Public Disclosure Copy 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: 4 | ARCHIVED on 20-Oct-2017 | ISR29840 | 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-Nov-2018 Actual Mid-Term Review Date:-- Original Closing Date:31-Mar-2021 Revised Closing Date:31-Mar-2021 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 PHRPDODEL Components 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  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 10/20/2017 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) 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 Board on January 11, 2016, and the loan agreement was signed on January 14, 2016. The project aims to improve transparency, financial sustainability, and inclusive delivery of municipal services across the country. 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 FYR 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. Twenty-two municipalities expressed their interest to participate in MSIP2 and submitted their applications in response to the first Call for Proposals which was closed in November 2016, and are currently in the process of completion of technical documentation related to their proposed sub-projects. It is expected that the first sub-loan agreements would be signed in the first semester of calendar year 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 Overall  Moderate  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100,000.00 10/20/2017 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 PHINDPDOTBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 PHINDPDOTBL  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 PHINDPDOTBL  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 20.00 Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 PHINDPDOTBL  Percentage of completed subprojects that generated improved financial performance, including through increased revenue earnings or cost savings (Percentage, Custom) 10/20/2017 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy 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 90.00 Date 31-Dec-2015 31-Mar-2017 31-Aug-2017 31-Mar-2021 PHINDPDOTBL  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 17.00 Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 Overall Comments Intermediate Results Indicators PHINDIRITBL  Number of sub-loans signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 31-Dec-2015 31-Mar-2017 31-Aug-2017 31-Mar-2021 PHINDIRITBL  Number poverty/social inclusion investment grants signed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 17.00 Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 10/20/2017 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) PHINDIRITBL  Number of sub-projects, financed by sub-loans or grants, successfully completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 37.00 Date 31-Dec-2015 31-Mar-2017 31-Aug-2017 31-Mar-2021 PHINDIRITBL  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 1,500.00 Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 PHINDIRITBL  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 31-Mar-2017 31-Aug-2017 31-Mar-2021 PHINDIRITBL  Number of participants in consultation activities during sub-projects preparation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 400.00 Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 10/20/2017 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) PHINDIRITBL  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 31-Mar-2017 31-Aug-2017 31-Mar-2021 PHINDIRITBL  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 -- 0.00 600.00 Date 31-Dec-2015 -- 31-Aug-2017 31-Mar-2021 PHINDIRITBL  Roads rehabilitated, Rural (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 30.00 Date 31-Dec-2015 -- 31-Mar-2017 31-Mar-2021 PHINDIRITBL  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 31-Mar-2017 31-Aug-2017 31-Mar-2021 Overall Comments 10/20/2017 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) 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% 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 Restructuring History There has been no restructuring to date. Related Project(s) 10/20/2017 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Municipal Services Improvement Project (P154464) There are no related projects. 10/20/2017 Page 8 of 8 Public Disclosure Copy