distribution schemes at Humi I and Gradina; improvement of water supply network at Orlac, and Humi II; reconstruction of Rades and Radobolja water supply system; rehabilitation of sewer and water supply networks in the Old Town within the framework of the reconstruction of the Old Bridge; installation of the hydraulic modeling software; and installation of the new software for business information system to harmonize two different accounting systems. World Bank financing: Credit Effective: Closing Date: US$ 12 million (IDA Credit) December 12, 2000 June 30, 2005 30 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org PILOT CULTURAL HERITAGE PROJECT INFRASTR LOCAL GO UCTURE VERNMENTS Objective The project's development objective was "to improve the climate for reconciliation among the peoples in BH through recognition and rehabilitation of their common cultural heritage in Mostar". Further, "reconciliation among the peoples was described as a prerequisite for economic revitalization and social cohesion in the country's post conflict situation". A special dimension of the stated objective was that it was "to be pursued through a unique cultural support partnership that included the local community, national and regional governments, UNESCO, the World Monuments Fund (WMF), and the Aga Khan Trust for Culture (AKTC)". Results AND The reconstruction and re-opening of the Old Bridge contributed to the reconciliation of war- divided people living on the banks of Neretva river. Mostar residents from both banks now meet again in the Old Town to attend concerts, exhibitions and various other cultural events. In addition to rebuilding the graceful arch of the bridge and its towers, the project restored other damaged monuments helping to preserve the character of Mostar's historic cobble-stoned Old Town. Tourism has picked up, boosting the local economy. Even before the bridge's reconstruction, the war-shattered and ethnically divided town of Mostar was visited by 20,000 -25,000 tourists every year, coming to see the historic bridge's broken span. Some 300,000 tourist visits were registered in 2004, 450,000 in 2005 and 750,000 in 2006. Tourism has triggered new construction, the opening of new hotels, restaurants and pubs, and other businesses in Mostar and its surroundings. In July 2005, Mostar's Old Bridge and surrounding Old Town were registered on UNESCO's list of historic monuments. World Bank financing: Credit Effective: Closing Date: US$ 4 million (IDA Credit) December 3, 1999 December 31, 2004 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org 31 RECONSTRUCTION ASSISTANCE PROJECT Objective AND The project was designed to address some of the most urgent post conflict reconstruction needs in Republika Srpska. The project had four primary objectives: (i) assist economically-disadvantaged and war-affected farmers restart and strengthen their farming activities; (ii) increase the quality and quantity of habitable public housing stock; (iii) restore water, sanitation and solid waste services to a level that would satisfy basic human needs, mitigate public health risks and support the restart of UCTURE economic activity; and (iv) improve the reliability, availability and quality of electricity supply. Results A total of 180 apartment buildings benefited some 4000 flats in fourteen municipalities were repaired, utilizing World Bank, Japanese and the Netherlands financing. 55 tractors were purchased and delivered to farmers. 336 land-cultivators were distributed to farmers in seven municipalities (Italian TF). Under IFAD-financing, 3,876 heifers and 7,218 sheep had been imported and distributed in 1998 and 1999. Water supply services were improved in 14 municipalities. Garbage trucks and waste collection containers were provided to 11 municipalities. Six power stations and transmission lines were rehabilitated. Telecommunication systems in the distribution network and new information system were rehabilitated and installed. VERNMENTS INFRASTR World Bank financing: Credit Effective: Closing Date: US$ 17 million (IDA Credit) April 17, 1998 March 31, 2001 GO Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org WATER, SANITATION AND SOLID WASTE URGENT WORKS PROJECT LOCAL Objective The project aimed to rapidly improve water, sanitation and solid waste services and remove risks to public health. Results This emergency project, supported by the World Bank and several other donors, financed 58 contracts for civil works and provision of equipment for a total value of US$ 20.9 million. The project improved water, sanitation and solid waste services in 26 participating municipalities. World Bank financing: Credit Effective: Closing Date: US$ 20 million (IDA Credit) May 1, 1996 June 30, 1999 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org 32 CLOSED PROJECTS PRIV BUSINESS ENABLING ENVIRONMENT ADJUSTMENT CREDIT Objective The objective of this project was to improve the investment climate and promote domestic and foreign investment and private sector growth. Objectives of the reform program supported by this credit were to reduce those administrative and regulatory barriers that would have the most critical near-term impact on the three phases of business development: business entry, business operations, and business exit. ATE Results BAC provided direct budget support in exchange for reforms that improved the business environment. The first tranche of the credit worth US$ 20 million was disbursed in 2002. The second tranche was disbursed in December 2007. Legislative and institutional enhancements achieved under this project contributed to SECT the reduction of burden to businesses. Electronic business registration system was established bringing the overall number of days required to start business operations down from 80 days in 2002 to 29 days in 2007. Streamlined entity inspections reduced the average number of inspection days per business down to 9.94 in the Federation BH and 7.46 in the RS (as per a May 2007 survey of 210 firms). Changes and amendments to the bankruptcy and liquidation laws, establishment of the Registry of Movable Pledges, strengthening of FIPA and abolishment of obligatory membership in the chambers of commerce were also OR achieved under the framework of BAC. World Bank financing: Credit Effective: Closing Date: DEVEL US$ 44 million (IDA Credit) August 15, 2002 December 15, 2007 Contact: Mr. Haris Mesinovic; Phone: (387-33) 251-533; hmesinovic@worldbank.org EMERGENCY INDUSTRIAL RESTART PROJECT Objective The objective of the project was to help restart industry and production in BH by attracting foreign private OPMENT finance to restart viable parts of the BH industrial and commercial sector and thereby assist in restoring employment and production during a period when BH was struggling to gain a measure of political stability in the immediate aftermath of a destructive war. The objective included assisting BH enterprises to re- establish links with foreign partners thereby diversifying their sources of supply and improving their access to markets. Results During the life of the project, 26 guarantees/ insurance policies were issued totaling KM 39,627,235 in support of enterprise development and to attract new investment to BH. A new corporation owned by BH was created called the Investment Guarantee Agency (IGA). The project involved partnership arrangements with external institutions; firstly ING Bank of Amsterdam which backed up the obligations of IGA under issued guarantees with standby letters of credit which were fully cash backed using funds from the World Bank credit and grant funds from the other donors, and later with private market insurance companies from Lloyd's of London who also had the benefit of access to funds under the credit and from donors to pay claims but who in return agreed to issue policies of insurance for values up to four times the amount of the available World Bank and donor funds. World Bank financing: Credit Effective: Closing Date: US$ 10 million (IDA Credit) March 1, 1997 December 31, 2003 33 Contact: Mr. Loyd Edgecombe; Phone: (1-202) 458-5982; ledgecombe@worldbank.org EMERGENCY PILOT CREDIT PROJECT(RS) Objective The primary objectives of the project were to: (i) restart and expand private enterprise activities in Republika Srpska by way of resource transfer through medium-term loans from commercial banks; and (ii) improve credit management capacity and loan administration skills of banks in the RS, laying the foundation for more ambitious banking reforms under subsequent privatization-related projects. Results OPMENT 115 loans totaling KM 15.5 million were approved. These loans were extended to private enterprises in 25 towns and villages and had a significant demonstration effect. Financing extended under the project covered most of the economically important sectors in the RS including: wood processing, floors and furniture; light industry with textiles, leather, garments and footwear; building materials, doors, windows, chemicals and detergents, plastic, rubber and glass products. Food production and processing was represented with animal and chicken food, meat and poultry, eggs, milk and milk products, mushrooms, herbs, and food processing. About half of the approved sub-projects had an export development component concerning countries which originated from the former Yugoslavia, and 20% were expected to export to the European DEVEL Union. The sub-projects significantly increased output and profitability of the final beneficiaries by an average of 80%. About 500 new permanent jobs were created. World Bank financing: Credit Effective: Closing Date: US$ 5 million (IDA Credit) August 1, 1998 June 30, 2000 OR Contact: Phone: (387-33) 251-500; mail_to_bosnia@worldbank.org ENTERPRISE AND BANK PRIVATIZATION ADJUSTMENT CREDIT Objective SECT The overall development objective of the credit was to help initiate the privatization process for enterprises and banks in BH. To meet this overall objective, the credit was to help the Govemment implement the first phase of a privatization program, which consisted of establishing the necessary legal and institutional framework and privatizing selected enterprises and banks. TEA Results This budget support credit facilitated essential legislation for the privatization of banks and enterprises and by the end of 2002 all state-owned banks in the RS and the Federation BH were privatized (over 95% of banking assets in both Entities). Small-scale privatization was also essentially completed in both the RS and the Federation BH. Securities Commissions were established in both entities and have licensed and were PRIV supervising Privatization Investment Funds, a vehicle for mass privatization. Stock exchanges were operating in both entities. Bank supervision agencies were established to actively monitor their respective banking sectors. A state-level Deposit Insurance Agency became fully operational in October 2002. World Bank financing: Credit Effective: Closing Date: US$ 50 million (IDA Credit) September 29, 1999 May 31, 2002 34 Contact: Phone: (387-33) 251-500; mail_to_bosnia@worldbank.org PRIV LOCAL INITIATIVES PROJECT Objective The project objectives were to: (i) provide access to credit to economically-disadvantaged and war- affected, specifically low-income micro-entrepreneurs who had no access to credit from the commercial banking sector; (ii) facilitate the development of independent, financially-viable micro-finance institutions that will provide credit to low income entrepreneurs over the long-term; (iii) create an appropriate legal ATE environment for the provision of credit and savings services to low-income entrepreneurs Results SECT The project has achieved the following results: 129,807 loans disbursed to micro-entrepreneurs throughout the country helping to create or sustain over 180,000 jobs. Total number of active clients was 29,486. Portfolio at risk in June 2002 was 0.71% (30 days past due). 50% of borrowers were women. 26% of borrowers were displaced persons and returning refugees. The law on microcredit organizations (MCOs) was adopted in both entities. OR World Bank financing: Credit Effective: Closing Date: US$ 7 million (IDA Credit) March 1, 1997 June 30, 2000 DEVEL Contact: Phone: Mr. Goran Tinjic; (387-33) 251-518; gtinjic@worldbank.org LOCAL INITIATIVES PROJECT II Objective Building on the achievements of the first Local Initiatives Project which helped kick-start the development of the microcredit sector in BH, the Second Local Initiatives (Microfinance) Project was to increase the scale, financial viability and social impact of microcredit services. In this regard, the overall development OPMENT goal of the project was to address the urgent need to raise incomes, develop businesses and create jobs, through provision of credit and other financial services to low-income people. Specifically, the project was to: (i) finance the growth and institutional development of high-performing microfinance institutions; and (ii) support the transition of the microfinance sector towards sustainable sources of financing. Results The project has significantly influenced a large pool of entrepreneurial poor, and had a positive impact on clients' businesses and employment (impact assessment showed that microcredit services helped create and/or sustain more than 200,000 jobs), and has further strengthened institutional capacity of partner MCOs to provide high-quality credit services to low-income clientele. New law on MCOs was adopted in both entities allowing for further development of the sector. World Bank financing: Credit Effective: Closing Date: US$ 20 million (IDA Credit) March 26, 2002 June 30, 2005 Contact: Mr. Goran Tinjic; Phone: (387-33) 251-518; gtinjic@worldbank.org 35 ENTERPRISE EXPORT FACILITY PROJECT Objective The primary objective of the project was to support sustainable economic growth by facilitating and expanding viable export activity thereby reducing the economy's dependence on aid. OPMENT Results The primary objective of the project, to support sustainable economic growth by facilitating and expanding viable export activity was achieved in a most satisfactory manner. The project was estimated to have supported exports valued at EUR 275 million. World Bank financing: Credit Effective: Closing Date: US$ 12 million (IDA Credit) October 1, 1999 December 31, 2004 DEVEL Contact: Mr. Loyd Edgecombe; Phone: (1-202) 458-5982; ledgecombe@worldbank.org OR PRIVATE SECTOR CREDIT PROJECT Objective The principal objective of the project was to promote the private sector development by improving access to finance for the private sector in Republika Srpska. In addition, the project was expected to play an active SECT role in shaping the development of the banking sector and markets in Republika Srpska. Results The project has effectively fulfilled its objectives. It has improved access to term credit for investment and TEA working capital finance for the private sector, both by providing IDA funding and by improving banks' capacity to appraise and manage the credit risk. Investments financed by the project have increased the earnings and profitability of private enterprises, as well as their employment and income generation capacity. The banks were encouraged to focus on less developed regions. In many cases, the impact of the project was further enlarged through spill-over and demonstration effects. Better management of credit risk has increased banks' self-confidence and thus willingness to extend credit from their own funds, further increasing the beneficial effects of the project. Reduction of credit losses, due to more effective management of credit risk, was another beneficial factor allowing/contributing to the reduction of interest rates and better PRIV credit terms for the private sector. World Bank financing: Credit Effective: Closing Date: US$ 10 million (IDA Credit) June 17, 2002 June 30, 2005 Contact: Phone: (387-33) 251-500; mail_to_bosnia@worldbank.org 36 PRIV ATE PRIVATIZATION TECHNICAL ASSISTANCE PROJECT Objective SECT The objective of the project was to help accelerate large scale privatization through the tender sale of state -owned enterprises.Specifically the project was to: (i) assist in the tender sale of state-owned enterprises; (ii) help prepare the legislative and regulatory frameworks required for divesting utility and other monopoly companies that deliver public services (such as communications, water, gas, district heating, waste collection and disposal, railways, etc); (iii) render holding companies and large enterprises privatizable by "unbundling" them and performing preparatory steps so that they could attract potential buyers as separate OR entities; and (iv) help bring voucher privatization to a successful conclusion by setting up a transparent and regulated market place for future shareholders. Results DEVEL Project objectives were met only partially and significant portion of the credit remained undisbursed. However, the institutions and the know-how to proceed with privatization were strengthened and could lead transparent process provided that there is political will. World Bank financing: Credit Effective: Closing Date: OPMENT US$ 19.8 million (IDA Credit) May 31, 2002 August 31, 2006 Contact: Mr. Haris Mesinovic; Phone: (387-33) 251-533; hmesinovic@worldbank.org 37 ACTIVE PROJECTS OR World Bank financing: US$ 15 million (IDA Credit) Credit Effective: April 16, 2007 SECT Closing Date: March 31, 2011 LAND REGISTRATION PROJECT Objective The project seeks to facilitate the orderly development of transparent land markets, through the registration PUBLIC of real estate rights, and complementary policies that enable transactions to be made with security and efficiency. It will help remove current impediments to investments in urban areas, and, also prod property titles in rural areas. Expected Results As a result of the project, there will be a reduction in the time it takes to register transactions and an increase in the number of registered transactions. The amount of money borrowed by mortgagors may increase if other factors in the banking sector and general economy continue progressing. Both registration and cadastre systems will be available 'on-line' to the professional community and for general enquiries by the public. Customer satisfaction surveys will be used to confirm that systems operate transparently and efficiently. Contacts: World Bank Ms. Mirjana Karahasanovic Phone: (387-33) 251-522 mkarahasanovic@worldbank.org External Ms. Ediba Tafro Ministry of Justice FBH Phone: (387-33) 213-151 ext. 253 Mr. Dusko Radosevic Ministry of Justice RS Phone: (387-51) 339-349 38 d.radosevic@mpr.vladars.net CLOSED PROJECTS PUBLIC ECONOMIC MANAGEMENT STRUCTURAL ADJUSTMENT CREDIT (EMSAC) Objective The objective of the project was to support fiscal policy reform program for the transition from post-conflict and aid-dependency to self-sustained growth. The project was specifically aimed at: (i) reducing the excess burden of government in the economy while increasing expenditure efficiency; and (ii) improving financial and budgetary management in the public sector. SECT Results Project objective was only partially achieved and only the first tranche of the credit in the amount of US$ 10.6 million was disbursed in December 2004, while the second tranche in the amount of US$ 23.4 million was cancelled in December 2006. However, the project helped intensify policy dialogue on public spending efficiency and many activities envisaged under the project have been implemented recently (for example law on internal audit). OR World Bank financing: Credit Effective: Closing Date: US$ 34 million committed June 15, 2004 December 31, 2006 US$ 10.6 million disbursed (IDA Credit) Contact: Mr. Orhan Niksic; Phone: (387-33) 251-500; oniksic@worldbank.org PUBLIC FINANCE STRUCTURAL ADJUSTMENT CREDIT Objective The primary objective of the project was to support the transition from reconstruction to the restoration of sustained growth. The main policy areas supported by the project included: (i) ensuring financing of the State through the preparation and adoption of consistent 1998 budgets of the State and Entity Governments and through the development and implementation of a transfer mechanism that would provide a regular and predictable flow of funds to the State budget for meeting its obligations; (ii) the creation of policy and institutional foundations for sound external debt management at the State and Entity levels as well as an external debt servicing mechanism through the State;( iii) administrative reforms to improve efficiency and transparency of government budgetary operations at both the State and Entity levels; (iv) initiation of reform and harmonization of tax policies and administration within BH; and (v) initiation of reform in the pension system. Results The project met most of its key objectives and substantially achieved its development impact. The PFSAC marked both the beginnings of policy dialogue between the State and the Entities as well as between the Entities themselves, and coordinated implementation of policy reforms by the State and the Entity governments. These achievements enabled the authorities to deepen and extend the PFSAC reforms under each component through the follow-up operation, PFSAC II. World Bank financing: Credit Effective: Closing Date: US$ 63 million (IDA Credit) July 1, 1998 June 30, 1999 39 Contact: Ms. Sebnem Akkaya; Phone: (1-202) 473-2346; sakkaya@worldbank.org PUBLIC FINANCE STRUCTURAL ADJUSTMENT CREDIT II OR Objective The overall objective of the project was to help create conditions for sustainable economic growth through a strengthening of public finances. Reform of public finances was seen as vital to establishing the credibility of policies to undertake successfully the transition to a market economy, complete the recovery from the conflict of 1992-95, and lay the basis for a robust private sector supply response. Strengthened fiscal capacity was also the cornerstone on which country creditworthiness was to be built. SECT Results Inter-entity harmonisation of tax policies and systems was implemented as envisaged with the outcome of higher revenue yields, greater efficiencies and reduced distortions. Intergovernmental financial reforms have clarified the attribution of revenues and improvements in public service delivery have taken place. Pension funds were financially sustainable and more efficiently administered. Reforms in budget management and the establishment of the audit system led to clear results: gains in transparency and accountability, closer relationship between priorities of public policy and budgets. Finally, the entities have adopted improved external debt management systems resulting in more secure budget control and oversight. PUBLIC World Bank financing: Credit Effective: Closing Date: US$ 72 million (IDA Credit) December 3, 1999 December 31, 2002 Contact: Ms. Sebnem Akkaya; Phone: (1-202) 473-2346; sakkaya@worldbank.org TRANSITION ASSISTANCE CREDIT Objective The project was designed to provide quick-disbursing funds for fiscal and balance-of-payments assistance. It was targeted for supporting the establishment of a functioning Federation BH, one of the two Entities that constitute Bosnia and Herzegovina under the Dayton Accords. A viable Federation BH was recognized as a key building block for realizing the ethnic reintegration envisaged by Dayton. The project's purpose was to support two main development objectives: (i) postwar economic reintegration and institution building by the State and Federation BH governments; and (ii) economic and employment growth, by reinitiating economic transformation interrupted by the war in the key areas of enterprise and banking reform. Results The Federation Customs Authority was established as a single institution under procedures established and supervised by European Union advisors. The Federation BH Tax Administration was established, and significant progress in reform of public finances was achieved. The Federation Banking Agency wasn established, and the Federation BH payments system was moving toward unification. A legal framework for privatization of banks and enterprises was presented to the Parliament, and the Federation Privatization Agency wasn established. World Bank financing: Credit Effective: Closing Date: US$ 90 million (IDA Credit) September 5, 1996 December 31, 1996 40 Contact: Phone: (387-33) 251-500; mail_to_bosnia@worldbank.org TRANSPOR ACTIVE PROJECTS ROAD INFRASTRUCTURE AND SAFETY PROJECT Objective The project objectives are to reduce user costs on the priority sections of the trunk and regional roads, to improve road safety, and to modernize road maintenance practices. T Expected Results About 240 km will be rehabilitated during the project period. The project is expected to improve road safety by increasing the quantity and quality of safety outputs (e.g., policing operations, promotional activities, systematic engineering treatment, and data collection). World Bank financing: Credit Effective: Closing Date: US$ 25 million (IDA Credit) not yet effective December 31, 2011 Contacts: World Bank Ms. Vesna Francic Phone: (387-33) 251-504 vfrancic@worldbank.org External Mr. Ljubo Pravdic Road Directorate FBH Phone: (387-33) 213-369 pljubo@jpdcfbh.ba Mr. Mladen Lazendic Road Directorate RS Phone: (387-51) 309-128 mlazendic@putevirs.com 41 T CLOSED PROJECTS EMERGENCY TRANSPORT RECONSTRUCTION PROJECT Objective The project aimed to reconstruct and repair urgent high priority links and services in the transport system, particularly roads, bridges, tunnels, the railways, Sarajevo airport, and urban transport. Results Road sector: World Bank administered funds permitted rehabilitation of 19 road sections, 13 bridges, 2 tunnels and 2 electric locomotives. In addition, 3 bridges and 8 road sections were completed under the TRANSPOR EBRD part of the project. Finally, USAID supported the rehabilitation of about 20 local road sections. Overall, about 1,300 km of the main and regional networks and about 40 bridges were rehabilitated. Railways sector: the Railway Commission was established and passenger traffic was developing, notably between Sarajevo and Capljina. However, travel speed remained at about 50km/h on average. Civil aviation sector: the runway of the Sarajevo airport was repaved and the control tower rehabilitated. Urban transport sector: around 150 buses and mini-buses were delivered, as well as spare parts and workshop equipment. . World Bank financing: Credit Effective: Closing Date: US$ 35 million (IDA Credit) June 1, 1996 June 30, 1999 Contact: Ms. Mirjana Karahasanovic; Phone: (387-33) 251-522; mkarahasanovic@worldbank.org EMERGENCY TRANSPORT RECONSTRUCTION PROJECT II Objective The project had five main objectives: (i) removing critical infrastructure bottlenecks; (ii) resuming operation on the major transport networks; (iii) ensuring sustainable development of the transport sector and related institutions; (iv) rebuilding the local contracting and consulting industry; and (v) supporting Republika Srspka economic program. Results Works were completed on twelve road sections and six bridges in the Federation BH, and ten road sections and 2 bridges in Republika Srpska. Fifteen tipper trucks have also been delivered to Republika Srpska. World Bank financing: Credit Effective: Closing Date: US$ 39 million (IDA Credit) September 1, 1997 June 30, 2000 Contact: Ms. Mirjana Karahasanovic; Phone: (387-33) 251-522; mkarahasanovic@worldbank.org 42 TRANSPOR ROAD MANAGEMENT AND SAFETY PROJECT Objective The project's development objective was to improve traffic flow and reduce accident rates on the country's road network through rehabilitation of priority road sections associated with identified poor road condition and accident "black spots." Results T As planned, over 520 km of roads were rehabilitated with high economic rates of return. Traffic on the sections increased moderately and travel times were reduced. In the Federation BH, fatal and injury accidents reduced from 6,216 in 2002 to 4,914 in 2006. The total accident rate per 10,000 vehicles reduced from 5.11 to 4.43 over the same period. In Republika Srpska, fatal and injury accidents reduced from 2,381 in 2002 to 2,139 in 2006. The total accident rate per 10,000 vehicles reduced from 6.4 to 5.6 over the same period. World Bank financing: Credit Effective: Closing Date: US$ 30 million (IDA Credit) October 16, 2002 June 30, 2007 Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org 43 T TRADE AND TRANSPORT FACILITATION IN SOUTHEAST EUROPE PROJECT (TTFSE) Objective The border crossing problem, by its nature, requires coordinated and mutually reinforcing action in many areas. The project therefore aimed to integrate the efforts of the European Commission, Southeast European Cooperative Initiative (SECI) and the World Bank Group for: (i) physical improvements to border crossings, (ii) technical assistance to strengthen the customs administrations, (iii) computerization of procedures at the border crossings and electronic filing of customs declarations, (iv) improved exchange of information between the border control agencies and the business community using a web-site; and (v) training for the business community through seminars and distance learning. TRANSPOR Results Physical reconstruction of border crossings was completed and significant improvement were recorded at pilot sites since then. Entry processing times at Orasje dropped from 92 minutes in February 2003 to 15 minutes in April 2005; at Raca, those dropped from 73 minutes to 16 minutes. At the clearance facility in Grude, 30 percent of trucks were cleared in less than 15 minutes in April 2005. Trade facilitation activities, hosted by the Foreign Trade Chamber and the BIHPRO committee (a public-private committee for trade and transport facilitation) were completed. Training through 48 seminars offered 1,155 participants of SME's to refresh their skills on topics such as Incoterms, methods of payment, business ethics, commercial transaction documents and transport operations. The project supported the establishment of a Distance Learning Course for Road Transport Operators, in partnership with the Chamber and the International Road Transport Union. World Bank financing: Credit Effective: Closing Date: US$ 11 million (IDA Credit) February 22, 2001 September 30, 2005 Contact: Mr. Nikola Kerleta; Phone: (387-33) 251-514; nkerleta@worldbank.org 44 CLOSED PROJECTS SOCIAL SOCIAL SECTOR TECHNICAL ASSISTANCE CREDIT (SOTAC) Objective The overall objectives of the project were the provision of a sustainable system of social protection that targets spending more effectively on the poorest. The project objectives were to be achieved through: (i) strengthening institutional and budgetary mechanisms for development and prioritization of social policy in BH; (ii) improving the policy framework for generation of productive employment; (iii) improving the impact and efficiency of the social safety net, in particular focusing programs on the needs of the poorest; (iv) improving public information and consultation about the objectives and elements of social policy reforms; SECT and (v) strengthening the social statistics base in order to ensure that social policy is formulated on a well- informed basis. Results OR The SOTAC successfully supported social sector reforms by providing essential input to the preparation of the social safety net and cash transfer reform. World Bank financing: Credit Effective: Closing Date: US$ 3.55 million (IDA Credit) April 30, 2001 June 30, 2004 Contact: Mr. Vedad Ramljak; Phone: (387-33) 251-523; vramljak@worldbank.org SOCIAL SECTORS ADJUSTMENT CREDIT (SOSAC) Objective Project objective was to reduce poverty in the most effective manner by increasing social well being and supporting an improved framework for increased incomes and opportunities. Project was intended to achieve this by: (i) supporting development of institutional and budgetary mechanisms for development and prioritization of social protection policy and programs; (ii) improving the policy framework for generation of productive employment opportunities; (iii) initiating improvements in the impact and efficiency of the social safety net, in particular focusing on the needs of the poorest; and (iv) strengthening the social statistics. Results A comprehensive reform of the core Labor law in each Entity was achieved. The reforms which were introduced made labor markets in BH substantially more flexible. The project supported the formation for the first time of social protection commissions in each Entity which developed both budget framework paper inputs and drafted social protection strategies, both of which for the first time include a framework for prioritizing social protection spending, both cross-sectorally and intra-sectorally. The project supported new legislation on unemployment benefits and active labor programs, which were a key elements of the social safety net in BH. The first nationally representative Living Standards Measurement Survey was conducted. World Bank financing: Credit Effective: Closing Date: US$ 20 million (IDA Credit) April 30, 2001 May 31, 2001 45 Contact: Mr. Vedad Ramljak; Phone: (387-33) 251-523; vramljak@worldbank.org OR SOCIAL INSURANCE TECHNICAL ASSISTANCE PROJECT (SITAP) Objective The objective of the project was to strengthen the effectiveness and efficiency of health and pension SECT insurance systems by provision of high quality technical assistance and training to help implement existing reforms and to help design options for future social insurance reforms. Results SITAP made a substantial contribution to improving provider payment mechanisms in primary health care acilities; reform of the Basic Benefit Package; and health facilities rationalization. Consultations, study tours and discussions resulted in commitments by both Entities to improve social and pension insurance mechanisms. However, to date there were limited measurable improvements in effectiveness and efficiency but the real project impacts should be manifested over time as improved policies and practices were implemented. SOCIAL World Bank financing: Credit Effective: Closing Date: US$ 7 million (IDA Credit) October 3, 2003 December 31, 2007 Contact: Mr. Vedad Ramljak; Phone: (387-33) 251-523; vramljak@worldbank.org SOCIAL SECTORS ADJUSTMENT CREDIT II (SOSAC II) Objective The objective of the project was to support reforms in cash transfer, labor programs and social protection towards programs which protect the poorest and most disabled in a fiscally sustainable manner. Results While the project objectives were not achieved and the credit was cancelled in 2006, it triggered some important policy dialogue on targeting of social benefits. SOSAC II agenda is subject of an ongoing policy debate about "need based" vs "right based" allocation of social benefits, that now involves government agencies, associations of veterans, war invalids, civil victims of war, associations of disabled persons, trade unions and employers. 46 CLOSED PROJECTS OTHER EMERGENCY RECOVERY PROJECT Objective This was the first World Bank supported project in BH aimed to (i) help establish the governance structure required by the BH constitution, (ii) help restore BH severely damaged productive capacity, (iii) rehabilitate key infrastructure facilities, and (iv) ease the hardship faced by vulnerable groups in the immediate post-war -MUL period. Results A large number of contracts for a total of US$ 111.0 million were executed under the World Bank funding TISECT and through funds administered by the World Bank. For key government institutions, technical assistance and equipment were provided, including start-up capital and auditing for the establishment of the Central Bank, programs to consolidate the Federation BH and cantonal Privatization Agencies, the Federation BH Banking Agency and the Tax and Custom Administrations. Salary supplements to the State and Federation BH helped the establishment of the administration between February 1996 and February 1997. Repairs to government buildings were completed, including the High Court building, Statistical Agency building, Ministry of Foreign Affairs, Presidency, Palace of Justice, Parliament, Tax and Customs Administration ORAL building, and other buildings totaling US$ 12.5 million. Included are the facilities at Lukavica which were repaired and used as an alternate meeting place for the Council of Ministers. Under the line of credit, by January 1998, 275 loans were approved, for a total of KM 52.2 million. This credit line was then turned over to the Federation Investment Bank. Contracts for a total of US$ 11.8 million of critical imports in the power sector were completed. This included repairs to the Salakovac hydro power plant. The first unit started generation on November 16, 1996, the second in mid-January 1997 and the third in March 1998. In the transport sector, contracts worth US$ 10.7 million for imported construction equipment were completed. Farm inputs components were supplied directly by bilateral donors. Under the Emergency Social Fund, initial funds of KM 28 million covering every municipality in the Federation BH were disbursed, providing 5 quarterly payments to 130,000 poorest households of about KM 37 each. A survey of household income and expenditures carried out throughout the entire Federation BH found that targeting of benefits was appropriate. Foster parents, hosting about 2000 children without parental care, were supported for 12 months. Emergency repairs to orphanages and institutions for disabled valued at US$ 1.1 million were completed. Finally, four sets of contracts for projects to the disabled, totaling 5 million KM were completed, financing emergency assistance, health and rehabilitation treatment, improvement of housing, training, and other programs for the disabled. World Bank financing: Credit Effective: Closing Date: US$ 15 million (IDA grant) March 1, 1996 June 30, 1998 US$ 30 million (IDA Credit) Contact: Ms. Vesna Francic; Phone: (387-33) 251-504; vfrancic@worldbank.org 47 EMERGENCY LANDMINE CLEARANCE PROJECT ORAL Objective The project was viewed as the first phase of a broader Mine Action Program, the objective of which was to reduce as much as possible the uncertainty related to the presence of mines. The objectives were to: (i) establish institutional structures to plan and regulate demining; (ii) protect the most vulnerable groups, primarily through mine awareness programs; (iii) expand BH's mine clearing capacity; and (iv) carry out mine-clearing in support of most urgent reconstruction and recovery and to enable the restoration of essential public services. TISECT Results The project was very efficient in surveying and clearing minefields. Overall, a territory of 6.5 square kms was surveyed and cleared under the project (about 60% of the total surface surveyed/cleared in BH through 1996-1998) while this World Bank financed project expenditure was only 30% of the total resources MUL- spent for demining in the country (about US$22 million). World Bank financing: Credit Effective: Closing Date: US$ 7.5 million (IDA Credit) September 1, 1996 September 30, 1999 Contact: Phone: (387-33) 251-500; mail_to_bosnia@worldbank.org THERO For details about all World Bank financed projects in Bosnia and Herzegovina please visit our web site: www.worldbank.ba/projects&programs 48 "THE BANK AT ITS BEST" 49 Country Assistance Strategy CLE Evaluation Identification CY Completion The Project Implementation and Cycle and Implementation Preparation Supervision Negotiations Appraisal and Board Approval PROJECT 1. How the Process Begins 5. The Negotiation and Approval Phase In low-income countries, the Bank uses the Poverty Reduction After Bank staff members have appraised the proposed project, the Strategy (PRS) approach which involves widespread consultation Bank and the country that is seeking to borrow the funds, negotiate and consensus building on how to boost development. Under on its final shape. Both sides come to an agreement on the terms and this process, a national poverty reduction strategy is prepared by conditions of the loan. Then the Project Appraisal Document (PAD) THE the country, creating a framework for donors to better co-ordinate or the Program Document (PGD), along with the Memorandum of and align their programs behind national priorities. The government the President and legal documents are submitted to the Bank's Board consults a wide cross-section of local groups and combines this of Executive Directors for approval. The appropriate documents are with an extensive analysis of poverty in the country's society and its also submitted for final clearance by the borrowing government economic situation. which may involve ratification by a council of ministers or a country's legislature. Following approval by both parties, the loan agreement is 2. The Identification Phase formally signed by their representatives. Once this has occurred, the loan or credit is declared effective, or ready for disbursement, after The Bank's Country Assistance Strategy (CAS) forms the blueprint the relevant conditions are met, and the agreement is made available for its assistance to a country. In low-income countries, the CAS is to the public. . based on the priorities identified in the country's Poverty Reduction Strategy Paper (as outlined above). The goals outlined in the CAS 6. The Implementation and Supervision Phase guide the priorities of the Bank's lending program and are a useful source of information for interested stakeholders and businesses The implementation of the project is the responsibility of the wishing to identify potential future areas of Bank lending. During borrowing country, while the Bank is responsible for supervision. the identification phase, Bank teams work with the government to Once the loan is approved, the borrowing government, with technical identify projects which can be funded as part of the agreed assistance from the Bank, prepares the specifications and evaluates ANDING development objectives. bids for the procurement of goods and services for the project. The Bank reviews this activity to ensure that its procurement guidelines 3. The Preparation Phase have been followed. If they have, the funds will be disbursed. This part of the process is driven by the country that the Bank is working with and can take anything from a few months to three 7. The Implementation Completion Report years, depending on the complexity of the project being proposed. The Bank plays a supporting role, offering analysis and advice where At the end of the loan disbursement period (anywhere from 1-10 requested. During this period, the technical, institutional, economic, years), a completion report identifying accomplishments, problems, environmental and financial issues facing the project will be studied and lessons learned is submitted to the Bank Board of Executive and addressed - including whether there are alternative methods Directors for information purposes. for achieving the same objectives. 4. The Appraisal Phase 8. The Evaluation Phase Following the completion of a project, the Bank's Operations The Bank is responsible for this part of the process. Bank staff review Evaluation Department conducts an audit to measure its outcome the work done during identification and preparation, often spending against the original objectives. The audit entails a review of the three to four weeks in the client country. They prepare for bank project completion report and preparation of a separate report. Both UNDERST management either Project Appraisal Documents (investment projects) reports are then submitted to the executive directors and the or Program Documents (for adjustment operations) and the Financial borrower. They are not released to the public. . Management team assesses the financial aspects of the project. 50 MORE THAN JUST THE MONEY KNO WLEDGE BANK In addition to financial support for development, the World Bank provides analytic and advisory services that are equally valued by our counterparts. The most relevant pieces of analytic work in Bosnia and Herzegovina are described on the following pages 51 Doing Business 2008 Country: Bosnia and Herzegovina Region: Eastern Europe & Central Asia Bosnia and Herzegovina Income category: Lower middle income Population: 3,908,458 GNI per capita (US$): 2,980.00 www.doingbusiness.org The Doing Business series of annual reports investigate the regulations that affect business activity. Regulations affecting 10 aspects of a business operations (see Table) are measured to analyze economic outcomes, identify needed reforms and determine which ones worked, where and why. The indicators of the time, cost and effort to meet government requirements in business startup, operation, trade, taxation, and closure are used to produce rankings that permit comparison of regulatory environment among very different economies. The latest edition: Doing Business 2008 ranks 178 economies on the ease of doing business based on these 10 indicators of business regulation. . The Doing Business Index is calculated as the ranking on the simple average of country percentile rankings on each of the 10 topics covered in Doing Business 2008. All topics are weighted equally. The ranking on each topic is the simple average of the percentile rankings on its component indicators. The Doing Business data are collected in a standardized way. To start, the Doing Business team designs a survey which is based around a standardized and basic business case to ensure comparability across countries and over time. Surveys are administered through more than 5,000 local experts, including lawyers, business consultants, accountants, government officials and other professionals routinely administering or advising on legal and regulatory requirements, in the course of several (typically 4) rounds of interaction with the Doing Business team and with appropriate checks for reliability and robustness of data. Since 2003 Doing Business has inspired or informed over 113 reforms around the world. BH results in Doing Business 2008 Doing Business 2008 Doing Business 2007 Change in Ease of... rank rank rank Doing Business 105 105 0 Starting a Business 150 147 -3 Dealing with Licenses 150 150 0 Employing Workers 114 115 +1 Registering Property 144 143 -1 Getting Credit 13 12 -1 Protecting Investors 83 81 -2 Paying Taxes 142 143 +1 Trading Across Borders 53 67 +14 Enforcing Contracts 126 125 -1 52 Closing a Business 61 69 +8 PUBLIC EXPENDITURE AND INSTITUTIONAL REVIEW In 2006, the World Bank prepared the Public Expenditures and Institutional Review (PEIR), which was a comprehensive and in depth review of public expenditures and institutions that also offered specific recommendations to improve the efficiency of specific categories of government expenditures. The document has revealed a large degree of fiscal consolidation and stability improvements in recent years. Nevertheless, the document clearly indicated that the level of public expenditures in BH is still high by international comparison and that, in addition, the analysis of expenditure composition by economic categories and functions has revealed a large degree of institutional and expenditure redundancies and inefficient expenditure practices. To a degree, institutional redundancies and related expenditures are a consequence of the complex political structure of BH. However, the analysis also showed that a large degree of existing inefficiencies could be largely improved within the existing constitutional framework. The PEIR has, among other, assessed social, health and pension expenditures, renumeration of public officials and public investments, and analyzed the fiscal implications of planned institution-building to strengthen the capacity of the central government. The document also assessed the outcomes of the associated functional expenditures and has compared both the expenditures and their effects with those of the broader region and OECD countries. www.worldbank.ba/peir 53 ANDUM www.worldbank.ba/cem The World Bank is currently engaged in the development of the Country Economic Memorandum (CEM) for Bosnia and Herzegovina. Two rounds of discussions were held with the authorities at the State and Entity levels in BH, aimed at determining the economic policy areas, where the authorities would want the World Bank to undertake a thorough MEMOR analysis and explore options for policy development. While a number of different topics surfaced out, a few topics were on top of the agenda for both entities and the State. Following internal discussions in the Bank and a second round of discussions with the authorities, two topics were chosen for the study, both under the broad theme of trade, integration, and convergence. The first topic will analyze patterns of trade, make an assessment of BH's revealed competitive advantages and key constraints to growth of most promising export and import-substituting sectors of the BH economy. The second topic will focus on the agriculture sector or, analyzing key constraints to the development of those sub-sectors, where BH has a competitive advantage to increase production for both exports and domestic market. The study will evaluate the functioning of the market for agricultural land and efficiency of government support programs to the sector. ONOMIC EC Y COUNTR 54 PENSIONS IN BH In recent years the World Bank has engaged with the BH authorities on the issue of Pension Insurance through the Social Insurance Technical Assistance Project (SITAP) and the BH Pension System Note a piece of Economic and Sector Work, delivered in 2006. SITAP, which closed in December 2007, had the objective to strengthen the effectiveness and efficiency of health and pension insurance systems by provision of high quality technical assistance and training to help implement existing reforms and to help design options for future social insurance reforms. For the pension insurance component, the project helped develop a policy reform framework for the pension component through consultancy services targeting both policymakers and technicians and via study trips to countries in the region and beyond. Much needed training to the Pension Fund staff in actuarial analysis skills was also provided. BH Pension System Note sought to provide an evaluation of the current pension system and to provide some possible reform options which, inter alia, aim to harmonize parameters across the two entities and remove the most obvious disincentives in the current systems. The particular usefulness of the Note is that it contains a brief overview of the current demographics and charts the implications thereof on the financial status of the pension funds. It also provides projections of the financial and social consequences of today's parameters, while making international comparisons. 55 FUND Y www.worldbank.ba/csf General Information About the Program: The Civil Society Fund complements and facilitates the social development agenda of the World Bank by providing SOCIET grants through Country Offices to civil society organizations. The purpose of the Civil Society Fund is to support activities whose primary objective is civic engagement - to strengthen the voices of the most vulnerable groups and promote the inclusion of a broad array of citizens' initiatives in development policies and processes. Like in all other countries, the Civil Society Fund in BiH is taking place once every year. Initial launch usually takes place in February/ March and competition remains open for at least three weeks. Selection process and distribution of funds is finalized by early May, while winners have to submit their Final Reports by September the follow year . Who and What Can Be Financed Under Civil Society Fund: Only registered non-governmental organizations can receive funds through Civil Society Fund. One organization can CIVIL submit several projects. They will all be reviewed independently. The activity should take place within one year from when the grant is awarded. Selected projects can promote public consensus and local ownership for reforms and for national poverty reduction and development strategies by creating knowledge-sharing networks, building common ground for understanding, encouraging public-private cooperation, and sometimes even diffusing tensions. What Cannot Be Financed Under Civil Society Fund: Civil Society Fund can not fund: private or state companies, organizations or institutions, research programs, formal academic training programs, operational projects, ongoing institutional core support, scholarships, fellowships, study programs, individuals applying on their own behalf, or non-legal entities. . How Much Money Is Being Distributed: Civil Society Fund are usually awarded in the range from US$3,000 to US$7,000 per organization (currency exchange rate). They rarely exceed $10,000 for each grant and they rarely fund more than half of the proposed budget for an activity as this program prefers projects with additional contributions from other sources. . About Selection Process: Civil Society Fund are being awarded following a highly competitive process, which is necessary having in mind the usual high number of applications and limited amount of funding available. Winning projects will be selected by a mixed commission made of representatives of the World Bank as well as non-governmental organizations and youth. 56 Youth Voices Group was established in 2004 as an internal youth consultative body within the World Bank Country Office in BiH. The main purpose of this group of young people, who were selected following a very competitive process, is to ensure that the World Bank financed operations in BiH take into consideration priorities of young people. Activities of the Youth Voices Group are organized through three thematic areas, mirroring the key priorities of youth in BiH: employment; education; youth policy development. Over the last four years, members of the Youth Voices Group provided inputs to several projects in the above mentioned areas and were consulted during desing of the new four year Country Partnership Strategy for BiH. Learn more about the Youth Voices Group at www. yvgbih.com. 57 Here you can find: - Free access to online and print publications and operational documents of World Bank Group, International Institutions, government and NGOs; - Free access to special collection to CD-ROM and Videotapes; - Free access to online information on development research and data; - Free access to online World Bank databases: * World Development Indicators, with more than 600 development indicators, with time series for 208 countries; CENTER * Global Development Finance, with more than 200 debt and financial flows indicators for the 135 countries that report debt to the World Bank; * E-library, providing access to full text books; - Participation in roundtables and similar events, where you can discuss issues and topics you care about. No fee is required to use the PIC services TION e-PIC e-PIC is a new virtual library of the World Bank. Here you can find information on development data, reports, and World Bank activities in Bosnia and Herzegovina and also around the globe. Opening hours: Monday to Friday 9 a.m. to 5 p.m. Address: School of Economics and Business Trg Oslobodjenja 1/III (E-net Center) INFORMA 71 000 Sarajevo Contact: Telephone: (387-33) 251-880 E-mail: bosniapic@worldbank.org http://www.worldbank.ba/pic PUBLIC 58 The World Bank Country Office Bosnia and Herzegovina Fra Andjela Zvizdovica 1/B/17 71 000 Sarajevo, Bosnia and Herzegovina Tel: (387-33) 251 500 Fax: (387-33) 440 108 http://www.worldbank.ba