The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) Serbia Competitiveness and Jobs (P152104) EUROPE AND CENTRAL ASIA | Serbia | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 6 | ARCHIVED on 26-Sep-2018 | ISR34148 | Implementing Agencies: Public Policy Secretariat, Ministry of Finance, Ministry of Economy, Ministry of Education Science and Technological Development, Ministry of Labor, Employment, Veteran and Social Affairs Key Dates Key Project Dates Bank Approval Date: 16-Sep-2015 Effectiveness Date: 31-Mar-2016 Planned Mid Term Review Date: 11-Dec-2017 Actual Mid-Term Review Date: 11-Dec-2017 Original Closing Date: 30-Jun-2019 Revised Closing Date: 30-Jun-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to improve the effectiveness and coordination of selected public programs to alleviate constraints to competitivenessand job creation, including investment and export promotion, innovation, active labor market programs, labor intermediation, and activation of social assistance beneficiaries. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The PDO is to improve the effectiveness and coordination of selected public programs to alleviate constraints to competitiveness and job creation, including investment and export promotion, innovation, active labor market programs and labor intermediation. Components Table Name Policy planning, monitoring, and coordination:(Cost $3.00 M) Investment and export promotion:(Cost $22.00 M) Innovation:(Cost $39.55 M) Labor:(Cost $30.00 M) Project management and technical assistance:(Cost $5.20 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions 9/26/2018 Page 1 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) Following the Mid-Term Review in December 2017, restructuring of the Project was successfully completed in May 2018 (countersigning of the Amendments to the Loan Agreement was completed only in August 2018, due to change of Minister of Finance). With the restructuring project implementation arrangements were streamlined (by winding down a separate PIU in Ministry of Labor, Employment, Veteran and Social Affairs (MoLEVSA) and consolidating project implementation with the main PIU), implementation schedule of a number of the DLIs was revised, some of the DLIs were adjusted to better reflect Government priorities, and the project closing date was extended. Following the restructuring, a revised Procurement Plan has been adopted by the Inter-Ministerial Working Group (IMWG) and submitted to the Bank for no objection. No objection was issued on September 21. Revised Project Operation Manual was also adopted by the IMWG and submitted to the Bank in the last week of September. The revised POM is currently being reviewed and it is anticipated that the no objection will be issued during October. After delays prior to the restructuring, procurement of TA to support the project should accelerate over the next couple of months. There were no disbursements during the reporting period, however it is anticipated that disbursement request for approximately USD 20 million will be submitted in October, based on meeting various DLIs during the reporting period. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Moderate Sector Strategies and Policies Moderate Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Substantial Substantial Other Moderate Substantial Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve the effectiveness of selected public programs on investment and export promotion IN00570186 ►New investor leads generated by the reformed investment promotion agency (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 23.00 38.00 33.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570187 9/26/2018 Page 2 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) ►Participants in export promotion programs that engage in new export activities (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 85.00 188.00 350.00 200.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 Improve the effectiveness of selected public programs on Innovation IN00570188 ►New collaborations facilitated between research organizations and the private sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 14.00 14.00 25.00 Date 31-Dec-2014 30-Dec-2016 30-Dec-2016 31-Dec-2020 Improve the effectiveness of selected public programs on ALMPs and labor intermediation IN00570196 ►NES registered unemployment cases transitioning into formal job (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 232,280.00 215,712.00 268,497.00 280,000.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 Overall Comments PDO Actual indicator values are as per the latest Progress Report submitted by the PIU in August 2018. This Progress Report covers the July-December 2017 period. Indicator values will be further updated once the new Progress Report is submitted. Intermediate Results Indicators by Components Policy planning, monitoring, and coordination IN00570185 ►Annual performance reviews of pilot policy planning, monitoring, and coordination system (to support competitveness and jobs reforms) (see DL1) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 3.00 Date 01-Jan-2015 30-Dec-2016 29-Dec-2017 31-Dec-2018 Investment and export promotion 9/26/2018 Page 3 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) IN00570163 ►MoE investment and export promotion programs restructured [DLI 2] (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value DLI Table partial DLI achieved partial DLI achieved DLI Table Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570189 ►Number of documented interests by investors (annual) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 61.00 75.00 89.00 90.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00573008 ►Number of firms participating in the new Supplier Development Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 29-Dec-2017 02-Mar-2018 02-Mar-2018 31-Dec-2020 Innovation IN00570190 ►Private financing catalyzed through IF support programs (Ammount USD) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.3m 0.00 1.46 m 3.6m Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570164 ►Enterprises and startups financed through Innovation Fund programs (including MMG) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.00 0.00 40.00 75.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570197 Enterprises and startups financed with female owner (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 0.00 5.00 10.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570165 ►Innovative products or services developed by MG beneficiary firms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 9/26/2018 Page 4 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) Value 16.00 0.00 0.00 25.00 Date 31-Dec-2014 30-Jun-2016 30-Jun-2016 31-Dec-2020 IN00570191 ►Innovative products or services launched by MG beneficiary firms (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 0.00 0.00 10.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570177 ►Technology transfer: IF TTF service lines deployed [see DLI 4] (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 8.00 Date 31-Dec-2014 30-Dec-2016 30-Dec-2016 31-Dec-2020 IN00570178 ►Technology transfer: transactions initiated [see DLI 4] (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 26.00 15.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570176 ►R&I strategy, action plan, RI Roadmap and public research sector reforms including establishment of Science Fund designed and adopted (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value See DLI Table DLI not achieved DLI partially achieved See DLI Table Date 31-Dec-2014 30-Dec-2016 31-Aug-2018 31-Dec-2020 IN00572753 ►Science Fund programs initiated (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 29-Dec-2017 01-Mar-2018 01-Mar-2018 31-Dec-2020 IN00572754 ►Science Fund programs competitive grants awarded (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 29-Dec-2017 01-Mar-2018 01-Mar-2018 31-Dec-2020 IN00570179 ►Citizen Engagement: Innovation matching grant beneficiary annual survey (number of surveys) (Number, Custom) 9/26/2018 Page 5 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 No surveys were conducted in 2017 due to the fact that no call for proposals was held in 2016. Following successful calls for proposals in 2017, a survey is planned in 2018. This will be reflected in the upcoming Comments: Progress Reports. Labor IN00570192 ►NES registered female unemployment cases transitioning into formal job (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 122,491.00 109,457.00 138,152.00 145,000.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2020 IN00570193 ►Number of field visits to employers per year by the NES (Number) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15,927 (field visits) 17,908.00 17,908.00 18,000 Date 31-Dec-2014 30-Dec-2016 30-Dec-2016 31-Dec-2020 IN00570180 ►% of total NES staff that is operating as certified case worker [DLI 6] (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 85.00 Date 31-Dec-2014 30-Dec-2016 30-Dec-2016 31-Dec-2020 IN00570181 ►Standard Deviation of mean case load per branch office over all branch offices [DLI 7] (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 381.00 401.00 401.00 260.00 Date 01-Jan-2015 30-Dec-2016 30-Dec-2016 31-Dec-2020 IN00570194 ►Gross placement rate of NES start-up support program for self-employment 6 months from completion (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 37.00 9.97 90.00 42.00 Date 31-Dec-2013 30-Dec-2016 29-Dec-2017 31-Dec-2020 Reported rate is for gross placement, while baseline and target values are for net placement. Baseline Comments: and target values will be updated to also refer to gross placement rate. IN00570195 9/26/2018 Page 6 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) ►Gross placement rate of NES hiring subsidy program for new employment 6 months from completion (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 41.00 82.09 80.00 46.00 Date 31-Dec-2013 30-Dec-2016 29-Dec-2017 31-Dec-2020 Reported rate is for gross placement, while baseline and target values are for net placement. Baseline Comments: and target values will be updated to also refer to gross placement rate. IN00570182 ►Number of new or re-designed ALMPs in the NES [DLI 8] (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 31-Jan-2014 30-Dec-2016 30-Dec-2016 31-Dec-2020 IN00570183 ►Average effective tax rate for social assistance beneficiary with two children and nonworking spouse transitioning to a half- time minimum wage job [DLI 9] (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 -- 100.00 70.00 Date 31-Dec-2014 30-Dec-2016 30-Dec-2016 31-Dec-2018 IN00570184 ►Citizen engagement: Number of employers reached by client satisfaction and needs survey (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 854.00 973.00 3,000.00 Date 31-Dec-2014 30-Dec-2016 29-Dec-2017 31-Dec-2018 Target for Citizen engagement indicator was not reached due to limitations in available capacity. As part of its regular activities, NES conducts face-to-face employer surveys to measure client satisfaction and needs, however this is done on smaller samples than initially planned due to capacity limitations. NES will Comments: make an effort to increase the number of surveys, aiming to achieve the target number of surveys for 2018. Overall Comments IR Actual indicator values are as per the latest Progress Report submitted by the PIU in August 2018. This Progress Report covers the July-December 2017 period. Indicator values will be further updated once the new Progress Report is submitted. Data on Financial Performance Disbursements (by loan) 9/26/2018 Page 7 of 8 The World Bank Implementation Status & Results Report Serbia Competitiveness and Jobs (P152104) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P152104 IBRD-85280 Effective USD 100.00 100.00 0.00 21.96 78.07 22% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P152104 IBRD-85280 Effective 16-Sep-2015 07-Oct-2015 31-Mar-2016 30-Jun-2019 30-Jun-2021 Cumulative Disbursements Restructuring History Level 2 Approved on 10-May-2018 Related Project(s) There are no related projects. 9/26/2018 Page 8 of 8