The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Enhancing Infrastructure Efficiency and Sustainability (P163760) EUROPE AND CENTRAL ASIA | Serbia | Transport Global Practice | Requesting Unit: ECCWB | Responsible Unit: IECT1 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Murad Gurmeric, Katharina B. Gassner Seq No: 9 | ARCHIVED on 01-Aug-2022 | ISR51706 | Created by: Kornel Drazilov on 30-May-2022 | Modified by: Murad Gurmeric on 26-Jul-2022 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Program Development Objective is to improve the management and sustainability of select public infrastructure by strengthening government capacity and systems, upgrading assets, and increasing expenditure efficiency. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Implementation Status and Key Decisions Overall implementation progress of the financed program: With the extension of the project closure date by two years to December 2023, a revised timeline for completion of results was developed with the implementation entities. The project maintains the original objective to improve the management and sustainability of select public infrastructure by strengthening government capacity and systems, upgrading assets, and increasing expenditure efficiency.   Status of the Transport component (modernization of road maintenance management):  The completion of the Service Level Agreement (SLA) between PERS and MCTI is a priority as other project activities are dependent on what is agreed within this agreement. Progress has been made on the SLA and on this basis the completion of the program results remains realistic under a two-year extension. Status of the Energy Efficiency component (renovation of public buildings): In total, 144 reconstructed buildings under the Program have achieved increased energy performance class of C or least two classes higher than the baseline. Covid-19 related delays, including access restrictions to buildings, supply chain limitations, and additional fiscal control measures for expenses have delayed the initiation of new building renovations in 2020 and 2021. Achievement of the overall program result of 234 renovated buildings is considered realistic under a two-year extension. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163760 IBRD-87920 Effective USD 118.60 118.60 0.00 72.09 45.87 61% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163760 IBRD-87920 Effective 02-Nov-2017 02-Nov-2017 12-Jan-2018 31-Dec-2021 31-Dec-2023 8/1/2022 Page 1 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IBRD87920-001 Maintenance of 1,000km 1 Regular EUR 15,000,000.00 Fully Achieved 15,000,000.00 100 % of NRN by PERS Sign. of Ser. Level Ag. by 2.1 Regular EUR 5,000,000.00 Not Achieved 0.00 PERS and MCTI Adoption by PERS of 2.2 Regular EUR 5,000,000.00 Not Achieved 0.00 rolling 3-year PBMP Maint. of 2,000km of NR 2.3 Regular EUR 10,000,000.00 Fully Achieved 10,000,000.00 100 % using EM spec. Maint. of 5,000km of NRN 3.1 Regular EUR 20,000,000.00 Not Achieved 0.00 under PBMCs Adoption by PERS's SB of 3.2 Regular EUR 4,850,000.00 Not Achieved 0.00 Asset Man. Plan Adopt. & pub. by PIMO of 4 Regular EUR 3,000,000.00 Fully Achieved 3,000,000.00 100 % a PO Manual Iss. of gov. dec. on adop. 5 Regular EUR 4,900,000.00 Not Achieved 0.00 of nat. plan Monit. & eva .system for 6 Regular EUR 2,000,000.00 Not Achieved 0.00 P2 of Program Renovated first 39 7.1 Regular EUR 5,000,000.00 Fully Achieved 5,000,000.00 100 % buildings Renovated all subsuq. to Partially 7.2 Regular EUR 25,000,000.00 8,076,923.00 32 % first 39 buil. Achieved Program Action Plan Action Description Appointment of environmental manager Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 30-Nov-2018 Completed Systems Completion Measurement Contract with qualified environmental manager Comments A new environmental manager has been hired in March 2020. Action Description State certification of PIMO procurement staff Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems PIMO Due Date 31-Oct-2017 Completed Completion Measurement State certification 8/1/2022 Page 2 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Comments Action Description Establish Program Steering Committee Source DLI# Responsibility Timing Timing Value Status Ministry of Mining Technical Due Date 17-Jan-2018 Completed and Energy (MME) Completion Measurement Decree by Ministry of Mining and Energy and minutes of meetings (August and November 2018) Comments Action Description Adopt Program Operations Manual Source DLI# Responsibility Timing Timing Value Status Technical PIMO Due Date 08-Oct-2018 Completed Completion Measurement PIMO management decision and publication of website as verified by IVA (DLI#4) Comments Action Description Internal environmental management guidelines Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 31-Jan-2018 Completed Systems PIMO management decision to adopt internal environmental management guidelines on January 30, 2019; PIMO Completion Measurement staff training was completed in March 2019 as per progress report. Comments Action Description Develop and administer annual social survey Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Recurrent Yearly In Progress Systems Completion Measurement Survey questionnaire and results Comments Post-satisfaction surveys will be continued in Q1 2022. Action Description Provide annual training to municipalities and contractors on program 8/1/2022 Page 3 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Source DLI# Responsibility Timing Timing Value Status Technical PIMO Recurrent Yearly In Progress Completion Measurement Training reports PIMO submitted a detailed training report as part of the third interim progress report Dec 2019. No training session Comments were held in 2020/21 due to escalation of COVID-19 outbreak and introduction of restrictive measures by the Ministry of Finance. Action Description Contractor environmental management guidelines and waste management plan Source DLI# Responsibility Timing Timing Value Status Environmental and Social PIMO Due Date 31-Jan-2019 Completed Systems Completion Measurement PIMO decision on adoption of guidelines and waste management plan Comments Action Description Align legal framework to ensure compliance of PBMC scope to the national framework Source DLI# Responsibility Timing Timing Value Status Technical MCTI Due Date 27-May-2021 In Progress Completion Measurement Completion of legal requirements to implement SLA. The Law on Roads does not contain provisions explicitly mentioning the SLA concept. Since the legislator decided Comments not to include such provisions, the legal basis from the Ratified Treaties dealing with the SLA concept have been used instead. Action Description Provide institutional support to develop robust road sector reform plans. Source DLI# Responsibility Timing Timing Value Status Technical PERS and MCTI Due Date 30-Jun-2018 Completed Completion Measurement Completion of this activity in a continued basis but was first accomplished in June of 2018 Due date is for update on progress towards completion of action. PERS updates WB on a rolling basis as part of Comments implementation/supervision tasks since then. Action Description Road asset condition and data in support of PBMC to enable development of PBMC scope. Source DLI# Responsibility Timing Timing Value Status Technical PERS Due Date 30-Jun-2018 Completed 8/1/2022 Page 4 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Completion Measurement Completion of survey database. Comments Asset survey was completed by April 19, 2021 Action Description Develop attractive contract packages to enable successful competition at tender. Source DLI# Responsibility Timing Timing Value Status Technical PERS Due Date 31-Aug-2018 Completed PERS completed six PBMC lots. It will implement such contracts for entire network by the end of 2020. However, it Completion Measurement is possible to see delays due to COVID-19. Team will monitor its progress. Packages have been completed but bidding process has not been initiated due to financial situation. Bidding of Comments PBMC is expected for 2022. Action Description Develop capable supply chain and "buyer” to enable successful delivery of PBMC across the road network. Source DLI# Responsibility Timing Timing Value Status Technical PERS Due Date 31-Aug-2018 Completed Completion of workshops and communications with interested parties. Trainings have been provided since August Completion Measurement 2018 and is something that PERS continues to work on. Comments Due date is completion of action for first time. WB team will continue to monitor on a rolling basis. Establish robust organizational arrangements for M&E PERS to assemble a PBMC Steering Committee and identify Action Description the Program Champion within its organization. Source DLI# Responsibility Timing Timing Value Status PERS and MCTI Due Date 31-Mar-2018 Completed Completion Measurement Comments Action Description Training of staff in environmental management tailored to Program’s needs; Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems PERS held a series of workshops where staff was trained on environmental management. Now PERS' staff will be Completion Measurement having these workshops to train other staff. Comments 8/1/2022 Page 5 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Action Description Ensuring there is a dedicated environmental manager position to work exclusively under the Program Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 31-Dec-2018 Completed Systems Completion Measurement PERS appointed Djordje Mitrovic Bc CE as the Environmental Manager dedicated for PforR on December 17, 2018. Comments Action Description design of the environmental management guidelines for environmental impact monitoring for PERS Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Mr. Mitrovic submitted environmental management guidelines for PERS in March 14, 2019 and WB approved in Completion Measurement March 21, 2019. Documents have been uploaded to the portal. Comments Preparing a standard environmental management and monitoring guidelines for PERS-engaged contractors on road Action Description rehabilitation works Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Mr. Mitrovic submitted environmental management guidelines for PERS engaged contractors in March 14, 2019 and Completion Measurement WB approved in March 21, 2019. Documents have been uploaded to the portal. Comments Action Description Preparing a standard/generic Waste Management Plan for road rehabilitation activities Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 21-Mar-2019 Completed Systems Mr. Mitrovic submitted a standard/generic waste management plan for PERS in March 14, 2019 and WB approved in Completion Measurement March 21, 2019. Documents have been uploaded to the portal. Comments 8/1/2022 Page 6 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Adopting a rule that written approval of the environmental compliance report is obligatory precondition for the Action Description execution of the final payment of contractors. Source DLI# Responsibility Timing Timing Value Status Environmental and Social PERS Due Date 07-Jun-2019 Completed Systems PERS agreed to send a memorandum directing PERS staff to have approval of the environmental compliance report Completion Measurement as an obligatory precondition for the execution of the final payment of contractors. This task is pending proof of completion. Comments 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 Moderate Moderate Moderate Technical Design of Project or Program Substantial Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Moderate Moderate Stakeholders Low Low Low Other -- Moderate Moderate Overall Substantial Moderate Moderate RiskComments Comments Increase in the risk for 'Institutional Capacity for Implementation and Sustainability' from Moderate to Substantial: The Covid-19 situation and the extraordinary measures it resulted in, notably in form of greater financial restrictions and re-prioritization of the government budget, has led to a decrease of control over implementation progress by the implementation entity PIMO (eg in terms of timeliness of authorization of tenders). Further, the crisis has caused further strain on municipal resources and resulted in lack of progress in areas such as securing of energy performance certificates for renovated buildings. Results PDO Indicators by Objectives / Outcomes Improve the management and sustainability of select public infrastructure IN01149240 8/1/2022 Page 7 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) ►Enhanced motorist satisfaction through better pavement condition by IRI<2.5 (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,000.00 2,000.00 7,000.00 Date 30-Nov-2017 24-Nov-2021 18-Jul-2022 31-Dec-2020 Comments IN01149241 ►Implementation of an SLA between MCTI and PERS defining agreed maintenance and financing (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2017 24-Nov-2021 18-Jul-2022 31-Dec-2019 Comments IN01149242 ►Projected lifetime energy savings (in renovated public buildings) (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 468,071.81 483,333.00 1,100,000.00 Date 30-Nov-2017 23-Nov-2021 21-Jul-2022 31-Dec-2020 Value in the ISR based on 149 public buildings submitted as part of the last PIMO interim progress report (July 2022). Related savings submitted for verification/disbursement may be different. Comments IN01149243 ►Renovated buildings that meet Class C (or 2 classes higher) energy performance certificate (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 144.00 149.00 234.00 Date 30-Nov-2017 23-Nov-2021 23-Nov-2021 31-Dec-2020 A list of 149 public buildings that meet building class C or two classes higher compared to baseline were reported in the last progress report (July 2022). Verification was done for 141 reconstructed buildings Comments (results verification report June 2022). Intermediate Results Indicators by Results Areas PBMC IN01149245 ►Length of national roads maintained (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000.00 3,000.00 8,000.00 8/1/2022 Page 8 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Date 15-May-2018 05-May-2021 18-Jul-2022 31-Dec-2020 Maintenance of the first 2000 km are related to DLI and were done according to its network in accordance with the contractual specifications. The contracts executed would ensure, as a minimum, that during the Project implementation period no potholes remains open, no edge break occurs between the pavement and Comments the shoulders and that all horizontal marking and vertical signs are adequately restored, in order to comply with the most critical road safety requirements. IN01149247 ►Completion of road asset survey (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,755.00 15,274.00 15,274.00 14,894.00 Date 30-Nov-2017 05-May-2021 05-May-2021 31-Dec-2018 Survey has been completed. Comments IN01149249 ►Completion of PERS’ 3-year business (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Nov-2017 05-Mar-2018 05-Mar-2018 31-Dec-2019 Comments IN01149251 ►Completion of PERS' asset management plan (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Nov-2017 05-May-2021 18-Jul-2022 31-Dec-2020 Comments IN01149253 ►Road safety inspection carried out and safety measure implemented (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5,000.00 Date 30-Nov-2017 05-May-2021 18-Jul-2022 31-Dec-2020 Comments Building EE Component IN01149244 ►Reduction of associated CO2 emissions from energy saved in renovated buildings (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/1/2022 Page 9 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) Value 0.00 12,611.30 12,832.00 19,000.00 Date 30-Nov-2017 23-Nov-2021 21-Jul-2022 31-Dec-2020 As per results table achieved for 149 renovated buildings meeting building performance class C or two Comments classes higher, submitted along with the last progress report (July 2022). IN01149246 ►Estimated direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 933,987.00 937,424.00 1,381,000.00 Date 30-Nov-2017 23-Nov-2021 21-Jul-2022 31-Dec-2020 Based on results achieved for 149 renovated buildings submitted along with the last progress report; 55 Comments percent of beneficiaries are female. IN01149248 ►Completed and approved bidding documents, including technical designs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 60.00 263.00 270.00 234.00 Date 30-Nov-2017 23-Nov-2021 21-Jul-2022 31-Dec-2020 Based on information provided in the eight progress report (July 2022). Comments IN01149250 ►Government adoption of a medium-term national plan for the renovation of public buildings (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Medium-term national Value No national plan No national plan No national plan plan adopted Date 30-Nov-2017 23-Nov-2021 21-Jul-2022 31-Dec-2020 Procurement of experts for the development of the medium term strategy has again been postponed; an update is expected once the new Government is confirmed with possibly new staffing at the Ministry of Comments Mines and Energy (tentatively September 2022). IN01149252 ►Stakeholder satisfaction with program and reporting of positive socioeconomic benefits (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 86.22 86.22 98.00 Date 30-Nov-2017 23-Nov-2021 21-Jul-2022 01-Feb-2021 In-facility surveys in education and health facilities planned for the heating season 2020/2021 were canceled due to e Comments situation. Post renovation surveys will re-initiated in Q3/Q4 2022. Disbursement Linked Indicators DLI_IND_TABLE 8/1/2022 Page 10 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) ►DLI 1 PERS Completes maintenance of 1000 km of national road network (Output, 17,791,500.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 1,000.00 1,000.00 -- Date -- 20-Dec-2020 20-Dec-2020 -- PERS provided evidence of results achieved for DLI1. The World Bank accepted the evidence furnished in fulfillment of the withdrawal conditions and confirmed the achievement of Disbursement Linked Results Comments #1. The loan proceeds allocated to this DLR (EUR 15 million) were used to partially settle the amount of the previously disbursed amount. ►DLI 2 Service Level Agreement (SLA) between PERS and MCTI is signed. PERS Adopts its 3-year Business Plan PERS Completes maintenance of2000 km of national road network using enhanced road maintenance contra (Output, 23,722,000.00, 42%) Baseline Actual (Previous) Actual (Current) 2020 Value No No No -- Date -- 05-May-2021 05-May-2021 -- PERS completed DLI 2.3. It is still working to complete 2.1 and 2.2. Comments ►DLI 3 Adoption of the asset management plan for PERS and 5000 km of the national road network managed by PERS is maintained using PBMC (Output, 29,474,585.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value No No No Yes Date -- 05-May-2021 05-May-2021 -- DLI 3.1 has not been completed as PERS saw its toll revenues drop significantly 17.4 percent during 2020. This prevented PERS to have the financial certainty to procure the rest of the PBMC lots that were planned Comments initially. DLI 3.2 is delayed as it depends on the completion of the SLA. ►DLI 4 Adoption and publication by PIMO Management of a Program Operations Manual (Output, 3,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) 2020 No documented program POM adopted and POM adopted and Value -- procedures published published Date -- 29-Jun-2020 29-Jun-2020 -- DLI 4 was met on October 8 with PIMO management adoption and publication of the POM. Confirmation of Comments results achievement was issued on February 20, 2019 and withdrawal application submitted on May 24, 2019. ►DLI 5 Issuance of a Government Decision on the Borrower's adoption of a medium-term national plan for the renovation of public buildings, and its publication in the Official Gazette (Output, 4,900,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 8/1/2022 Page 11 of 12 The World Bank Implementation Status & Results Report Enhancing Infrastructure Efficiency and Sustainability (P163760) The MME requested financing for UNDP technical assistance to support development of Funds for preparation of this plan in the national Value No strategy in place plan are secured in the -- budget for 2022. The budget for 2022. initiation of the assignment is however postponed until the new Government is confirmed in Q3 2022. Date -- 23-Nov-2021 21-Jul-2022 -- The assignment related to the development of the medium term public building strategy has been postponed until the confirmation of the new government (Q3 2022). Comments ►DLI 6 Design and operationalization of consolidated program monitoring and evaluation system (Process, 2,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 M&E software is fully M&E software to be fully operational and results Value No consolidated system operational in the next -- verification is expected by reporting period September 2022. Date -- 23-Nov-2021 21-Jul-2022 -- M&E application was completed and the monitoring system is operational and being used by PIMO staff. Verification on the basis of the completion of the last interim report supported by the M&E application is Comments planned for the next reporting period. ►DLI 7 Renovated buildings meeting national building regulations and C Class (Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2020 Value 0.00 102.00 141.00 234.00 Date -- 23-Nov-2021 21-Jun-2022 -- First disbursement of EUR 5 million against DLI #7.1 (39 completed buildings) was made in April 2020. PIMO submitted Verification Report and Results Achievement Notification letter, for the second (39) and third (24) batch of renovated buildings in November 2020 and February 2021 respectively, The Bank confirmed achievement of the results for both batches of reconstructed buildings in December 2020 (DLI# 7.2.1) and Comments March 2021 (DLI# 7.2.2) respectively. Disbursements against these two DLI’s were made in February and March 2021. PIMO submitted fourth verification report for 39 completed buildings to the Bank on June 21, 2022. 8/1/2022 Page 12 of 12