The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Enhancing Infrastructure Efficiency and Sustainability (P163760) EUROPE AND CENTRAL ASIA | Serbia | Transport Global Practice | Requesting Unit: ECCWB | Responsible Unit: GTR03 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Victor A Aragones, Kathrin Hofer Seq No: 3 | ARCHIVED on 18-Jun-2019 | ISR37517 | Created by: Kathrin Hofer on 05-Jun-2019 | Modified by: Kathrin Hofer on 12-Jun-2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Program Development Objective is to improve the management and sustainability of select public infrastructure by strengthening government capacity and systems, upgrading assets, and increasing expenditure efficiency. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions Overall implementation progress regarding the modernization of maintenance management component (Transport component): The Government is taking actions in establishing the framework to mainstream Performance Based Maintenance Contracts. Some of these actions are the establishment of a Working Group to manage, supervise and monitor the implementation of this project, collecting data about the road asset condition, implementation of PBMC lots under RRSP that will serve as model for PBMC contracts under PforR, and completion of DLI1. PERS also completed a Business Plan. The business plan is the key in-house planning and business management tool to help achieve the future Service Level Agreements (SLA) targets. This means PERS’ business plan will be adjusted periodically and will be in line with SLA, once developed, and will articulate the commercial management strategy along the three primary objectives: (i) link infrastructure requirements to usage; (ii) minimize road maintenance cost; and (iii) establish core activities. Additionally, the first disbursement has taken place under the transport component which converted a portion of the authorized advance payment against DLIs 1 under the transport component. Status of the Energy Efficiency component: To date, renovations have been completed in around 125 public facilities and are ongoing in 39 public facilities, that were selected under the Government's Program for Reconstruction and Improvement of State-Owned Public Facilities in Education, Healthcare and Social Protection Sectors. Energy performance certificates for 52 renovated public facilities have been issued that confirm energy performance class C or at least two classes higher compared to the pre-renovation stage. However, verification of achieved results in line with the PforR is pending confirmation by the Independent Verification Agent. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163760 IBRD-87920 Effective USD 118.60 118.60 0.00 30.10 88.65 25% 6/18/2019 Page 1 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163760 IBRD-87920 Effective 02-Nov-2017 02-Nov-2017 12-Jan-2018 31-Dec-2021 31-Dec-2021 Program Action Plan Action Description Appointment of environmental manager Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 30-Nov-2018 Completed Systems Completion Contract with qualified environmental manager Measurement Comments Action Description State certification of PIMO procurement staff Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems PIMO Due Date 31-Oct-2017 Completed Completion State certification Measurement Comments Action Description Establish Program Steering Committee Source DLI# Responsibility Timing Timing Value Status Ministry of Mining Technical Due Date 17-Jan-2018 Completed and Energy (MME) Completion Decree by Ministry of Mining and Energy and minutes of meetings (August and November 2018) Measurement Comments Action Description Adopt Program Operations Manual Source DLI# Responsibility Timing Timing Value Status Technical PIMO Due Date 08-Oct-2018 Completed 6/18/2019 Page 2 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Completion PIMO management decision and publication of website as verified by IVA (DLI#4) Measurement Comments Action Description Internal environmental management guidelines Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 31-Jan-2018 Completed Systems Completion PIMO management decision to adopt internal environmental management guidelines on January 30, 2019; PIMO Measurement staff training was completed in March 2019 as per progress report. Comments Action Description Develop and administer annual social survey Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Recurrent Yearly In Progress Systems Completion Survey questionnaire and results Measurement Comments Pre- and post-renovation social surveys have been completed for 34 renovated facilities Action Description Provide annual training to municipalities and contractors on program Source DLI# Responsibility Timing Timing Value Status Technical PIMO Recurrent Yearly Revised Date Completion Training reports Measurement First training will be conducted once the first verification report for renovated buildings is completed to integrate Comments lessons/ gaps on the technical/ procedural side identified by the IVA Action Description Contractor environmental management guidelines and waste management plan Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 31-Jan-2019 Completed Systems 6/18/2019 Page 3 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Completion PIMO decision on adoption of guidelines and waste management plan Measurement Comments Action Description Align legal framework to ensure compliance of PBMC scope to the national framework Source DLI# Responsibility Timing Timing Value Status MCTI Due Date 30-Jun-2018 In Progress Completion Measurement Comments Due date is for update on progress towards completion of action. PERS update WB during mission in September. Action Description Provide institutional support to develop robust road sector reform plans. Source DLI# Responsibility Timing Timing Value Status PERS and MCTI Due Date 30-Jun-2018 In Progress Completion Measurement Comments Due date is for update on progress towards completion of action. PERS update WB during mission in September. Action Description Road asset condition and data in support of PBMC to enable development of PBMC scope. Source DLI# Responsibility Timing Timing Value Status PERS Due Date 30-Jun-2018 In Progress Completion Measurement Due date is for update on progress towards completion of action. Asset survey is ongoing and full survey is expected Comments to be completed in early 2020. However, according to PERS enough data will be available in 2019 to support signature of SLA. Action Description Develop attractive contract packages to enable successful competition at tender. Source DLI# Responsibility Timing Timing Value Status PERS Due Date 31-Aug-2018 In Progress Completion Measurement 6/18/2019 Page 4 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Due date is for update on progress towards completion of action. PERS update WB during mission in September. Comments Six PBMC lots were implemented under RRSP and will be used as basis for PforR. Action Description Develop capable supply chain and "buyer” to enable successful delivery of PBMC across the road network. Source DLI# Responsibility Timing Timing Value Status PERS Due Date 31-Aug-2018 In Progress Completion Measurement Comments Due date is for update on progress towards completion of action. PERS update WB during mission in September. Establish robust organizational arrangements for M&E PERS to assemble a PBMC Steering Committee and identify Action Description the Program Champion within its organization. Source DLI# Responsibility Timing Timing Value Status PERS and MCTI Due Date 31-Mar-2018 Completed Completion Measurement Comments Action Description Training of staff in environmental management tailored to Program’s needs; Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Completion PERS held a series of workshops where staff was trained on environmental management. Now PERS' staff will be Measurement having these workshops to train other staff. Comments Action Description Ensuring there is a dedicated environmental manager position to work exclusively under the Program Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 31-Dec-2018 Completed Systems Completion PERS appointed Djordje Mitrovic Bc CE as the Environmental Manager dedicated for PforR on December 17, 2018. Measurement 6/18/2019 Page 5 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Comments Action Description design of the environmental management guidelines for environmental impact monitoring for PERS Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Completion Mr. Mitrovic submitted environmental management guidelines for PERS in March 14, 2019 and WB approved in Measurement March 21, 2019. Documents have been uploaded to the portal. Comments Preparing a standard environmental management and monitoring guidelines for PERS-engaged contractors on road Action Description rehabilitation works Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Completion Mr. Mitrovic submitted environmental management guidelines for PERS engaged contractors in March 14, 2019 and Measurement WB approved in March 21, 2019. Documents have been uploaded to the portal. Comments Action Description Preparing a standard/generic Waste Management Plan for road rehabilitation activities Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Completion Mr. Mitrovic submitted a standard/generic waste management plan for PERS in March 14, 2019 and WB approved in Measurement March 21, 2019. Documents have been uploaded to the portal. Comments Adopting a rule that written approval of the environmental compliance report is obligatory precondition for the Action Description execution of the final payment of contractors. Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 07-Jun-2019 In Progress Systems PERS agreed to send a memorandum directing PERS staff to have approval of the environmental compliance report Completion as an obligatory precondition for the execution of the final payment of contractors. This task is pending proof of Measurement completion. 6/18/2019 Page 6 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Comments 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 Moderate Moderate Moderate 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 Substantial Substantial Moderate Stakeholders Low Low Low Other -- -- -- Overall Substantial Substantial Substantial RiskComments Comments The environmental risk rating is reduced from Substantial to Moderate - due to actions undertaken by two implementing agencies since the last ISR. The practical application of environmental management measures has improved in both implementing agencies. With respect to transport component – the environmental manager has been appointed in December 2018; the environmental management guidance for PERS staff, for PERS-engaged contractors on road rehabilitation and draft Standard Waste Management Plan were developed and approved in March 2019. The single outstanding action is related to adoption of the rule that confirmation of the full environmental compliance is required to be certified for the final payment to the contractors on road rehabilitation. Training of PERS staff into applying the environmental management guidelines is currently being undertaken, and will be reported during next mission. With respect to energy efficiency program – the environmental manager was appointed in December 2018, while development of the environmental guidelines for the PIMO staff, contractors engaged on energy retrofitting activities and draft Standard Waste Management Plan were developed and approved in February 2019. Formal adoption of the above documents was completed by Decision of PIMO Director in March 2019. First round of training of PIMO staff for implementation of the environmental guidelines was undertaken in March-April 2019, with subsequent trainings scheduled within the next 6 moths. There are no outstanding activities defined in ESSA in respect to PIMO. Regular reporting on compliance with the environmentally-related requirements now needs to become standard part of the Verification Reports for both components. Results PDO Indicators by Objectives / Outcomes Improve the management and sustainability of select public infrastructure IN00713479 ►Enhanced motorist satisfaction through better pavement condition by IRI<2.5 (Kilometers, Custom) 6/18/2019 Page 7 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7,000.00 Date 30-Nov-2017 03-Dec-2018 03-Dec-2018 31-Dec-2020 Comments IN00713480 ►Implementation of an SLA between MCTI and PERS defining agreed maintenance and financing (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2017 03-Dec-2018 03-Dec-2018 31-Dec-2019 Comments IN00713501 ►Projected lifetime energy savings (in renovated public buildings) (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 161,383.00 196,225.00 1,100,000.00 Date 30-Nov-2017 28-Nov-2018 06-Jun-2019 31-Dec-2020 Value in ISR based on 52 public buildings submitted as part of second progress report; buildings and Comments related savings submitted for verification/ disbursement may be different. IN00713502 ►Renovated buildings that meet Class C (or 2 classes higher) energy performance certificate (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 40.00 52.00 234.00 Date 30-Nov-2017 28-Nov-2018 06-Jun-2019 31-Dec-2020 Note: A list of 52 public buildings that meet building class C or two classes higher compared to baseline were submitted along with the second progress report; however, no verification report has yet been Comments received. Intermediate Results Indicators by Results Areas PBMC IN00713504 ►Length of national roads maintained (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,000.00 8,000.00 Date 15-May-2018 30-Nov-2018 30-Nov-2018 31-Dec-2020 Maintenance of the first 2000 km are related to DLI and were done according to its network in accordance Comments with the contractual specifications. The contracts executed would ensure, as a minimum, that during the 6/18/2019 Page 8 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Project implementation period no potholes remains open, no edge break occurs between the pavement and the shoulders and that all horizontal marking and vertical signs are adequately restored, in order to comply with the most critical road safety requirements. IN00713506 ►Completion of road asset survey (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,755.00 3,755.00 3,755.00 14,894.00 Date 30-Nov-2017 30-Nov-2018 30-Nov-2018 31-Dec-2018 Survey is ongoing and is expected to be completed towards to beginning of 2020. Basic data will be Comments available for PERS to sign a SLA with MCTI towards the end of 2019. IN00713508 ►Completion of PERS’ 3-year business (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Nov-2017 05-Mar-2018 05-Mar-2018 31-Dec-2019 Comments IN00713510 ►Completion of PERS' asset management plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2017 30-Nov-2018 30-Nov-2018 31-Dec-2020 Comments IN00713512 ►Road safety inspection carried out and safety measure implemented (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 30-Nov-2017 30-Nov-2018 30-Nov-2018 31-Dec-2020 Comments Building EE Component IN00713503 ►Reduction of associated CO2 emissions from energy saved in renovated buildings (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,489.00 52,905.00 19,000.00 Date 30-Nov-2017 28-Nov-2018 06-Jun-2019 31-Dec-2020 6/18/2019 Page 9 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) As per results achieved from 52 renovated buildings meeting building performance class C or two classes Comments higher, submitted along with the second progress report IN00713505 ►Estimated direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 180,524.00 199,185.00 1,381,000.00 Date 30-Nov-2017 15-May-2018 06-Jun-2019 31-Dec-2020 Based on results achieved for the 52 renovated buildings submitted along with the second progress report; Comments 59% of beneficiaries are female. IN00713507 ►Completed and approved bidding documents, including technical designs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 167.00 189.00 234.00 Date 30-Nov-2017 28-Nov-2018 06-Jun-2019 31-Dec-2020 Comments IN00713509 ►Government adoption of a medium-term national plan for the renovation of public buildings (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Medium-term national Value No national plan No national plan No national plan plan adopted Date 30-Nov-2017 28-Nov-2018 06-Jun-2019 31-Dec-2020 Comments IN00713511 ►Stakeholder satisfaction with program and reporting of positive socioeconomic benefits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 84.00 85.40 98.00 Date 30-Nov-2017 28-Nov-2018 10-Jun-2019 01-Feb-2021 Average satisfaction rate with renovation in completed 125 buildings (until now) Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 PERS Completes maintenance of 1000 km of national road network (Output, 17,791,500.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 0.00 1,000.00 -- Date -- 30-Nov-2018 17-Apr-2019 -- 6/18/2019 Page 10 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) PERS provided evidence of results achieved for DLI1. The World Bank accepted the evidence furnished in fulfillment of the withdrawal conditions and confirmed the achievement of Disbursement Linked Results Comments #1. The loan proceeds allocated to this DLR (EUR 15 million) were used to partially settle the amount of the previously disbursed amount. ►DLI 2 Service Level Agreement (SLA) between PERS and MCTI is signed. PERS Adopts its 3-year Business Plan PERS Completes maintenance of2000 km of national road network using enhanced road maintenance contra (Output, 23,722,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value No No No -- Date -- 30-Nov-2018 30-Nov-2018 -- Not yet due. However, according to PERS some of these have been completed and could be verified in early Comments 2019 (i.e., Business plan and road maintenance). Value will be updated once results are verified by PAC. ►DLI 3 Adoption of the asset management plan for PERS and 5000 km of the national road network managed by PERS is maintained using PBMC (Output, 29,474,585.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value No No No Yes Date -- 30-Nov-2018 30-Nov-2018 -- Comments ►DLI 4 Adoption and publication by PIMO Management of a Program Operations Manual (Output, 3,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 No documented program POM adopted and POM adopted and Value -- procedures published published Date -- 28-Nov-2018 06-Jun-2019 -- DLI 4 was met on October 8 with PIMO management adoption and publication of the POM. Confirmation of Comments results achievement was issued on February 20, 2019 and withdrawal application submitted on May 24, 2019. ►DLI 5 Issuance of a Government Decision on the Borrower's adoption of a medium-term national plan for the renovation of public buildings, and its publication in the Official Gazette (Output, 4,900,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Preparation of strategy Preparation of strategy Value No strategy in place -- has not yet started has not yet started Date -- 28-Nov-2018 06-Jun-2019 -- Comments 6/18/2019 Page 11 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) ►DLI 6 Design and operationalization of consolidated program monitoring and evaluation system (Process, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Development of M&E Agreed M&E data Value No consolidated system system has not yet -- architecture started Date -- 28-Nov-2018 06-Jun-2019 -- Data architecture of the M&E system has been reviewed and agreed; PIMO management allocated additional funds for the development of the M&E software in 2019 and selection of a qualified company is ongoing Comments (expected start of work on June 30, 2019). ►DLI 7 Renovated buildings meeting national building regulations and C Class (Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 0.00 0.00 234.00 Date -- 28-Nov-2018 06-Jun-2019 -- IVA report is still pending Comments 6/18/2019 Page 12 of 12