The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Second Municipal Services Improvement Project (P154464) EUROPE AND CENTRAL ASIA | Macedonia, former Yugoslav Republic of | Social, Urban, Rural and Resilience Global Practice Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 6 | ARCHIVED on 17-Oct-2018 | ISR33521 | Implementing Agencies: Project Management Unit, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 11-Jan-2016 Effectiveness Date: 14-Jul-2016 Planned Mid Term Review Date: 30-Apr-2019 Actual Mid-Term Review Date: -- Original Closing Date: 31-Mar-2021 Revised Closing Date: 31-Mar-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective of MSIP2 Project (PDO) is to improve transparency, financial sustainability and inclusive 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 Municipal Investments Sub-loans:(Cost $20.76 M) Poverty/Social Inclusion Investment Grants:(Cost $5.53 M) Project Management, Monitoring and Evaluation, and Capacity Building:(Cost $1.68 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The loan for the Second Municipal Services Improvement Project (MSIP2) in the amount of EUR25 million was approved by the World Bank Board of Executive Directors on January 11, 2016; the loan agreement was signed on January 14, 2016, and the Project was declared effective on July 14, 2016. The Project development objective is to improve transparency, financial sustainability, and inclusive delivery of municipal services across the country. Project implementation has been significantly affected by the political cycle in the country, including multiple delays in organizing elections in 2016, delays in forming the government after December 2016 elections, and local elections in 2017. In spite of these delays, the Project implementation is ongoing, though slower than expected, and the project is on track to achieve its development objectives. 10/17/2018 Page 1 of 6 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) MSIP2 will provide sub-loans to municipalities for infrastructure investments such as water supply, sewerage, solid waste management, local roads, energy efficiency improvements to municipal buildings, and other high priority municipal infrastructure investments with clear impact on welfare of citizens and efficiency of services. The Project also introduces a grant component to enhance service delivery and infrastructure for poorer and marginalized communities within municipalities throughout Macedonia. All municipalities are eligible and were encouraged to participate in the MSIP2, including through eight outreach workshops organized in each of the country’s planning regions in September-October 2016. The first Call for Proposals resulted by receiving applications from 22 municipalities. However, signing of the corresponding sub-loan agreements had to be postponed due to the local elections which started in the country. After completion of the local elections, the MSIP PMU approached all 22 municipalities with a request to confirm their intention to go ahead with the applied MSIP2 subprojects. As a result, 6 municipalities cancelled their participation in the MSIP2, while other 16 municipalities confirmed their willingness to take part in MSIP2 and implement the applied sub-projects. First sub-loan agreements with four municipalities applied under the 1st Call were signed on September 5, 2018 and will be followed by the start of procurement processes. Second Call for Proposals was announced on September 14, 2018. All municipalities are encouraged to participate. Deadline for submission of the applications is November 15, 2018. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Moderate Moderate Moderate Environment and Social Low Low Low Stakeholders Low Low Low Other -- Low Low Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improve transparency of targeted municipal services in the participating municipalities IN00623561 ►Number of participating municipalities (i.e. the municipalities which signed sub-loan agreements) that regularly publish sub- project progress information on their official websites or elsewhere (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 10/17/2018 Page 2 of 6 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Improve financial sustainability of targeted municipal services in the participating municipalities IN00623551 ►Percentage of completed subprojects that generated improved financial performance, including through increased revenue earnings or cost savings (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 90.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 Improve inclusive delivery of targeted municipal services in the participating municipalities IN00623550 ►Number of the completed sub-projects that focus on social inclusion (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623558 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100,000.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623562 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 IN00623564 Vulnerable/marginalized people with marginalized measured as the number of unemployed, social assistance receiving or in other ways vulnerable population that benefits from the project intervention (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Intermediate Results Indicators by Components Municipal Investments Sub-loans IN00623553 ►Number of sub-loans signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 10/17/2018 Page 3 of 6 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623556 ►Number of jobs generated, measured as the number of employees of contractors and engineering companies that perform works under the sub-projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,500.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623549 ►Number of visits to websites that publish sub-project progress information (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500,000.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623557 ►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 0.00 0.00 600.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623552 ►Roads rehabilitated, Rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623560 ►Roads rehabilitated, Non-rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 Poverty/Social Inclusion Investment Grants IN00623554 ►Number poverty/social inclusion investment grants signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623555 ►Number of sub-projects, financed by sub-loans or grants, successfully completed (Number, Custom) 10/17/2018 Page 4 of 6 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 37.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623559 ►Number of participants in consultation activities during sub-projects preparation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 400.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 IN00623563 Number of participants in consultation activities during sub-projects preparation - female (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 120.00 Date 31-Dec-2015 30-Jun-2018 30-Jun-2018 31-Mar-2021 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154464 IBRD-85610 Effective USD 28.04 28.04 0.00 0.66 27.41 2.3% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154464 IBRD-85610 Effective 11-Jan-2016 14-Jan-2016 14-Jul-2016 31-Mar-2021 31-Mar-2021 Cumulative Disbursements 10/17/2018 Page 5 of 6 The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/17/2018 Page 6 of 6