The World Bank Report No: ISR9668 Implementation Status & Results Serbia Bor Regional Development Project (P092999) Public Disclosure Copy Operation Name: Bor Regional Development Project (P092999) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 31-Mar-2013 Country: Serbia Approval FY: 2007 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 20-Jun-2007 Original Closing Date 30-Sep-2012 Planned Mid Term Review Date 16-Jan-2012 Last Archived ISR Date 21-Mar-2012 Effectiveness Date 16-Dec-2008 Revised Closing Date 31-Mar-2013 Actual Mid Term Review Date 16-Jan-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the project is to support the GoS' efforts to revive the depressed Bor region through: (i) dealing with urgent environmental and social legacy issues arising from mining sector restructuring; and (ii) fostering new sources of economic growth and job creation in the region. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Environmental Management and Remediation 30.90 Socio-Economic Regeneration 10.56 Project Implementation and Evaluation 1.14 Overall Ratings Previous Rating Current Rating Public Disclosure Copy Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Moderate Implementation Status Overview The project implementation continues slower then expected, resulting in project lagging behind targets in achieving the Project Development Objective. Following the extension of project closing date in September 2012, the contract for Veliki Krivelj Collector has been signed in January 2013. The Government has requested that environmental remediation works be canceled until the situation with potential reprocessing of tailing material is clarified. The socio-economic development activities have been concluded in September 2012, with 36 public works being undertaken, providing temporary employment for 842 people. In addition, a total of seventeen training programs for 535 unemployed beneficiaries, 14 private sector beneficiaries, and 30 client relationship counselors from the National Employment Page 1 of 6 The World Bank Report No: ISR9668 Service (NES) have been successfully completed. Also, the civil reconstruction works aimed at establishing the business incubator in Majdanpek have been completed. Finally, 74 microfinance loans in the total amount of EUR 500,000 have been disbursed. Public Disclosure Copy Locations Country First Administrative Division Location Planned Actual Serbia Not Entered Majdanpek Serbia Not Entered Borski Rudnik Serbia Not Entered Borski Okrug Serbia Not Entered Veliki Krivelj Mine Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved environmental conditions in the areas Text Value None None None associated with past and present mining Date 16-Dec-2008 01-Feb-2013 31-Mar-2013 operations. Comments The contract for the Veliki Krivelj Collector has been signed in January 2013, while the works on env remediation will be cancelled. Improved capacity to monitor environmental Text Value No monitoring of soil, Monitoring Plan is not Monitoring according to the conditions groundwater and river prepared. program sediments Date 16-Dec-2008 01-Feb-2013 31-Mar-2013 Comments Activities related to env monitoring of remediation performance will be canceled Public Disclosure Copy due to cancellation of env remediation works contract. Number of jobs created/supported by the Number Value 0.00 886.00 3850.00 Project (via ALMPs, business incubators, Date 16-Dec-2008 30-Sep-2012 31-Mar-2013 microfinance) Comments This includes 36 jobs created as a result of job search assistance programs; 8 jobs following off-the-job training; 842 temporary jobs resulting Page 2 of 6 The World Bank Report No: ISR9668 from public works program. The underachievement of target is consequence of the economic crisis which proved Public Disclosure Copy initial targets were overambitious. It is also important to stress the lack of monitoring capacity to track placement amongst many beneficiaries in an environment with significant informal sector. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Progress in remdiation works of environmental Text Value No work undertaken No work undertaken Works completed, trouble spots. maintenance program fully operational Date 16-Dec-2008 01-Feb-2013 31-Mar-2013 Comments Collector contract signed in January 2013. Environmental remediation works contract will be canceled. Rehabilitation of Veliki Krivelj river by-pass/ Text Value No routing of collector No civil works in progress. 7100m completed collector Date 16-Dec-2008 01-Feb-2013 31-Mar-2013 Comments Collector contract signed in January 2013. Planned time for completion is 20 months from mobilization date (currently envisaged in early summer 2013). Number of beneficiaries from employment Text Value 0 and 0 4844/886 8680 beneficiaries and 1064 Public Disclosure Copy support services offered under the Project, and job placements placement of beneficiaries in jobs. Date 16-Dec-2008 30-Sep-2012 31-Mar-2013 Comments job search assistance -– 3467; off the job training - 535; public works - 842; no new data on placement of beneficiaries in jobs. Page 3 of 6 The World Bank Report No: ISR9668 Job search assistance (# of beneficiaries / job Text Value 0/0 3467/36 5400/540 placement) Sub Type Supplemental Public Disclosure Copy Off-the-job training (# of beneficiaries/job Text Value 0/0 535/8 1000/300 placement) Sub Type Supplemental On-the-job training (# of beneficiaries / job Text Value 0/0 0/0 280/224 placement) Sub Type Supplemental Temporary employment - public works (# of Text Value 0 842 2000 beneficiaries) Sub Type Supplemental Number of beneficiaries (tenants) from Text Value 10 N/A 40 business incubation services Date 16-Dec-2008 30-Sep-2012 31-Mar-2013 Comments Business Incubator in Majdanpek is in the process of selecting tenants. Total of loans disbursed in microfinance Text Value 0 74 4250 program Date 12-Feb-2010 30-Sep-2012 31-Mar-2013 Comments this indicator refers to the number of loans disbursed Total disbursed amount in MF program Text Value 0 $660,000 $11.5 million Date 12-Feb-2010 30-Sep-2012 30-Sep-2012 Comments EUR 500,000 actually disbursed via 74 loans Repayment rates in the microfinance program Text Value 0 95.4% 97 percent Date 12-Feb-2010 08-Mar-2013 30-Sep-2012 Public Disclosure Copy Comments Current repayment rate as reported by OBS Volume of Bank Support: Lines of Credit - Amount(USD) Value 660000.00 3000000.00 Microfinance Date 12-Feb-2010 30-Sep-2012 31-Mar-2013 Comments EUR 500,000 disbursed to The end target is in USD, MFI (or approx. USD 660,000) while the contract with MFI is in EUR Outstanding Microfinance Loan Portfolio Amount(USD) Value 33252929.00 Date 08-Mar-2013 Page 4 of 6 The World Bank Report No: ISR9668 Comments EUR 25,583,889 - This outreach indicator relates to Opportunity Bank Serbia's entire portfolio and serves for Public Disclosure Copy general World Bank reporting purposes.The numbers given are not specific to Bor Project. No of active loan accounts -Microfinance Number Value 13830.00 Date 08-Mar-2013 Comments This outreach indicator relates to Opportunity Bank Serbia's entire portfolio and serves for general World Bank reporting purposes.The numbers given are not specific to Bor Project. % active loans to women - Microfinance Percentage Value 25.66 Date 08-Mar-2013 Comments This outreach indicator relates to Opportunity Bank Serbia's entire portfolio and serves for general World Bank reporting purposes.The numbers given are not specific to Bor Project. Number of active micro-savings accounts Number Value 10995.00 Date 08-Mar-2013 Comments Relates to active deposit accounts. This outreach indicator relates to Opportunity Bank Serbia's entire portfolio and serves for general World Bank reporting purposes.The numbers given Public Disclosure Copy are not specific to Bor Project. Data on Financial Performance (as of 14-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P092999 IBRD-74640 Effective 20-Jun-2007 27-Jul-2007 16-Dec-2008 30-Sep-2012 31-Mar-2013 P092999 IDA-43260 Effective 20-Jun-2007 27-Jul-2007 16-Dec-2008 30-Sep-2012 31-Mar-2013 Disbursements (in Millions) Page 5 of 6 The World Bank Report No: ISR9668 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P092999 IBRD-74640 Effective USD 33.00 33.00 0.00 9.08 23.85 28.00 P092999 IDA-43260 Effective USD 10.00 10.00 0.00 0.00 10.17 0.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation Project restructuring to extend project closing date and modify project components is currently ongoing. Restructuring History Level two Approved on 05-Nov-2010, Level two Approved on 25-Sep-2012, Level two Approved on 27-Dec-2012 Public Disclosure Copy Related Projects There are no related projects. Page 6 of 6