Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) Second Science & Technology Project (P127308) EUROPE AND CENTRAL ASIA | Croatia | Trade & Competitiveness Global Practice | IBRD/IDA | Specific Investment Loan | FY 2013 | Seq No: 8 | ARCHIVED on 15-Dec-2016 | ISR25798 | Implementing Agencies: Ministry of Science, Education and Sports Key Dates Key Project Dates Bank Approval Date:26-Apr-2013 Effectiveness Date:31-Jul-2013 Planned Mid Term Review Date:15-Sep-2015 Actual Mid-Term Review Date:06-Nov-2015 Original Closing Date:30-Jun-2017 Revised Closing Date:30-Jun-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective of the proposed Project is to support Croatia to absorb EU Funds in the research and innovation sector bycapacitating selected public sector organizations and stimulating the demand for those funds from the business and scientific communities. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A: Capacity Building for absorption of the EU Funds:(Cost $9.80 M) Component B: Research and innovation programs:(Cost $16.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 12/15/2016 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) This ISR reflects the findings of the November 7-11, 2016 implementation support mission. 1.Steady progress was registered since the last mission (May 2016) both in terms of implementation pace. The levels of commitment and disbursement have increased steadily, however they are lower than the originally planned as a consequence of the delays in project implementation. Thus, the level of disbursement reached 60 % by end October 2016 as stated in the Client Connection and the level of contracting raised to 75.5%. 2.Good progress was made towards achieving the project development objective, as reflected by several results indicators. Thus, the project contributed to the preparation of several strategic documents required for the use of ESI funds over the 2014-2020, such as the Strategy for Education, Science and Technology (2014), Smart Specialization Strategy (adopted by the Government in March 2016), and the Research Infrastructure Roadmap (adopted by the European Commission in June 2016[2]). Currently, a pipeline of four research infrastructure projects is under preparation (estimated value of EUR 150 million to be funded from ERDF). The value of project applications to EU funding, generated by UKF Cooperability program, exceeds EUR 20 million. In addition, UKF prepared application for funds from ESF within Operational Programme Efficient Human Resources 2014-2020 (OPEHR) under the CSF as global grant beneficiary, which is currently under revision of MSES (Intermediate Body Level 1). Staff in beneficiary agencies and MSES have been trained to improve the knowledge and competences related to EU funds processes and specifically in R&D&I sector. 3. Despite these achievements the project implementation is still behind the originally planned implementation schedule and project activities cannot be fully implemented by the current closing date (June 30, 2017). The 2013/2014 complex changed circumstances in the legal, policy and institutional landscape for research, development and innovation affected severely the project activities and determined delays of over one year and also led to project restructuring (2015). Additional delays occurred in 2016 due to the changes in the Croatian Government and in the leadership of MSE that have impacted on the timeliness of the decision-making process for some activities. The estimated cumulative delays amount now to about 21 months of project implementation. 4.The government confirmed its intention to request an extension of the project closing day to allow completion of all planned activities and achievement of the development objective. The extension would be critical to finalize ongoing R&D sub-projects under UKF and HAMAG-BICRO programs and prepare technical documentation for the large infrastructure projects in R&D sector for future financing from EU funds. A restructuring request that includes project extension by 21 months is expected by end November 2016. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  Moderate  Moderate Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Prepared set of innovation and R&D policy documents required for absorption of the EU Funds (Text, Custom) 12/15/2016 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) Baseline Actual (Previous) Actual (Current) End Target The Strategy on The Strategy on Education, Science Education, Science and and Technology was Technology was adopted by the adopted by the Parliament in October Parliament in October 2014. The Smart 2014. The Smart Specialization Strategy Specialization Strategy has been approved by has been approved by the European the European Ex ante Commission in March Commission in March conditionalities 2016. The National 2016. The National No documentation is for the use of Value Research Infrastructure Research Infrastructure available EU funds for Roadmap has been Roadmap has been R&D are met ( updated following the updated following the 3 strategies). approval of the Smart approval of the Smart Specialization Strategy. Specialization Strategy. The strategy will be The strategy will be published on the MSES published on the MSES site. This is the last site. This is the last conditionality that conditionality that remains to be fulfilled remains to be fulfilled as as to completely meet to completely meet the the target. target. Date 11-Feb-2013 30-Jun-2016 31-Oct-2016 30-Jun-2017 PHINDPDOTBL  Draft application for EU accreditation of selected R&D entities involved in the implementation of the EU Funds (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The accreditation The accreditation process for EU funds is process for EU funds is managed by MRDEUF managed by MRDEUF for ERDF and Min. of for ERDF and Min. of Labor for ESF, with Labor for ESF, with decisions on decisions on Accreditation IB management structure management structure and/or grant made at the central made at the central beneficiariy Value No application available government level. government level. status granted Therefore, the project Therefore, the project to CSF and funds have not been funds have not been HAMAG- directly used to support directly used to support BICRO the accreditation the accreditation process of STP2 process of STP2 participating institutions participating institutions so this indicator is likely so this indicator is likely to be dropped. to be dropped. Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments The indicator is to be dropped, since it's no longer relevant in the current context. 12/15/2016 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) PHINDPDOTBL  Six project proposals prepared for submission to EU Funds (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 6.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments Proposal for UKF has not been submitted yet, so it is not included in this figure. PHINDPDOTBL  Total value of projects in the pipeline for funding through the grant scheme managed by HAMAG-BICRO (in million Euro) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.60 41.34 42.42 48.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments Total value of 545 projects positively evaluated within 4 HB programs within STP II. Previous value included data reported by the sub-beneficiaries in the baseline and impact questionnaires about further required and planned amounts (after sub-projects' end) and was therefore higher. It was agreed that this type of data does not represent direct project pipeline and should not be taken into account. Regarding re-interpretation of the indicator value and the fact that no more calls are planned, End Target should be reduced to 42.00 PHINDPDOTBL  Total value of projects in the pipeline for funding by EU Funds originated from UKF funded projects (in million Euro) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.90 24.10 1.60 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 12/15/2016 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) PHINDPDOTBL  Total value of projects funded by UKF and HAMAG-BICRO under the Project sub-financing (in million Euro) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.50 14.36 17.43 13.60 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Overall Comments UKF - EUR 4.36 million 1. EUR 3.09 – from loan 2. EUR 1.27 – from state budget HAMAG-BICRO – EUR 13.07 million: 3. EUR 11.34 – from STPII (loan 78% + local component 22%) 4. EUR 1.73 – from HB budget Intermediate Results Indicators PHINDIRITBL  Number of trained staff in the MSES and its organizations and R&D institutions (e.g. HAMAG-BICRO, UKF, TTOs, CSF) on EU procedures for project preparation and implementation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 122.00 133.00 30.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 PHINDIRITBL  Number of workshops and conferences delivered to R&D institutions and beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 4.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 12/15/2016 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) PHINDIRITBL  Twinning project for the training of HAMAG-BICRO’s staff for implementation of EU Structural funds developed and implemented (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments HAMAG-BICRO proposed to drop this indicator, since it's no longer relevant in the current context. PHINDIRITBL  Information system established, functional and accessible to clients (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments An analysis of the stakeholders' needs will be performed by the end of February 2017. PHINDIRITBL  Total number of projects financed by HAMAG-BICRO (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 44.00 122.00 195.00 153.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments PoC4: 40; PoC5: 49; IRCRO: 21; RAZUM: 9; TTO: 14; PoC6: 62 12/15/2016 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) PHINDIRITBL  Total value of projects financed by HAMAG-BICRO (in million Euro) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.50 15.90 20.23 15.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments Total project value for 195 projects, including co-funding by sub-beneficiaries PHINDIRITBL  Number of products/processes/designs developed in Program II and III projects within HAMAG-BICRO for which IPR will be sought (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 15.00 26.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments Actual value reflects IPR protection for ended and ongoing sub-projects (updated regarding terminated RAZUM and IRCRO projects). Calculation: Program II (RAZUM): 2 IPR protections for 2 ended projects (included in previous value) + 3 IPR planned for 6 ongoing projects Program III (IRCRO): 3 IPR protections for 2 ended projects (included in previous value) + 7 IPR planned for 18 ongoing projects PHINDIRITBL  Number of researchers from the public sector included in Program II projects within HAMAG-BICRO (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 6.00 6.00 44.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments Number of researchers included in ongoing 6 Program II (RAZUM) projects. 12/15/2016 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) PHINDIRITBL  Number of foreign research institutions collaborated with by UKF projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 41.00 43.00 35.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2016 PHINDIRITBL  Total value of projects committed and financed by UKF (in million Euros) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.36 4.36 3.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 PHINDIRITBL  Number of collaboration projects between Diaspora and homeland researchers by UKF (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 26.00 26.00 22.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 PHINDIRITBL  Number of commercialization and collaboration agreements signed with industry (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 Comments 14 projects contracted end of Projects - March-May 2017. 12/15/2016 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) PHINDIRITBL  Value of collaboration and commercialization agreements signed with industry (in thousands Euro) (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 600.00 Date 14-Nov-2012 30-Jun-2016 31-Oct-2016 30-Jun-2017 PHINDIRITBL  The share of UKF grants submitted by female applicants (and the share of HAMAG- BICRO's projects submitted by female applicants) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 42.25 42.25 42.25 Date 13-Feb-2013 30-Jun-2016 31-Oct-2016 30-Jun-2017 PHINDIRITBL  The share of UKF grants assigned to female researchers and the share of HAMAG-BICRO's projects assigned to female applicants (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 31.43 37.73 31.43 Date 13-Feb-2013 30-Jun-2016 31-Oct-2016 30-Jun-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P127308 IBRD-82580 Effective USD 26.24 26.24 0.00 14.63 10.45 56% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P127308 IBRD-82580 Effective 26-Apr-2013 22-May-2013 31-Jul-2013 30-Jun-2017 30-Jun-2017 12/15/2016 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Science & Technology Project (P127308) Cumulative Disbursements Restructuring History Level 2 Approved on 11-Feb-2015 Related Project(s) There are no related projects. 12/15/2016 Page 10 of 10 Public Disclosure Copy