The World Bank Implementation Status & Results Report Belarus Privatization (P125389) Belarus Privatization (P125389) EUROPE AND CENTRAL ASIA | Belarus | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2010 | Seq No: 8 | ARCHIVED on 12-Feb-2019 | ISR35988 | Implementing Agencies: National Agency for Investment Promotion and Privatization, National Agency for Investment Promotion and Privatization Key Dates Key Project Dates Bank Approval Date: 19-Mar-2010 Effectiveness Date: 22-Dec-2010 Planned Mid Term Review Date: 15-Aug-2019 Actual Mid-Term Review Date: -- Original Closing Date: 28-Feb-2015 Revised Closing Date: 15-Aug-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to provide the Recipient with necessary legal and institutional instruments and implementation capacities to successfully launch and roll-out a privatization program that is both on par with international best practice and tailoredto the particular industry/business. At the same time the World Bank will be provided with the appropriate funding to provide dedicated TA and supervision. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project's main achievements include the following: 1. The National Agency for Investment and Privatization (NAIP) reported that all twelve State-Owned enterprises assigned to the project have been prepared for privatization/restructuring with assistance from three internationally recognized Financial Advisers. NAIP launched formal tenders for ten companies. Tenders for two companies were not launched in spite of the facts that tender documents were prepared and marketing and advertising were fully performed for the following reasons: (a) for one company the interest of strategic partners was not recorded and (b) for the other, the authorities needed additional time to make sure that this company was the right choice for pilot privatization project. 2. The Grant Agreement under the Austrian Trust Fund between the WB and the Republic of Belarus is extended till August 15, 2019. 3. On the request of the Cabinet of Ministers, Agency has developed an atlernative restructuring/privatization method based on investment proposal rather than purchase offer made by strategic investors. The model included a mechanism for strategic investors to enter the 2/12/2019 Page 1 of 5 The World Bank Implementation Status & Results Report Belarus Privatization (P125389) statutory fund of pilot privatization enterprises by establishing joint ventures. Detailed guidelines on using the method was prepared so as other investors will be able to benefit from it. 4. Presidential Decree 78, issued on February 23, 2016 authorizes valuation of companies at market prices, a project recommendation. 5. Though no successful investment attraction transaction took place to-date for the reasons beyond NAIP's authority, the project helped to clarify division of responsibilities among relevant authorities in charge of investment attraction transactions and sequence of actions to complete such transactions. It is important to note that several SOEs prepared for investment attraction transactions under the project have implemented recommendations made by recruited Financial Advisers and improved their performance by either restructuring or diversifying their products. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Moderate Moderate Environment and Social -- Low Low Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes NAIP to establish a method for transparent and unbiased investment attraction transaction IN00669736 ►Belarus legislation to recognize a transparent and unbiased investment attraction method developed under the project for all SOEs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 12.00 12.00 Date 31-Jan-2011 -- 15-Aug-2019 15-Aug-2019 2/12/2019 Page 2 of 5 The World Bank Implementation Status & Results Report Belarus Privatization (P125389) Belarus government to fund NAIP after the project's closing date in order to apply the developed method Comments: for SOEs which are not included into the project.g IN00588157 ►Number of enterprises prepared for sale in accordance with international best practice (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 8.00 Date 05-Sep-2011 11-May-2016 11-May-2016 31-Jul-2016 IN00588160 Shares of a selected pilot privatization enterprise to be valuated at a market price (not in line with the recommended national valuation method) (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 IN00588167 two SOEs from original list were retendered. Their shares were evaluated at a market price, per new decree #78 (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 2.00 Overall Comments PDO NAIP to establish a method for transparent and unbiased investment attraction transaction which is in line with international best practice and does not contradict relevant Belarusian legislation. Intermediate Results Indicators by Components Providing Assistance and Institutional Capacity Building for Privatization Transaction Delivery IN00588213 ►Number of additional enterprises prepared for investment attraction transactions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 26-Oct-2017 18-Apr-2018 18-Apr-2018 01-Aug-2018 IN00588159 ►Number of Financial Advisers to be hired for additional enterprises (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 12-May-2016 12-May-2016 12-May-2016 22-May-2017 IN00588158 ►Number of financial advisers contracted to prepare pilot privatization enterprises for sale (Number, Custom) 2/12/2019 Page 3 of 5 The World Bank Implementation Status & Results Report Belarus Privatization (P125389) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 05-Sep-2011 05-Oct-2015 05-Oct-2015 16-Aug-2016 IN00669734 ►Number of selected SOEs prepard for investment attraction transaction based on a transparent and unbiased method (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 12.00 12.00 Date 31-Jan-2011 -- 15-Aug-2019 15-Aug-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P125389 TF-98603 Effective USD 4.60 4.60 0.00 4.20 0.40 91% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P125389 TF-98603 Effective 21-Dec-2010 22-Dec-2010 22-Dec-2010 28-Feb-2015 15-Aug-2019 Cumulative Disbursements 2/12/2019 Page 4 of 5 The World Bank Implementation Status & Results Report Belarus Privatization (P125389) Restructuring History Level 2 Approved on 24-Nov-2014 ,Level 2 Approved on 27-Jul-2016 ,Level 2 Approved on 28-Jun-2018 Related Project(s) There are no related projects. 2/12/2019 Page 5 of 5