The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Local and Regional Competitiveness Project (P154263) EUROPE AND CENTRAL ASIA | Macedonia, former Yugoslav Republic of | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 6 | ARCHIVED on 30-Dec-2018 | ISR34935 | Implementing Agencies: Cabinet of the Deputy Prime Minister for Economic Affairs, Delegation of the European Union, Government of the Former Yugoslav Republic of Macedonia Key Dates Key Project Dates Bank Approval Date: 12-Jan-2016 Effectiveness Date: 28-Jul-2016 Planned Mid Term Review Date: 14-Nov-2018 Actual Mid-Term Review Date: 14-Nov-2018 Original Closing Date: 31-Dec-2019 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to enhance the contribution of tourism to local economic development and improve the capacity of the government and public entities to foster tourism growth and facilitate destination management. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Technical assistance for tourism development (Bank executed):(Cost $1.42 M) Component 2: Strengthening destination management and enabling environment (Recipient executed):(Cost $1.35 M) Component 3: Investment in tourism-related infrastructure and linkages at destinations (Recipient executed):(Cost $21.81 M) Component 4: Strengthening project management (Recipient executed):(Cost $1.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions A midterm review mission was held on November 14-30, 2018 with a number of meetings in person, via videoconference and site visits. Activities under Component 2 include progress with the destination management process and agreements reached between the key project stakeholders on essential project activities including a longer-term national strategy for tourism development, institutional coordination for 12/30/2018 Page 1 of 5 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) destination management, and activities on sector data to be supported under the Project. A workshop to launch the destination management process at the central and local (destination) levels will be held in January 2019. Under Component 3, the first call for proposals was finalized in September with a total of 6 sub-projects selected for funding. Three are in various stages of implementation. The second call was finalized in November 2018 and sub-contracting is expected to take place in December 2018- January 2019. A reserve list is being compiled in accordance with the Grant Manual. The PIU is developing detailed monitoring mechanisms for sub-project implementation, and the Bank team (under Component 1) is providing enhanced support to the PIU on monitoring and evaluation. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Substantial Institutional Capacity for Implementation and Sustainability Moderate Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Enhance the contribution of tourism to local economic development IN00597627 ►Additional private investment generated in tourism-related activities at beneficiary destinations (US$, cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000,000.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 The Bank team is working with the new Monitoring and Evaluation Specialist in the PIU to determine the Comments: baseline and review/revise the target. IN00597630 ►Increase in tourism-related jobs in beneficiary destinations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/30/2018 Page 2 of 5 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Value 0.00 0.00 0.00 7.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 The Bank Team is working with the new M&E Specialist in the PIU to determine the baseline and Comments: review/revise the target. Improve the capacity of the government and public entities to foster tourism growth and facilitate d IN00597632 ►Reforms implemented that were identified through a consultative PPD destination management process (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 9.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 The Bank team is working with the new Monitoring and Evaluation Specialist at the PIU to determine the Comments: baseline and review/revise the target. Overall Comments PDO The Results Framework was thoroughly reviewed during the midterm review, and missing methodologies for reporting on indicators have been developed. The Bank team is working closely with the PIU to increase M&E capacity, and will hold another mission in January 2019 with this purpose. Some adjustments are proposed to increase clarity of the indicators, and a minor restructuring will be processed. The Bank team will work with the PIU to report on the results framework as soon as possible. Intermediate Results Indicators by Components Component 2: Strengthening destination management and enabling environment (Recipient executed) IN00597628 ►Public and private stakeholders trained in destination management and development (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 400.00 200.00 Date 15-Jan-2016 23-Sep-2016 20-Dec-2018 31-Dec-2019 IN00597637 ►Share of local residents that are satisfied with tourism development in the destinations that benefit from the activities in the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 12/30/2018 Page 3 of 5 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Component 3: Investment in tourism-related infrastructure and linkages at destinations (Recipient executed) IN00597636 ►Grant beneficiaries who consider that supported activities are subject to consultation and reflect their views (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 IN00597635 ►Private enterprises that benefit from activities funded through the project’s grants, owned or managed by a woman (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 IN00597634 ►Private enterprises that benefit from activities funded through the project’s grants (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 IN00597633 ►Private enterprises that participate in project-supported capacity-building activities (e.g. training, supplier development, others) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 IN00597629 ►Increase in number of overnights by tourists in beneficiary destinations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 IN00597631 ►New tour packages offered by tour operators (local and foreign) that include the project-supported destinations as a new offering (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 15-Jan-2016 -- 20-Dec-2018 31-Dec-2019 Data on Financial Performance 12/30/2018 Page 4 of 5 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154263 TF-A1779 Effective USD 18.42 18.42 0.00 4.16 14.26 23% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154263 TF-A1779 Effective 14-Jan-2016 14-Jan-2016 28-Jul-2016 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 16-Feb-2017 Related Project(s) There are no related projects. 12/30/2018 Page 5 of 5