Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) Municipal Services Improvement (P096481) EUROPE AND CENTRAL ASIA | North Macedonia | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Investment Project Financing | FY 2009 | Seq No: 23 | ARCHIVED on 06-Apr-2019 | ISR36466 | Implementing Agencies: Former Yugoslav Republic of Macedonia, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 26-Mar-2009 Effectiveness Date: 04-Aug-2009 Planned Mid Term Review Date: 05-Oct-2019 Actual Mid-Term Review Date: -- Original Closing Date: 30-Nov-2014 Revised Closing Date: 31-Mar-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve transparency, financial sustainability and delivery of targeted municipal services in the participating municipalities. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Municipal Investments:(Cost $64.25 M) Component B: Capacity Building and Institutional Reform:(Cost $2.95 M) Component C: Performance-Based Investment Grants:(Cost $5.60 M) Component D: Project Management, Monitoring and Evaluation:(Cost $2.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status and Key Decisions Project implementation continues progressing well. Overall, the Project is on track to achieving its Development Objectives. To date the Ministry of Finance signed 77 sub-loan agreements with 57 municipalities under the MSIP component of Municipal Investments (sub- loan component) for a total of 90 subprojects (some municipalities signed more than one sub-loan agreement, and some of these agreements cover more than one sub-project) to finance the priority municipal infrastructure such as water supply and sanitation, solid waste management, local roads, and energy efficiency improvements for municipal buildings. 82 sub-projects financed from these sub-loans have already been successfully completed, while others are at different stages of implementation. 4/6/2019 Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) In response to request of the Ministry of Finance, the MSIP closing date was extended for 12 months from March 31, 2019 to March 31, 2020 to allow for an additional number of eligible municipalities to benefit from the performance grants and fully utilize the Project funds committed for the MSIP Performance-based Investment Grants Component. It is estimated that this extension would allow for implementation of up to 41 more performance grant-financed subprojects for eligible municipalities, in addition to 29 municipalities that were confirmed to meet the grant eligibility criteria as of October 2018 and were already benefiting from this component. Implementation of the European Commission (EC)-IPA Funded Rural Investment Window Component which provides grants to improve rural infrastructure services is also proceeding successfully with all activities expected to be completed by the end of March 2019 with grace period of 4 months provided afterwards to execute payments for the completed activities. All 78 municipalities eligible for receiving EU-IPA grants submitted their proposals under the Call for Proposals (closed on April 6, 2015). The component supports implementation of activities under 83 IPA grant agreements that are signed with 78 eligible municipalities for a total number of 133 subprojects (some municipalities signed more than one IPA grant agreement). Main types of sub-projects submitted under EU-IPA window include construction, reconstruction and rehabilitation of local roads and public buildings, improvement of water supply and sewerage, green markets, and kindergartens. The savings accumulated under EU-IPA financed component after completion of all planned IPA grant financed subprojects and TA activities will be used for the centralized procurement and installment of photovoltaic systems for public buildings (schools, kindergartens, water treatment plants, municipal buildings, etc.) in four poorest regions in Macedonia (North-Eastern Region, Polog, South-West Region and Easter Region), plus municipality of Resen from Prespa Region. Furthermore, a portion of EU IPA window funds that remained available under IPA window after the award of the photovoltaics contract will be utilized for purchase of multi-functional backhoe loaders for the poorer municipalities per planning regions. Some of the MSIP accomplishments to date include: more than 16,300 piped household water connections that benefited from rehabilitation works under the MSIP; more than 524 thousands people provided with access to regular solid waste collection. The Project also contributed to improvement of 146 km of local roads (1.7% of the total local roads network in the country) and is expected to reach the target value of 209 km improved local roads by the MSIP closing date. All project participating municipalities/utilities publishing their budget information on their websites, and 86 percent of participating municipalities report revenue increase of cost savings resulting from the implemented subprojects. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and Sustainability -- Moderate Moderate Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Low Low Other -- -- -- Overall -- Low Low Results PDO Indicators by Objectives / Outcomes To improve transparency of targeted municipal services in the participating municipalities IN00685472 4/6/2019 Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) ►Percentage of participating municipalities that regularly publish benchmarks & sub-project progress information on their municipal or CSE’s websites, and on PMU’s Project portal (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 To improve financial sustainability of targeted municipal services in participating municipalities IN00685473 ►Improved financial performance as reflected by the percentage of participating municipalities achieving increased revenue earnings and/or cost savings in completed sub-project. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 86.00 86.00 86.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685475 ►Nb of particip.municip. implementing institutional dvpt reforms contributing to PDO, as evidenced by nb of municip. that meet 4 or more of the 7 perform. criteria (ie that qualify for perform. grants) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 29.00 43.00 50.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 To improve delivery of targeted municipal services in the participating municipalities IN00685474 ►Piped household water connections that are benefiting from rehabilitation works undertaken by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12,900.00 16,308.00 12,900.00 Date 17-Dec-2011 30-Jun-2018 30-Jun-2018 31-Mar-2020 IN00685491 ►Number of people in urban areas provided with access to regular solid waste collection under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 524,516.00 524,516.00 524,516.00 Date 14-May-2010 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685492 ►Percentage of participating municipalities achieving targeted improvements in delivery of selected services in completed sub- projects (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 86.00 86.00 86.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 4/6/2019 Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) Intermediate Results Indicators by Components Component A: Municipal Investments IN00685494 ►Number of sub-loans signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 76.00 77.00 78.00 Date 26-Mar-2009 12-Oct-2018 31-Dec-2018 31-Mar-2020 IN00685498 ►Number of sub-projects successfully completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 79.00 82.00 90.00 Date 26-Mar-2009 12-Oct-2018 31-Dec-2018 31-Mar-2020 IN00685501 ►Length of improved local road infrastructure as a result of constructed or reconstructed local roads structure under the Project (Meter(m), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 146,509.00 146,509.00 209,000.00 Date 26-Mar-2009 01-Nov-2018 01-Nov-2018 31-Mar-2020 IN00685503 ►Number of people benetited from improved local road infrastructure under the Project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 414,773.00 414,773.00 492,000.00 Date 26-Mar-2009 01-Nov-2018 01-Nov-2018 31-Mar-2020 IN00685506 Number of female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 149,066.00 149,066.00 211,533.00 Date 26-Mar-2009 01-Nov-2018 01-Nov-2018 31-Mar-2020 Component B: Capacity Building and Institutional Reform IN00685495 ►Number of municipalities that qualify for sub-loans (ie meet the eligibility criteria to participate in MSIP) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 57.00 57.00 58.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685499 4/6/2019 Page 4 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) ►Number of participating CSEs and/or municipalities supported by TA activities under Component B (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 57.00 57.00 58.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685502 ►Satisfactory completion of TA contracts with outputs accepted by the clients (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 3 completed satisfactorily, including recent TA to analyse technological options Satisfactory and O&M completion of TA arrangements related Value No TA available -- contracts supported by to wastewater the project with outputs treatment in the rural accepted by the clients areas. One more TA to analyze block grants to municipalities is underway. Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685504 ►Continued and sustained dialogue on institutional reform as evidenced by submission of studies, such as a Strategy for Financial Intermediation for Municipal Investments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 2 input studies completed. Approach on the next steps is Studies to inform and being discussed with contribute to potential the government, municipal finance and including municipal services Value No strategy -- recommendations from reforms are the WB funded undertaken and municipal finance ASA submitted to the that are to be Ministry of Finance presented to the government in May- June 2019. Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685505 ►Percentage of planned beneficiary feedback/citizen engagement activities implemented (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 26-Mar-2009 01-Nov-2018 31-Dec-2018 31-Mar-2020 Component C: Performance-based Investment Grants IN00685496 ►Number of applications to access funds (performance investment grant) under Component C (Number, Custom) 4/6/2019 Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 41.00 49.00 50.00 Date 26-Mar-2009 30-Jun-2018 31-Dec-2018 31-Mar-2020 IN00685500 ►Number of municipalities receiving a performance investment grant (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 26.00 30.00 50.00 Date 26-Mar-2009 30-Sep-2018 30-Sep-2018 31-Mar-2020 Component E IPA Rural Window IN00685493 ►Number of municipalities receiving a grant from IPA window under Component E (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 78.00 78.00 60.00 Date 14-Dec-2014 30-Jun-2018 31-Dec-2018 31-Mar-2019 IN00685497 ►Number of sub-projects successfully completed under Component E (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 76.00 50.00 Date 14-Dec-2014 30-Jun-2018 30-Jun-2018 31-Mar-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096481 IBRD-76990 Effective USD 25.00 25.00 0.00 24.48 0.10 100% P096481 IBRD-81580 Effective USD 50.00 50.00 0.00 33.72 11.54 75% P150342 TF-18812 Effective USD 16.57 16.57 0.00 14.55 2.27 86% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 4/6/2019 Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report Municipal Services Improvement (P096481) P096481 IBRD-76990 Effective 26-Mar-2009 29-Jun-2009 04-Aug-2009 30-Nov-2014 31-Mar-2020 P096481 IBRD-81580 Effective 10-May-2012 07-Jun-2012 10-Jul-2012 30-Nov-2017 31-Mar-2020 P150342 TF-18812 Effective 24-Dec-2014 24-Dec-2014 19-Mar-2015 31-Mar-2019 31-Mar-2019 Cumulative Disbursements Restructuring History Level Approved on 15-Dec-2011 ,Level 2 Approved on 14-Dec-2018 Related Project(s) P129996-ADD'L FINANCING - MUNICIPAL SERVICES IMPROVEMENT PROJECT ,P150342-ADDITIONAL FINANCING - MSIP (EU-IPA) 4/6/2019 Page 7 of 7