The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Local and Regional Competitiveness Project (P154263) EUROPE AND CENTRAL ASIA | North Macedonia | Finance, Competitiveness and Innovation Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 7 | ARCHIVED on 06-Aug-2019 | ISR37786 | 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 Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Progress with implementation has been noted in each of the recipient executed components since the last reporting period. While disbursement is still at the same level as during the midterm review (November 2018), implementation progress has been achieved with signing of sub-project agreements, engagement of the key national stakeholders in the sector (Ministry of Economy and Agency for Promotion and Support of Tourism), completion of the grievance process and the work on destination management. However, the likelihood of achieving the development objective is 8/6/2019 Page 1 of 7 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) highly contingent on the project timeframe and possibility of extension, subject to request from the Ministry of Finance and consideration by the World Bank and EU Delegation. 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 Substantial 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 IN00720933 ►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 0.00 241,031.00 10,000,000.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 As of May 30, 2019, the sub-project agreements with all 15 Associations and 12 of the Small or Micro Enterprises ha financing is US$ 1,423,497. According to the Q1 Reporting, out of this total contracted amount, US$ 163,081in co-fin In addition, one Grant Beneficiary under the SME grantees (US$ 68,930) and two Grant Beneficiaries under associat Comments: additional private investment beyond the co-financing amount. No private investment by sub-contractors has been re to be reported under the Q2 Reporting. IN00720935 ►Increase in tourism-related jobs in beneficiary destinations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/6/2019 Page 2 of 7 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Value 0.30 0.00 6.37 7.00 Date 31-Dec-2016 20-Dec-2018 31-Dec-2018 31-Dec-2019 According to the data provided by the Employment Agency by all 10 destinations respectively including all tourism re number of tourism related jobs across all destinations are: 2015 – 14,311 (baseline) 2016 – 14,264 (decline of 0.3% compared to 2015) 2017 – 14,222 (decline of 0.3% compared to 2016) 2018 - 15, 222 (increase of 7.0% compared to 2017) Between 2015 and 2018, the total numbers of jobs increased by 6.37%. Comments: The number of jobs increased in Destinations 1 (Ohrid, Struga, Prespa and surroundings), Destination 2 (Skopje, Ku region), Destination 7 (Gevgelija, Dojran and surroundings), Destination 8 (Polog region) and Destination 9 (Strumica destinations declined. According to the data from the Q1 Report (March 2019), four grant beneficiaries of associations reported 28 part-time 6 full-time and seasonal jobs. Three out of the 15 associations and 13 out of 15 SMEs reported specific numbers regarding the expected employm This total number was 492. Not all applicants reported precise numbers in their forms so the total number of jobs cre higher. Improve the capacity of the government and public entities to foster tourism growth and facilitate d IN00720934 ►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 1.00 9.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 The team proposes to redefine this indicator as "Reforms enacted to improve tourism management of the country as a destination (Number, cumulative)". Given the recent progress of the destination management activities under Component 2.2 (Strengthening destination management and enabling environment), Comments: reforms are expected to be implemented during the remainder of LRCP timeframe. Proposed new target is 3. Intermediate Results Indicators by Components Component 3: Investment in tourism-related infrastructure and linkages at destinations (Recipient executed) IN00720937 ►Grant beneficiaries who consider that supported activities are subject to consultation and reflect their views. (Percentage, Custom) 8/6/2019 Page 3 of 7 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 The Terms of Reference for a Consultant to conduct the surveys has been completed and the announcement and procurement process will start in June. Surveys are tentatively planned for July and Comments: November 2019. IN00720939 ►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 18.50 15.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 Five (5) out of 27 SME’ s and associations (grant beneficiaries) are owned or managed by a woman. Data Comments: for the sub-contractors is not yet available. IN00720940 ►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 48.00 100.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 The Q1 Report shows that 48 private enterprises (27 grantees and 21 sub-contractors) benefit from activities funded through the project’s grants. Most of the sub-contractors/partnerships are existing Comments: including service providers and suppliers. A few grantees established new partnerships for services and supplies from local partners. IN00720941 ►Private stakeholders 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 26.00 300.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 This indicator has been amended to refer to "private stakeholders", and include private professional Comments: associations, as compared to "private enterprises" in the indicator originally. IN00720942 ►Increase in number of overnights by tourists in beneficiary destinations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 32.70 12.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 Comments: IN00720943 ►Number of tour packages offered by tour operators (local and foreign) that include the project-supported destinations as a new offering (Number, Custom) 8/6/2019 Page 4 of 7 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 20.00 30.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 Local tour operators have started offering new tour packages including adventure experiences, such are hiking, biking, off-roading, free ride, jeep safari, history and religious site visits. Many of these packages are offered in combination with gastronomy experiences including home hosted meals, cooking demos and other culinary features such as wine and food tastings. Other experiences include visiting local natural Comments: and cultural sites, agritourism experiences including bee keeping and honey tasting and experiencing stringing tobacco leaves with locals. Several of the sub-projects include developing new tourism experiences but these are not market-ready yet. Component 2: Strengthening destination management and enabling environment (Recipient executed) IN00720936 ►Public and private stakeholders trained in destination management and development (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 400.00 759.00 200.00 Date 15-Jan-2016 20-Dec-2018 30-May-2019 31-Dec-2019 In 2017, 240 public and private sector stakeholders participated in workshops on the destination plan prepared for each of the ten destinations. In 2018, 337 stakeholders participated in workshops on destination management. In 2019, ten one-day workshops on destination management were held in each of the destinations, for 182 representatives of regional tourism stakeholders - tourism related SMEs, tourism associations and clusters, municipalities, business support organizations, universities, Centres for Comments: Development of the Planning Regions and NGOs – who are expected to be involved in destination management process in their destinations. The public sector stakeholders represented 54% of the total number of participants, whereas the private sector stakeholders take 34%. The remainder (12%) belongs to educational institutions, NGOs and chambers. Some of the stakeholders have participated in different workshops and may have been counted multiple times. IN00720938 ►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 30-May-2019 31-Dec-2019 The Terms of Reference for a Consultant to conduct the surveys has been completed and the Comments: procurement process will start in June. Surveys are tentatively planned for July and November. Overall Comments IR The surveys to measure "Grant beneficiaries who consider that supported activities are subject to consultation and reflect their views" and "Share of local residents that are satisfied with tourism development in the destinations that benefit from the activities in the project" are being procured and have not yet been undertaken. Thus, the result is not 0 but N/A. 8/6/2019 Page 5 of 7 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154263 TF-A1779 Effective USD 17.93 17.93 0.00 4.94 13.10 28% 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) 8/6/2019 Page 6 of 7 The World Bank Implementation Status & Results Report Local and Regional Competitiveness Project (P154263) There are no related projects. 8/6/2019 Page 7 of 7