Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review
Transit Corridor Improvement Project (P149697)

Report Number: ICRR0023327

1. Project Data

Project ID Project Name
P149697 Transit Corridor Improvement Project

Country Practice Area(Lead)
Belarus Transport

L/C/TF Number(s) Closing Date (Original) Total Project Cost (USD)
IBRD-84590 30-Jun-2020 247,791,210.13

Bank Approval Date Closing Date (Actual)
19-Dec-2014 15-Jun-2022

IBRD/IDA (USD) Grants (USD)

Original Commitment 250,000,000.00 0.00

Revised Commitment 247,791,210.13 0.00

Actual 247,791,210.13 0.00

Prepared by Reviewed by ICR Review Coordinator Group
Ranga Rajan Avjeet Singh Kavita Mathur IEGSD (Unit 4)
Krishnamani

2. Project Objectives and Components

DEVOBJ_TBL
a. Objectives
The Project Development Objective (PDO) as stated in the Loan Agreement (Schedule 1) and in the Project
Appraisal Document (PAD, page 6) is: " To improve transport connectivity, border crossing procedures
and safety for domestic and international road users on selected sections of the M6 corridor".

For the purpose of this Implementation Completion Results Report (ICRR) Review, the PDO is unpacked as
follows:

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PDO 1. To improve transport connectivity for domestic and international road users on selected sections of
the M6 corridor.

PDO 2. To improve border crossing procedures for domestic and international road users on selected
sections of the M6 corridor.

PDO 3. To improve safety for domestic and international road users on selected sections of the M6 corridor.

b. Were the project objectives/key associated outcome targets revised during implementation?
No

c. Will a split evaluation be undertaken?
No

d. Components
There were three components (PAD, pages 7 - 9).

1. Improvement of sections of M6 'Minsk - Grodno' transit corridor. The estimated cost at appraisal
was US$259.28 million. The actual cost was US$242.15 million. This component aimed to
reconstruct/upgrade 86 kilometers (km) of selected sections of the M6 corridor between the cities of Minsk
and Grodno through: widening from two-lanes to four-lanes, improvements to vertical alignments and
installing barriers, bus stops and road signs. This component also aimed to support the financial and
technical audits of these activities.

With the savings realized during implementation (discussed below), the project scope was expanded to
reconstruct/upgrade 154 km of selected sections of the M6 corridor. The added activities included road
repair, safety improvements, pavement overlays and noise barriers not included in the original works
program and rehabilitation of the road maintenance facility at Volozhin which served the M6 highway.

2. Road safety and network management. The estimated cost at appraisal was US$6.80 million. The
actual cost was US$4.28 million. There were two sub-components: (i) establishing a Traffic and Road
Safety Coordination Center (TRSCC) to promote safer roads through improved traffic and network
management, emergency response and dissemination of information to travelers. Activities under this sub-
component included consultancy services for design and impact evaluation, providing Information and
Communication Technology (ICT) systems and associated infrastructure; and (ii) support for developing
roadside services for the safety and convenience of road users and employment opportunities through
implementing a market survey on roadside services and a review of the Ministry of Transport and
Communications (MoTC) regulatory framework.

The scope of this component was expanded to include a feasibility study for the rehabilitation and safety
improvements on sections of the M1 highway and studies with recommendations on traffic safety
management during construction and road crossing for animals.

3. Border management enhancement. The estimated cost at appraisal was US$3.30 million. The actual
cost was US$4.82 million. This sub-component planned to finance activities aimed at improving the overall
performance of border management in Belarus and facilitating the movement of cross-border trade at the

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Bruzgi border crossing point. Activities in this sub-component included physical layout improvements to
reduce average clearance times and implementing a more efficient border policy.

e. Comments on Project Cost, Financing, Borrower Contribution, and Dates
Project cost. The estimated cost at appraisal was US$270.01 million. The actual cost was US$251.88
million (ICR, Annex 3, page 46).

Project financing. The project was financed by an IBRD loan of US$250.00 million. The amount disbursed
was US$247.79 million. The undisbursed amount of US$2.21 million was due to some component two
activities that were incomplete at project closing (discussed below).

Borrower contribution. The Borrower contribution was estimated at US$20.01 million at appraisal. The
ICR notes that the Borrower contribution was as planned. However, the actual cost reported by the MA-
C (Republican Unitary Enterprise Minskavtodor Center), the agency responsible for day-to-day
implementation, includes only US$4.09 million of expenditure by the Borrower and does not include the cost
of project related activities undertaken by state institutions and agencies other than MA-C, such as design
and technical and environmental supervision. (ICR, page 9, footnote 10).

Dates. The project was approved on December 19, 2014, became effective on May 7, 2015, and scheduled
to close on June 30, 2020. However, the project closed about two years behind schedule on June 15,
2022.

Other changes. There were two level 2 restructurings during the project lifetime.

The Bank supported the following main changes through the first restructuring on April 7, 2020.

 Savings of US$10.00 million were realized during implementation due to factors such as: (i) the
actual costs of original civil works contracts were less than estimated: and (ii) the government
exempted project activities from value added tax (VAT). The savings were used for expanding the
scope of components one and two activities (discussed above).
 New intermediate indicators were added to the results framework to reflect the increase in project
scope.
 The closing date was extended by 18 months to December 31, 2021, to allow time for completing
the added activities and for completing the establishment of the Traffic and Road Safety Center
(TRSCC) that had been delayed.

The following change was made through the second restructuring on December 3, 2021.

 The closing date was extended by six months from December 31, 2021, to June 30, 2022, for
completing the TRSCC activity that had been subject to further delays.

Due to a deteriorating operating environment arising from Russia's invasion of Ukraine and its regional
implications, the Bank suspended disbursements for all projects in Belarus on March 19, 2022. This action
effectively closed the project earlier than the revised closing of June 30, 2022.

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Split rating. The PDO did not change during implementation. Given that the project's scope was expanded
with the available Bank financing for the project, this review is not based on a split rating of objectives.

3. Relevance of Objectives

Rationale
Country and sector context. Belarus is geographically located at the center of Eastern Europe, bordered
by European member states Poland, Lithuania, and Latvia to the west and north and Russia and Ukraine to
the east and south. The transport sector in Belarus generates significant revenue from transit services. The
condition of the road network in Belarus (about 86,660 Km) was generally in good condition at appraisal,
due in part to the adequate allocation of resources for road maintenance in the past decade. In terms of the
road infrastructure, the main challenge facing Belarus was the need to increase capacity in a safe manner
along certain major routes and corridors.

The project areas were in the M6 corridor, one of the busiest transit corridors connecting the cities of Minsk
with Grodno and then to the Polish border. The project aimed to address these challenges: One, to
increase capacity through widening selected corridor segments from two to four-lane standards; two,
Belarus had relatively high fatalities compared with European Countries; and three, the potential of Belarus
as a transit hub was undermined due to the poor performance of its logistic sector relative to its regional
competitors. Hence, reducing border-post delays was necessary for facilitating cross-border trade.

Government strategy. The PDO was well-aligned with the government's national strategic objectives of
connecting all six of the country's oblast centers to high-standard roads and developing international transit
corridors as the M6 transit route linking Minsk and Grodno oblasts and connecting to Poland at Bruzgi. The
Government had undertaken important steps towards sustainable sector finance and budget allocations for
the road sector starting in the year 2014. The Government promulgated a new vehicle tax in January 2014
for financing capital expenditures including upgrading corridors such as the M6. The Government's "Roads
of Belarus" program till 2015 aimed to reduce traffic fatalities by 100 every year. The new goal for the
strategy from 2015 to 2019 was to fully eliminate traffic fatalities on main roads and road corridors by
upgrading them to Category 1 standard, which included high-specification road safety equipment.

Bank strategy. The PDO is well-aligned with the Bank strategy for Belarus. At appraisal, a key area of the
Bank's Country Partnership Strategy (CPS) for 2014 - 2017, articulated the need for (i) increasing the
country's competitiveness through structural reforms, and (ii) improving the quality and efficiency of public
infrastructure. The PDO was consistent with the Bank's Country Partnership Framework (CPF) for 2018 -
2022 which was current when this operation closed. The third objective of the CPF explicitly articulated the
need for improving transport connectivity and safety.

Previous Bank experience. The Bank has financed previous transport sector projects in Belarus including
the Roads Upgrade and Modernization Project (RUMP) which was completed in 2016. This project aimed to
improve selected segments of the M5 corridor.

The current project included investments aimed at upgrading selected sections of the M6 corridor linking
Minsk and Grodno and then to the Polish border, improving road safety, and activities aimed at reducing the
cross-border trade-related transactions cost. As discussed in the theory of change discussed below, the

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links between the project activities and the intended outcomes were logical. The PDO was relevant to the
Bank strategy and Government strategy and the project PDO was appropriate to the government's
implementation capacity. Therefore, this review rates the relevance of the PDO as High.

Rating Relevance TBL

Rating
High

4. Achievement of Objectives (Efficacy)

EFFICACY_TBL

OBJECTIVE 1
Objective
To improve transport connectivity for domestic and international road users on selected sections of the M6
corridor.

Rationale
Theory of change. The outputs such as rehabilitating and upgrading sections of the M6 corridor from two-
lane to four-lane standards and improving road safety features (such as installing central crash and side
barriers, road stops, road signs, and improving vertical alignments), would increase the M6 corridor capacity
and hence likely to improve transport connectivity for domestic and international road users on selected
sections of the corridor. These activities were likely to aid in the long-term development outcome of improving
economic competitiveness and sustaining economic growth. The theory of change assumes the following: (i)
the economic growth is sustained to utilize the project's investments, and (ii) there is timely acquisition of land
for widening roads. The causal links between the project activities, outputs, and outcomes were logical and
the outcomes were monitorable.

Outputs (ICR, page 14).

 154 km of single-carriageway road was rehabilitated and upgraded to a dual-carriageway road,
exceeding the original target of 86 km. The road works included improvements to the road's vertical
alignment, grade-separated junctions, median and edge safety barriers, bus stops, and road signs and
markings.
 An additional 40 km of the M6 corridor was improved, exceeding the target of 25 km. This entailed the
rehabilitation of road pavement (about 40 km) with safety improvements (such as barriers, bus stops
and footbridges). At project closure, the project had improved over three-quarters of the 292 long M6
corridor.
 With the savings realized during implementation, a road maintenance depot at Volozhin of M6 corridor
was constructed and M6 depots at Lida and Starchenyatya were refurbished.

Outcomes (ICR, page 15).

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The outputs described above were expected to result in the following outcomes: (i) reduction in travel time
between Minsk and Grodno (due to the capacity to safely increase the speed limit on the new road sections
from 90 kph to 110 kph); (ii) reduction in vehicle operating cost for medium trucks along the project roads; and
(iii) increase in the percentage of project beneficiaries expressing satisfaction with the project roads.
Accordingly, the following outcomes were realized:

 According to the surveys conducted by the Ministry of Transport and Communications (MOTC), travel
time between Minsk and Grodno decreased from 220 minutes at the baseline to 170 minutes at
closure, exceeding the target of 178 minutes.
 Vehicle operating costs for medium trucks decreased from S$0.55 at the baseline to US$0.48,
exceeding the target of US$0.50.
 1, 203 short-term construction jobs were created during implementation, marginally exceeding the
target of 1,200.
 312 long-term maintenance/roadside services jobs were created, exceeding the target of 275.
 84.5% of project beneficiaries expressed satisfaction with the project roads, exceeding the target of
75%.

The efficacy with which this PDO was achieved is rated by this review as substantial, given that the
expected outcomes were realized.

Rating
Substantial

OBJECTIVE 2
Objective
To improve border crossing procedures for domestic and international road users on selected sections of the
M6 corridor.

Rationale
Theory of change. The activities such as infrastructure improvements at the Bruzgi border control post were
likely to help in enhancing facilities for an in-channel clearance policy. The outputs of these activities were
likely to help in improving cross-border performance with reduced procedures and expedited freight clearance
time. The theory of change assumes that there would be adequate inter-agency cooperation for developing
border crossing procedures. The causal links between project activities, outputs and outcomes were logical
and the outcomes were monitorable.

Outputs (ICR, pages 16 - 17).

 A pilot scheme was introduced at three Border Cross Points (BCPs) including the Bruzgi border, to
improve border clearance procedures as targeted. The scheme was based on the results of a 2016
Time Release Study at the BCPs, which examined each stage of the crossing experience, identified
constraints and recommended solutions.
 Before the project, the Bruzgi BCP was approaching its capacity for handling trucks, resulting in
lengthy queues. Infrastructure was provided for enhancing capacity (such as automated low-speed

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weighing units, additional lanes, barriers, a canopy and parking lot for trucks and cars). At closure the
Bruzgi BCP's daily capacity increased from 700 trucks at appraisal to 1,700.
 At closure, Bruzgi BCP had a streamlined clearance system with the number of agencies involved
reduced to just two, the State Customs Committee and the State Border Committee. The "in channel"
clearance procedures policy was implemented by the State Customs Committee as targeted.

Outcomes (ICR, pages 16 - 17).

The outputs described above were expected to result in reduction in average time to complete border
clearance procedures for commercial vehicles at Bruzgi BCP. The average time to complete inwards border
clearance procedures (for commercial vehicles) decreased from 126 minutes at the baseline to 82.3 minutes
at project closure. This exceeded the target of 100 minutes. The baseline for this indicator was established by
the Time Release Study, and an impact assessment was conducted by the State Customs Committee to
measure border crossing times after the completion of improvements.

Efficacy of this PDO is rated substantial.

Rating
Substantial

OBJECTIVE 3
Objective
To improve safety for domestic and international road users on selected sections of the M6 corridor.

Rationale
Theory of change. The outputs, such as widening sections of the M6 corridor with road safety features and
establishing a Traffic and Road Safety Coordination Center (TRSCC), were likely to aid in better traffic
management, emergency response, and travel information for improving safety for domestic and international
road users on selected sections of the M6 corridor. These outcomes were likely to help in the long-term
development outcome of social and economic benefits from safer roads. The theory of change assumes that
multisectoral utilization of the road data is made available by the TRSCC. The causal links between the
activities, outputs, and outcomes were logical, and the intended outcomes were monitorable.

Outputs (ICR, pages 17 - 18).

 154 km of single-carriageway road section was converted to a dual-carriageway highway and traffic
was segregated by a median safety barrier to prevent crossovers, exceeding the target of 86 km. The
works included improvements to the road's vertical alignment, grade-separated junctions, median and
edge safety barriers, bus stops and road signs and markings. Footbridges and bus laybys were
introduced to improve the safety of pedestrians. An additional 40 km of the M6 corridor was
improved, exceeding the target of 25 km. This included the rehabilitation of road pavement (40 km)
with safety improvements (such as barriers, bus stops and footbridges).
 A survey was conducted to develop market-oriented roadside services as targeted to determine the
private sector's interest in investing in roadside services and identify the main obstacles faced by the
private sector in developing roadside services. Two studies were completed as targeted. The first

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study aimed to improve the safety of road users and to reduce the hazards associated with wild
animals crossing roads. The second was a feasibility study to rehabilitate and improve safety on the
M1 highway. Although contracts were awarded early in 2021 to major international consulting firms,
none of the assignments were fully completed by project closing, due to the sanctions on Belarus
arising from the Russia's invasion of Ukraine.
 The activity associated with operationalization of the Traffic and Road Safety Coordination Center
(TRSCC) to improve traffic management, emergency response and traveler information was not
completed when the project closed. At project closing, although the field equipment for the center was
installed and weather and traffic data were being transmitted to an existing traffic management center
and displayed to road users, critical hardware and software for operationalizing the center were not
installed due to the sanctions and suspension of disbursements.

Outcomes (ICR pages 18 - 19).

The outputs described above were expected to result in the following outcomes: (i) reduction in severe
injuries and fatalities on road sections under this project; and (ii) percentage of road safety beneficiaries
(including female beneficiaries).

 Severe injuries and fatalities on road sections under this project reduced from 42 at the baseline to 19
when the project closed, exceeding the target of 21. The ICR noted that a substantial portion of the
55% improvement in safety were attributable to project activities as the decrease in injuries and
fatalities along M6 were considerably better than the national trend, where road injury accidents
reduced by only about 21% between 2014 and 2022.
 73% of beneficiaries (including 45% females) benefitted from road safety activities, exceeding the
target of 65% (40% females).

Efficacy of this PDO is rated substantial, given that the outcomes were realized. However, even though the
project met the outcome indicator targets, the TRSCC which is also key to improving safety is yet to be
completed and operationalized.

Rating
Substantial

OVERALL EFF TBL

OBJ_TBL

OVERALL EFFICACY
Rationale
Overall, efficacy is substantial, given that there is adequate evidence that connectivity was improved along
the M6 corridor, crossing the border at Brugzi became quicker, and safety along the corridor improved due to
the project activities.

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Overall Efficacy Rating
Substantial

5. Efficiency
Economic analysis. An economic (cost-benefit) analysis was conducted for activities in project components
one (improvement of sections of M6 Minsk - Grodno transit corridor" and two (road safety and network
management). These activities accounted for 98% of the actual cost. The project benefits were assumed to
come from savings in vehicle operating costs, reduction in travel time, and reduction in road traffic fatalities.
Savings in vehicle operating costs were computed using the standard World Bank Highway Development and
Management Model - 4 (HDM - 4). Benefits arising from road safety improvements were assessed using the
estimated reduction of fatalities along the road and the monetary value of loss of human life (PAD, para 54).

The Net Present Value (NPV) at a 12% discount rate was US$156.7 million at appraisal, as compared to the
NPV of US$236.1 million at closure. The ex-post Economic Internal Rate of Return (EIRR) was 25.9% as
compared to the ex-ante EIRR of 16.2%. The ICR (para 46) observed that there were two significant differences
between the assumptions made at appraisal and what happened during implementation. First, traffic growth on
the M6 corridor was lower than predicted at appraisal partly due to the lower than expected Gross Domestic
Product (GDP) growth during the implementation period and partly due to the economic impacts of COVID - 19
restrictions. Second, the cost of civil works was lower than anticipated at appraisal.

An economic analysis was conducted at closure for the component three (Border Management Enhancement)
activity. The investment at Bruzgi BCP had a NPV of US$44.4 million at a 12% discount rate and the EIRR was
12.6%.

Savings realized during implementation were used for expanding the project scope.

Administrative and operational efficiency. There were delays in commencing the activity associated with the
Traffic and Road Safety Coordination Center (TRSCC), due to the difficulties of reconciling the interests of
multiple stakeholders (the Ministry of Transport and Communication, the Ministry of Interior, and the Ministry of
Emergencies). While the interests of the stakeholders were resolved with Bank support, the contract became
effective in November 2020, and this resulted in the extension of the closing date. However, this activity could
not be eventually completed due to the international sanctions.

The ICR (para 53) stated that despite an extended implementation period, total administrative costs were less
than the original estimates provided in PAD. At entry, 217 staff weeks of support were anticipated over a five-
year two-month implementation period. However, 181 staff weeks of support were provided over a seven-year
supervision period.

Disbursement during the project's first two years was less than expected, due to the slower than planned
procurement of component one civil works contracts as the government sought to allow the participation of local
state-owned contractors. Changes to the state-owned enterprises (SOEs) structure in 2016 allowed their
participation and the local contractors proved to be efficient, generally completing the works on time and without
cost overruns.

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In sum, the efficiency with which the project was implemented is rated as substantial.

Efficiency Rating
Substantial

a. If available, enter the Economic Rate of Return (ERR) and/or Financial Rate of Return (FRR) at appraisal
and the re-estimated value at evaluation:
Rate Available? Point value (%) *Coverage/Scope (%)
98.00
Appraisal  16.20
 Not Applicable
98.00
ICR Estimate  25.90
 Not Applicable

* Refers to percent of total project cost for which ERR/FRR was calculated.

6. Outcome

The relevance of the PDO to the Government strategy and the current Bank strategy is rated as High. Overall
efficacy and efficiency are rated as substantial. This review concluded that there were only minor shortcomings
in the project's achievement of its objectives and its efficiency. The project's overall outcome is therefore rated
satisfactory.

a. Outcome Rating
Satisfactory

7. Risk to Development Outcome

Government commitment. The ICR notes that it is likely that the development outcomes will have long-term
sustainability because Belarus has well-established and funded road maintenance arrangements. The ICR
(para 103) observed that M6 is maintained by the Minsk and Grodno road agencies and the project
supported the modernization of three of their maintenance depots. Also, funding for the road sector is
secured by income from road-tolling on major highways, including the M6.

Macroeconomic and geopolitical risks. The ICR notes that the only risk that development outcomes will
not be sustained is due to external factors associated with geopolitical and economic risks. Given the
international sanctions, the greatest risk to fully realizing the development outcomes mostly relates to slow or
negative traffic growth. Further, there is a risk of further delays in the TRSCC becoming fully operational due
to the difficulties in completing this activity under the current economic circumstances and ongoing
international sanctions.

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8. Assessment of Bank Performance

a. Quality-at-Entry
The Bank prepared this project based on the experience from the previous Bank-financed Roads
Upgrade and Modernization Project (RUMP) in Belarus. Lessons learned from RUMP were incorporated
into the project design, such as the Ministry of Transport and Communications (MOTC) quick adaptation
of innovative road sector practices. Thus, the project design also included international best practices,
like establishing the Traffic and Road Safety Coordination Center (TRSCC) and involving the private
sector in roadside services. The logistics sector had previously been addressed separately, despite
government investment in its development. This project aimed to improve coordination for a more
seamless logistics chain (PAD, paras 42 and 43).

The implementation arrangements made at appraisal proved to be appropriate during implementation.
The arrangements included: (i) the MOTC was responsible for the coordination and monitoring of
implementation progress; and (ii) the Project Implementation Unit (PIU) in the Republican Unitary
Enterprise Minskavtodor Center (MA-C) - a unit of the MOTC - was responsible for managing day-to-day
implementation (PAD, paras 44 and 45). The government and the implementing agencies had prior
experience in implementing Bank-financed projects.

The preparation team identified several risks at appraisal including moderate risks with the capacity of the
implementing agency, governance, and social and environmental risks. The mitigation measures
identified at appraisal were deeemed to be adequate. The arrangements made at appraisal for
safeguards and fiduciary compliance were appropriate (discussed in section 10).

There were minor shortcomings in the M&E design (discussed in section 9).

Quality-at-Entry Rating
Satisfactory

b. Quality of supervision
The Bank conducted fifteen implementation support missions at six-monthly intervals. With the onset of the
COVID 19 pandemic, the missions were virtual. The ICR (para 100) notes that observations and issues
relating to the progress obtained during visits were discussed with the relevant agencies. The ICR also
notes that when necessary, supervision was enhanced by contributions from the Country Manager to help
resolve issues such as the participation of State-Owned Enterprises (SOEs) in tenders. The support
provided by the supervision team aided in M&E and fiduciary and safeguards compliance (discussed in
sections 9 and 10). The ICR noted that after the decision to suspend the project, which negatively affected
the government to finalize three well-advanced contracts, the Bank and the Ministry of Transport and
Communication maintained good professional relations despite the challenges. The Bank team and client

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also successfully coordinated the exceptional payment for financial audit services from the loan funds when
no funds remained in the designated account.

In sum, overall Bank performance is rated satisfactory.

Quality of Supervision Rating
Satisfactory

Overall Bank Performance Rating
Satisfactory

9. M&E Design, Implementation, & Utilization

a. M&E Design
The results framework was logical. The key outcome indicators were - reduction in travel time between
Minsk and Grodno, reduction in vehicle operating costs (VOC) for medium trucks, reduction in severe
injuries and fatalities on road sections under this project, reduction in average time to complete border
clearance procedures (for commercial vehicles) at Bruzgi Border Crossing Point (BCP) and the percentage
of project beneficiaries expressing satisfaction with the project roads. The indicators were attributable to the
project activities and therefore appropriate for monitoring project performance.

However, there were some shortcomings. At appraisal, two of the five indicators lacked targets, with the
intention being that targets would be established during implementation based on project-supported
surveys and studies. This introduced a risk that PDO outcomes would be inadequately recorded should
one or more planned studies were not done. The ICR (para 82) observed that the indicators and data
sources lacked specifics.

b. M&E Implementation
The ICR (para 83) noted that the results indicators were regularly updated by the implementing agency.
Indicators were added (increased length of road being improved and the range of data collected by the
user satisfaction survey) when the project scope was expanded. However, some indicators did not
function well, such as tools for monitoring the project's progress towards the PDO. For example, the
progress towards completing major activities such as the TRSCC and border control modernization could
not be determined as only the intermediate results indicators recorded the completion of these activities.

c. M&E Utilization
The Bank team monitored implementation through regular communication with the project management
team. This enabled the Bank team to provide timely project management advice and to inform decision
making on allocating project savings,

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In sum, overall M&E is rated substantial. While there were no significant shortcomings in
implementation and utilization of M&E, the project would have benefitted from more detailed baseline
and target data for some indicators.

M&E Quality Rating
Substantial

10. Other Issues

a. Safeguards
The project was classified as a Category B (partial assessment) project under the World Bank safeguard
policies. Two safeguard policies were triggered at appraisal: Environmental Assessment (OP/BP 4.01); and
Involuntary Resettlement (OP/BP 4.12). (PAD, page iii).

Environmental Assessment. The PAD (para 72) noted that the road rehabilitations, road widening, and
road safety infrastructure were to be undertaken within the existing right of way of the road. The possible
adverse environmental impacts included: (i) air pollution and noise from trucks, other construction
machinery, and asphalt plants: (ii) soil disturbance: and (iii) tree cutting. A corridor-specific Environmental
Impact Assessment was conducted and specific Environmental Management Plans were prepared and
publicly disclosed at appraisal to address the impacts (PAD, para 73).

The ICR (para 89) noted that the project complied with the environmental safeguards, with no significant
environmental issues or non-compliance cases. The ICR (para 91) reported that the project maintained a
functioning grievance redress mechanism. Almost all the 67 grievances related to technical matters, such
as the location of sound barriers and provision for pedestrians and cyclists. The agency responsible for day-
to-day management resolved the grievances.

The ICR (para 72) noted that in October 2018, a commercial minibus traveling along the M6 collided with
the central barrier resulting in the death of two persons and injuries to 13 other travelers. Two further
serious accidents, one fatal, followed in 2019. These were reported to the Bank. The Bank team went on to
conduct detailed random safety spot checks where project-related roadworks were ongoing and to check
that traffic management plans were in place. The ICR also noted that official investigations took longer than
expected. Eventually, the investigation Committee found that the project-financed road works had not
contributed to the accidents.

Involuntary Resettlement. The PAD (para 69) noted that the project could entail land acquisition from 20
private owners for widening the road from two-lane to four-lane and expected to cause small-scale physical
displacement of five households and one or two cases of economic displacement. A Resettlement Policy
Framework (RPF) was prepared and publicly disclosed at appraisal to address these issues.

The project complied with the social safeguards. The project required the physical displacement or
relocation of 17 people but no economic displacement. The project-affected people were adequately
compensated in line with the RAP.

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Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review
Transit Corridor Improvement Project (P149697)

The ICR (para 92) notes that the overall Safeguards rating remained Satisfactory during the project
duration.

b. Fiduciary Compliance
Financial management. The Bank conducted an assessment of the financial arrangements of the
Minskactodor (MA -C) - the agency responsible for the financial management - of all the project
components. The agency had implemented the previous Bank-financed project. The assessment
concluded that the agency's financial arrangements were appropriate. The financial risk was rated as
moderate at appraisal (PAD, para 63). The ICR (para 93) observed that annual reports on the project's
financial statements were submitted by external auditors. Almost all the project financial documents were
non-qualified. However, the 2018 report had minor qualifications. This issue did not recur, and the financial
management was rated as satisfactory for the rest of the project duration.

Procurement management. The Bank conducted a procurement assessment of Minskactodor (MA -C).
The agency had a long experience with Bank-financed projects. The assessment concluded that the
procurement risk was moderate (PAD, para 66). The ICR (para 96) notes that there were no major contract
management issues or project implementation irregularities during the project lifetime. The procurement
rating at project completion was Moderately Satisfactory due to the delays in contracting the technical
assistance consultancies added during project restructuring.

c. Unintended impacts (Positive or Negative)
Unlike the earlier Bank-financed Road Upgrade and Modernization Project in Belarus, all the major civil
works contracts were awarded to Belarusian contracts following government led reforms to the ownership
structure of State-Owned Enterprises (SOE) early in the project. This provided the local contractors with
the opportunity to improve their capacity to execute projects (ICR, para 71).

d. Other
---

11. Ratings
Reason for
Ratings ICR IEG
Disagreements/Comment
Outcome Satisfactory Satisfactory

Bank Performance Satisfactory Satisfactory

Quality of M&E Substantial Substantial

Quality of ICR --- Substantial

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Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review
Transit Corridor Improvement Project (P149697)

12. Lessons

The ICR draws the following main lessons from the experience of implementing this project, with
some adaptation of language.

1. An assessment of the technical capacity of domestic contractors could help in facilitating
procurement. In this project, all the local contractors awarded the major civil engineering works
performed well despite not having international joint venture partners. The successful engagement
with domestic contractors, besides helping to reduce costs, also strengthened the sector by
providing the experience needed for the firms to compete competitively abroad.

2. An agreement with stakeholders on project activities, objectives and technical scope
would help prevent implementation delays. In this project, the delays associated with the
establishment of the Traffic and Road Safety Coordination Center proved to be challenging because
of the differing priorities of the multiple government stakeholders.

3. Not having targets or a methodology before entry could hinder monitoring project
activities. The project design did not have targets for some indicators or at least an
explicit methodology for monitoring some indicators in the results framework, with the intention being
that targets would be set during implementation based on later project-supported surveys. This
approach introduced a risk that the results outcomes would be inadequately monitored should one
or more planned surveys be poorly implemented or not done.

13. Assessment Recommended?

14. Comments on Quality of ICR

The ICR is well-written. The theory of change provided in the text clearly articulates the causal links between
project activities, outputs and the intended outcomes and explicitly states the assumptions under which the
intended outcomes are likely to be realized. The evidence and analysis provided in the ICR is adequate for
evaluating project performance. The ICR draws good lessons from the experience of implementing this
project. The photographs provided in the text were helpful in enabling the reader to visualize the changes under
the project.

a. Quality of ICR Rating
Substantial

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Independent Evaluation Group (IEG) Implementation Completion Report (ICR) Review
Transit Corridor Improvement Project (P149697)

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