The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) Sustainable Croatian Railways in Europe (P147499) EUROPE AND CENTRAL ASIA | Croatia | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 13 | ARCHIVED on 15-Mar-2023 | ISR55107 | Implementing Agencies: HZ Cargo, HZ Infrastructure, HZ Passenger Transport, Ministry of Sea, Transport and Infrastructure, Republic of Croatia Key Dates Key Project Dates Bank Approval Date: 30-Apr-2015 Effectiveness Date: 04-Aug-2015 Planned Mid Term Review Date: 31-Dec-2018 Actual Mid-Term Review Date: 12-Feb-2019 Original Closing Date: 31-May-2020 Revised Closing Date: 31-Jul-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve the operational efficiency and the financial sustainability of the public railway sector in Croatia. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Project Coordination and Sector Policy Support:(Cost $5.70 M) Support to HZ Passenger Transport Restructuring:(Cost $65.00 M) Support to HZ Cargo Restructuring:(Cost $53.40 M) Support to HZ Infrastructure Restructuring and Enabling Investment to Increase the System Efficiency:(Cost $93.10 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 MSTI. The process of drafting the Multi-Annual Infrastructure Contract (MAIC) is underway. This started as the Railway Strategy and Infrastructure Plans were adopted by the Government in December 2022. Consultant team working on the MAIC is on board and carrying out the work. MSTI expects to have MAIC completed by May 2023. Furthermore, MSTI has agreed to support the procurement of the two remaining consultancies under the HZI. HZI. Two procurement packages are pending (i) for the signaling and network simplification study and (ii) update of the HZI restructuring study. Both contracts are expected to be completed by the end of April 2023. WB financed the rehabilitation of the Savski Marof line in the amount of 210 million HRK (fully disbursed). HZI is interested in reallocating some of the remaining project funds to continue the Savski – Marof works and the WB 3/15/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) is working to get management clearance on this. Installation of level crossings is expected to be completed by December 2023 (level crossings works post loan closing will be funded by HZI). HZC. The project was closed on November 30, 2021, and the loan funds were fully disbursed. The Government adopted a decision to compensate HZC in the amount of HRK 1.28 billion. HZC is now working to find a private partner in 2023 and meet PDO indicator #4. HZPP. This loan was closed on February 28, 2023. Contract for management support for the company restructuring has been negotiated and awarded recently but some activities will not be completed by the loan closing date. The tender for the IT audit is also under implementation and was partially completed by loan closing date. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Moderate Low Technical Design of Project or Program Moderate Moderate Low Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Moderate Moderate Stakeholders Substantial Moderate Moderate Other Moderate Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes To improve the operational efficiency and the financial sustainability of the public rail sector IN01255680 ►HZP operating expenses per train-km (in HRK) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 45.00 43.70 50.10 41.40 Date 31-Dec-2014 18-Aug-2022 16-Feb-2023 30-Nov-2021 IN01255851 ►Number of annual train-km operated per HZI employee (Number, Custom) 3/15/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) Baseline Actual (Previous) Actual (Current) End Target Value 4,032.00 4,322.00 4,156.00 4,500.00 Date 31-Dec-2014 18-Aug-2022 08-Mar-2023 30-Nov-2021 IN01255852 ►Preparation of the draft multi-annual infrastructure contract (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 08-May-2019 18-Aug-2022 09-Mar-2023 31-Dec-2020 IN01255853 ►Completion of a strategic partnership for HZ Cargo (transaction finalized) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 08-May-2019 18-Aug-2022 09-Mar-2023 02-Mar-2020 Intermediate Results Indicators by Components Project Coordination and Sector Policy Support IN01255860 ►Percentage of assets with resolved legal titles (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 31-Dec-2014 18-Aug-2022 18-Aug-2022 30-Nov-2021 Support to HZ Passenger Transport Restructuring IN01255854 ►Number of HZP staff retrenched (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,218.00 1,724.00 376.00 Date 31-Dec-2014 18-Aug-2022 16-Feb-2023 30-Nov-2021 IN01255857 ►Number of HZP rolling stock rehabilitated (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/15/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) Value 0.00 12.00 12.00 12.00 Date 31-Dec-2014 07-Sep-2021 09-Mar-2023 31-Dec-2020 IN01255862 DMUs and diesel locomotives (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 4.00 4.00 Date 31-Dec-2014 18-Aug-2022 09-Mar-2023 30-Dec-2020 IN01255865 EMUs and electric locomotives rehabilitated (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 8.00 Date 31-Dec-2014 18-Aug-2022 09-Mar-2023 30-Nov-2021 IN01255867 ►HZP five new trainsets (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 5.00 Date 01-Jan-2014 18-Aug-2022 09-Mar-2023 29-May-2020 IN01255868 ►Customers reporting perception of service improvement over past two years (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.44 4.44 4.44 10.00 Date 02-Jul-2018 18-Aug-2022 09-Mar-2023 30-Nov-2021 Not applicable due to COVID epidemic which led to a complete suspension of service in 2020 and Comments: reduction of service in 2021. Support to HZ Cargo Restructuring IN01255855 ►Number of HZC staff retrenched (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,507.00 1,507.00 910.00 Date 31-Dec-2014 18-Aug-2022 09-Mar-2023 30-Nov-2021 IN01255858 ►Number of HZC rolling stock rehabilitated (Number, Custom) 3/15/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,044.00 3,044.00 2,161.00 Date 31-Dec-2014 18-Aug-2022 09-Mar-2023 30-Nov-2021 IN01255863 Wagons (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,037.00 3,037.00 2,150.00 Date 31-Dec-2014 18-Aug-2022 09-Mar-2023 30-Nov-2021 IN01255866 Locomotives (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 11.00 Date 27-Feb-2015 18-Aug-2022 09-Mar-2023 30-Nov-2021 Support to HZ Infrastructure Restructuring IN01255856 ►Number of HZI staff retrenched (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 261.00 261.00 900.00 Date 31-Dec-2015 18-Aug-2022 09-Mar-2023 30-Nov-2021 IN01255859 ►Number of kms of line sections rehabilitated or improved (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 237.30 237.30 306.25 Date 31-Dec-2014 18-Aug-2022 18-Aug-2022 30-Nov-2021 IN01255861 ►Fatalities per 10 million train-km (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 2.00 2.00 7.00 Date 31-Dec-2014 18-Aug-2022 18-Aug-2022 30-Nov-2021 IN01255864 ►Preparatory work for centralized traffic control and signaling modernization (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/15/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) Value No No No Yes Date 01-Jul-2020 18-Aug-2022 09-Mar-2023 30-Nov-2021 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147499 IBRD-85000 Effective USD 88.65 88.65 0.00 81.81 7.95 91% P147499 IBRD-85010 Closed USD 48.20 48.20 0.00 48.69 0.00 100% P147499 IBRD-85020 Closed USD 46.50 46.50 0.00 46.86 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147499 IBRD-85000 Effective 30-Apr-2015 06-May-2015 04-Aug-2015 31-May-2020 31-Jul-2023 P147499 IBRD-85010 Closed 30-Apr-2015 06-May-2015 04-Aug-2015 31-May-2020 28-Feb-2023 P147499 IBRD-85020 Closed 30-Apr-2015 06-May-2015 04-Aug-2015 31-May-2020 30-Nov-2021 Cumulative Disbursements 3/15/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Sustainable Croatian Railways in Europe (P147499) Restructuring History Level 2 Approved on 27-Jun-2018 ,Level Approved on 11-Jun-2019 ,Level 2 Approved on 15-Jun-2019 ,Level 2 Approved on 12-Aug-2020 ,Level Approved on 26-Aug-2020 ,Level 2 Approved on 03-Nov-2021 Related Project(s) There are no related projects. 3/15/2023 Page 7 of 7