The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) Western Balkans Trade and Transport Facilitation (P162043) EUROPE AND CENTRAL ASIA | Western Balkans | Finance, Competitiveness and Innovation Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 9 | ARCHIVED on 04-Mar-2024 | ISR59523 | Implementing Agencies: Government of Albania, Ministry of Construction, Transport and Infrastructure (Serbia), Ministry of Finance (North Macedonia), Ministry of Finance (Serbia), Ministry of Finance and Economy (Albania), Ministry of Transport and Communication (North Macedonia) Key Dates Key Project Dates Bank Approval Date: 18-Apr-2019 Effectiveness Date: 26-Nov-2019 Planned Mid Term Review Date: 25-Sep-2023 Actual Mid-Term Review Date: 25-Sep-2023 Original Closing Date: 15-Dec-2025 Revised Closing Date: 15-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Proposed Development Objective is to reduce the trade costs and increase transport efficiency in Albania, North Macedonia, and Serbia Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Facilitating movement of goods across the Western Balkans:(Cost $33.80 M) Enhancing transport efficiency and predictability:(Cost $51.90 M) Enhancing Market Access for Trade and Investments:(Cost $0.30 M) Suporting Project Implementation and Coordination:(Cost $4.00 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 Substantial Substantial Implementation Status and Key Decisions During the supervision period, project implementation proceeded on track and accelerated towards the end of the reporting period. Progress has been recorded in all three countries, which is also reflected in the increased disbursement rates – from 9.78 percent at the beginning of the supervision period to 12.4 percent by the end of January 2024. The project continued to prioritize large procurement packages throughout the reporting period, but also addressed implementation lags in discussions with the authorities, the PIUs, and the CMU. Four implementation support missions took place (Albania: July and September 2023, North Macedonia: November 2023, and Serbia: December 2023), three of which were the Mid-Term Review missions. In addition to implementing regular operational activities and components, the Project contributed significantly to advance the Trade and Transport Facilitation 2.0 (TTFP 2.0) agenda among all WB6 governments and the EU during the supervision period. In particular, during the supervision mission of July 2023 to Albania, the GoA requested the World Bank to support the preparation of the trade workstream of Berlin Process Summit 3/4/2024 Page 1 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) with the EU in October 2023, and of the preparatory Ministerial Meeting in September 2023. The Project prepared a policy brief on the expected benefits of a closer economic integration of the WB6 with the EU, contributed inputs to the concept note for the new TTFP2.0 initiative, and held technical level consultations with all relevant WB6 authorities in advance of both Berlin Process events. This resulted in the preparation of a draft matrix of potential activities to be included in the TTFP 2.0 initiative, including country-level investments, technical assistance requirements, and a set of proposed regional policy actions. The Berlin Process Summit of October 2023 issued the Chairs concluding remarks supporting the TTFP 2.0 preparation, as well as a Joint Declaration of the WB6, the WB, TCT and CEFTA on facilitation of trade and transport. As a follow up to the Summit, the Project enhanced the regular coordination with the TCT and CEFTA and introduced monthly meetings with CEFTA on common policy priorities, and country specific activities. During the remainder of the supervision period, the Project continued to advance the technical consultations with the WB6 counterparts to finalize the design of the TTFP 2.0 along the lines agreed at the Summit, which include 1) second generation trade facilitation reforms to align with EU trade procedures, 2) national quality systems for exports to meet EU market standards, and 3) transport logistics performance and critical medium and small-scale investments at key logistics nodes to address key bottlenecks. Albania (18.2 % disbursement of the total loan allocation for Albania): During this supervision period, progress was made against all components of the Project, most notably the commencement of the contract for the management support, project supervision and quality assurance for the National Single Window (NSW). The tender for the Vessel Traffic Management Information System (VTMIS) was awarded, and implementation started in December 2023. Technical specifications for the Border Crossing Point (BCP) Qafë Thanë were finalized and are ready for tendering. The procurement capacities at the CFCU were strengthened during the supervision period. Full information on the contracts awarded and the status of the current procurement plans is publicly available at the World Bank procurement website. North Macedonia (16.6% disbursement of the total loan allocation for North Macedonia): During this supervision period, the Project recorded accelerated pace of implementation across all components. Most notably, this period was marked by the appointment of the new management and special advisors responsible for the National Single Window (NSW) and the border crossing points (BCP) components at the Customs Administration (CA). The new NSW law was drafted, the tenders for Phase I BCP upgrades at Kjafasan and Deve Bair were launched, and the contract for the CCTV and the NPR equipment was signed. In parallel, the Intelligent Transport Strategy was adopted, and the ITS supervision tender was successfully closed. Finally, the implementation capacity of the PIU and the beneficiary institutions have been strengthened, contributing to the implementation progress. Full information on the contracts awarded and the status of the current procurement plans is publicly available at the World Bank procurement website. Serbia (7.3% disbursement of the total loan allocation for Serbia): During this supervision period, the Project continued to progress at a moderately satisfactory pace in Serbia. The high-level political engagement is satisfactory, with the Ministry of Finance playing a leadership role in defining and steering the component on the National Single Window (NSW), and spearheading the consultations on the TTFP 2.0 initiative. Full information on the contracts awarded and the status of the current procurement plans is publicly available at the World Bank procurement website. MPA Program Development Objective MPA PDO Table The Program Development Objective for the MPA is to reduce trade costs and increase transport efficiency in the Western Balkans Six MPA Table Multiphase Programmatic Approach (MPA) Status MPA Table Body During the supervision period, project implementation proceeded on track and accelerated towards the end of the reporting period. Progress has been recorded in all three countries. Based on the results of the MPA and the associated analytical work, the Bank worked with the authorities to advance the Trade and Transport Facilitation 2.0 (TTFP 2.0) agenda among all WB6 authorities and the EU. The MPA is seen as an instrument well suited for the type of reforms targeted under the trade and transport facilitation dialogue, supporting the level of readiness of authorities and sectors for implementation. the TTFP 2.0 will also be designed as an MPA. Risks Systematic Operations Risk-rating Tool 3/4/2024 Page 2 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial 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 Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To reduce the trade costs and increase transport efficiency IN01388582 ►Total annual costs to export and import for all shipments of Albania, North Macedonia, and Serbia (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 224,392,589.00 224,392,589.00 224,392,589.00 201,059,449.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388583 ►Cost to export (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 295.00 295.00 295.00 261.00 Date 31-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388584 Cost to export in Albania (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 65.00 65.00 65.00 57.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388585 Cost to export in North Macedonia (Amount(USD), Custom Breakdown) 3/4/2024 Page 3 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) Baseline Actual (Previous) Actual (Current) End Target Value 148.00 148.00 148.00 130.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388586 Cost to export in Serbia (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 82.00 82.00 82.00 74.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388587 ►Cost to import (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 374.00 374.00 374.00 338.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388588 Cost to import in Albania (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 87.00 87.00 87.00 79.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388589 Cost to import in North Macedonia (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 200.00 200.00 200.00 180.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388590 Cost to import in Serbia (Amount(USD), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 87.00 87.00 87.00 79.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388591 ►Average freight transport time on targeted corridors (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 13.00 13.00 11.00 Date 31-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388592 3/4/2024 Page 4 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) Average freight transport time on corridor Durres Skopje (Hours, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 6.00 6.00 6.00 5.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388593 Average freight transport time on corridor Skopje Belgrade (Hours, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 7.00 7.00 6.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 Intermediate Results Indicators by Components Component 1: Facilitating movement of goods across the Western Balkans IN01388596 ►Average time to import (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 36.00 36.00 36.00 27.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388598 ►Average time to export (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 32.00 32.00 32.00 25.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388600 ►Number of recommended border regulations that are adopted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 3.00 3.00 Date 31-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 On November 14th, 2022, the Governments of Albania and of North Macedonia signed the following two protocols for the implementation of the Border Agreement between the two countries signed in June 2021: 1. the Protocol on Joint Border Controls at the BCP in Qafasan/Qafë Thanë was signed by the Ministers of Interior of Albania and North Macedonia, and Comments: 2. the Protocol on the establishment of the joint BCP in Qafasan/Qafë Thanë was signed by the Ministers of Finance and Directors of Customs of Albania and North Macedonia. The Protocol on Infrastructure at the BCP in Qafasan/Qafe Thane was adopted on July 27, 2023, and the One-Stop shop operation at this BCP started in July 2023. 3/4/2024 Page 5 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) IN01388601 ►Number of firms that benefit from reformed custom/border services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 600.00 Date 31-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388602 ►Percentage of cargo inspected by border agencies (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 30.00 30.00 15.00 Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388603 ►Stakeholders reporting that the design/blueprint of the NWS is aligned with their needs and their contributions in the planning process (citizen engagement) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 07-Jun-2023 07-Jun-2023 24-Jan-2024 15-Dec-2025  Engagement with the stakeholders for the NSW system is currently underway as part of the implementation of the NSW Blueprint. Users and beneficiaries have been interviewed on a regular basis to assess their needs and requirements for the NSW system. The consultations on the technical design of the NSW Blueprint was completed in 2021.  The grievance redress mechanism (GRM) is under development and is being integrated into National Trade Portals in each country to enable just-in-time feedback from users on the one Comments: window platform and prompt action by government to address concerns. Relevant stakeholders and users will be informed about access to the GRM for feedback. Based on the guidance from the Bank, the PIU in Serbia has already prepared the draft Grievance mechanism for the Project and Grievance mechanism for employees for which the WB has provided guidance on the next steps.  The team will also discuss with clients alternative mechanisms for citizen engagement. Component 2: Improving transport efficiency and predictability IN01388594 ►Deployment of Intelligent Traffic Systems (ITS) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 IN01388597 ►Preparation and submission to Parliament of ITS Law (North Macedonia) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1.00 1.00 3/4/2024 Page 6 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) Date 01-Jan-2019 07-Jun-2023 28-Nov-2023 15-Dec-2025 ITS Law has been prepared and adopted on November 28, 2023. Comments: Component 3: Supporting market access for trade and investments IN01388595 ►Capacity of authorities to examine barriers in trade in services through the production of an action plan to remove barriers (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 31-Dec-2017 07-Jun-2023 14-Dec-2023 15-Dec-2025 On track for completion Comments: IN01388599 Capacity of authorities to examine gender-differentiated barriers in trade in services through the production of an action plan to remove barriers (Yes/No, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 29-Dec-2017 07-Jun-2023 24-Jan-2024 15-Dec-2025 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P162043 IBRD-89290 Effective USD 30.00 30.00 0.00 4.76 25.01 16% P162043 IBRD-89300 Effective USD 40.00 40.00 0.00 2.81 37.07 7% P162043 IBRD-89330 Effective USD 20.00 20.00 0.00 3.48 16.36 18% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162043 IBRD-89290 Effective 18-Apr-2019 06-Jun-2019 26-Nov-2019 15-Dec-2025 15-Dec-2025 P162043 IBRD-89300 Effective 18-Apr-2019 07-May-2019 20-Jan-2020 15-Dec-2025 15-Dec-2025 P162043 IBRD-89330 Effective 18-Apr-2019 19-Jun-2019 17-Jan-2020 15-Dec-2025 15-Dec-2025 3/4/2024 Page 7 of 8 The World Bank Implementation Status & Results Report Western Balkans Trade and Transport Facilitation (P162043) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/4/2024 Page 8 of 8