The World Bank Implementation Status & Results Report Results-based Road Maintenance and Safety Project (P132982) Results-based Road Maintenance and Safety Project (P132982) EUROPE AND CENTRAL ASIA | Albania | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 17 | ARCHIVED on 24-Nov-2022 | ISR53958 | Implementing Agencies: Albanian Road Authority, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 27-Mar-2015 Effectiveness Date: 25-Sep-2015 Planned Mid Term Review Date: 09-Apr-2019 Actual Mid-Term Review Date: 09-Apr-2019 Original Closing Date: 31-Dec-2021 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objectives are to: (a) maintain the condition and improve the safety of Borrower's Primary Road and Primary-Secondary Road networks, and (b) strengthen sustainable and efficient road asset management and safety practices, for the benefit of road-users. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1 - Maintenance Works and Monitoring:(Cost $52.71 M) Component 2 - Institutional Reforms:(Cost $6.60 M) Component 3 - Sector Support:(Cost $3.82 M) Component 4 - Project Management and Audit:(Cost $2.61 M) Front-End Fee:(Cost $0.16 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Team's Finding and Issues for the Management Attention The Output and Performance-based Road Maintenance Contracts (OPRCs) were successfully completed in March 2022, covering 1,332 km of the Primary and Primary-Secondary National Roads Network. Under the contracts, ARA conducted routine and periodic maintenance, road improvements and safety measures, emergency, and winter maintenance, as well as rehabilitation of specific sections substantially deteriorated. Building upon good experience gained from RRMSP, MoIE and ARA continued the OPRCs approach by funding them via Government allocations in the annual and medium-term budget for the entire network. The new OPRCs have been designed for a period of 4 years and using similar operational performance standards, merit and demerit system, technical specifications, etc. The multi-annual budget for the OPRCs is estimated at about US$17 million, annually. 11/24/2022 Page 1 of 6 The World Bank Implementation Status & Results Report Results-based Road Maintenance and Safety Project (P132982) Other technical assistance (TA) activities have also been completed, including Road Safety support to MoIE and Inter-ministerial Road Safety Committee (IRSC), and designing of Traffic Management and Monitoring Center for the MoIE. The last remaining activities are related to: (i) institutionalizing the Road Asset Management System (RAMS) that is partially completed due to lack of the RAMS platform developer. Despite this shortcoming, ARA did complete staffing of the RAMS unit and launched training of the engineers, and (ii) preparing detailed designs and bidding document for first year 14 bridges (only two are completed so far) the upcoming BRBP. The DLI achievement report was prepared by NTU consultant on October 18, 2022 and was reviewed by the Bank. It shows that ARA achieved the targets for routine and periodic maintenance, partially achieved the development and operationalization of a Social Transparency System, and did not achieve establishment of RAMS and signing of a service level agreement between MoIE and ARA. The establishment/operationalization of RAMS to inform was not completed. The RAMS developer (downstream vendor) JV “Finnish Overseas Consultants (FinnOC)” Ltd & “R& T sh.p.k”, according to ARA reporting, was not able to develop the IT/GIS-based system in full conformity with the technical specifications and contract requirements. ARA/PMT are planning the contract termination and evaluate and assess the partial completion and use of the platform, whcih would be strengthened and enhance during the implementation of follow up project. Procurement. Several contract management issues were discussed with ARA/PMT during the mission. The Bank team reconfirmed that with regard to the contract “Supply and Installation of a Road Asset Management System (RAMS) in Albania” signed with JV. "Finnish Overseas Consultants (FinnOC)" Ltd & "R& T sh.p.k", ARA/PMT needs to take the formal step of terminating the contract. It was recommended that ARA/PMT should confirm the level of completion under each of the deliverables submitted by the Consultant and reach an agreement with the Consultant for the percentage of payments that are claimed. Regarding the contract “Feasibility Study and Detailed Design of the Road Bridges Rehabilitation and Reconstruction in Albania” signed with Politecnica Ingegneria and Architettura, which will be completed within December 31, 2022, it was agreed that ARA/PMT should review and update the work program considering the level of work that can be accomplished within the project closing date and based on the above, negotiate and amend the contract accordingly. Considering that all procurement activities are completed, procurement rating of the project is confirmed to be Satisfactory. Financial Management. The Bank reviewed the IFRs for the first semester of 2022 and the draft DLI Audit report and brought to the attention of ARA/PMT that pursuant to the loan agreement, the amount (for Category 1) that can be converted into disbursement is the lower value between the amount of corresponding value of the DLI achieved and the value of the allowed eligible expenses reported. Based on Bank analysis, when actual cumulative expense pertaining to the IBRD portion reach the level of Euro 48.1 million, ARA should prepare a forecast to include an estimate of the portion of expenses (until the end of the project) that would have been covered by IBRD and that are now to be taken over by GOA. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Substantial Moderate Sustainability Fiduciary Substantial Substantial Moderate Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- Moderate Moderate Overall Moderate Moderate Moderate 11/24/2022 Page 2 of 6 The World Bank Implementation Status & Results Report Results-based Road Maintenance and Safety Project (P132982) Results PDO Indicators by Objectives / Outcomes Maintain the condition and improve the safety of the Primary Road and Secondary Road networks IN01219205 ►Road Condition, as a function of the average IRI of the project road network, does not deteriorate (IRI measured as m/km) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.50 4.50 3.30 4.50 Date 01-Sep-2014 19-May-2022 17-Oct-2022 30-Dec-2022 IN01219322 ►Fatalities on an annual basis across the National road network. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 295.00 227.00 227.00 250.00 Date 31-Dec-2013 19-May-2022 19-May-2022 30-Dec-2022 Strengthen sustainable and efficient road asset management and safety practices for road users IN01219321 ►Preparation and implementation of fully-costed multi-year maintenance plans, on an annual basis (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2015 19-May-2022 19-May-2022 30-Dec-2022 ARA has started the preparation of the multi annual plans, in anticipation of taking over project's performance based maintenance contracts and rolling over the same arrangements this time financed by Comments: government. These multi annual plans are prepared every year (as part of the Medium Term Budget Plans), starting from 2021 onward Intermediate Results Indicators by Components Component 1 - Maintenance Works and Monitoring IN01219323 ►Length of project roads under routine maintenance through Performance Based Contracts (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,335.00 1,335.00 1,335.00 11/24/2022 Page 3 of 6 The World Bank Implementation Status & Results Report Results-based Road Maintenance and Safety Project (P132982) Date 01-May-2015 25-Nov-2020 17-Oct-2022 30-Dec-2022 IN01219327 ►Length of national road network for which condition survey data obtained and entered into RMS database. (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 3,400.00 Date 01-May-2015 25-Nov-2020 17-Oct-2022 30-Dec-2022 Data have been collected by Monitoring Consultant, be entered in RAMS once the platform has been Comments: completed form the RAMS downstream vendor, and calibrated IN01219329 ►iRAP surveys completed showing an improvement in Safety Star ratings across the project roads. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Report Star Rating from Report Star Rating Report on Star Rating A better value than the Value October 2018 (better from October 2018 from First Year Survey original Star Rating ratings) (better ratings) Date 30-Dec-2015 25-Nov-2020 17-Oct-2022 30-Dec-2022 Component 2 - Institutional Reforms IN01219324 ►Road Safety Media Campaign developed and in use. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 01-May-2015 25-Nov-2020 17-Oct-2022 30-Dec-2022 The design of such activity is ready to start. Project Steering Committee in the Ministry of Infrastructure Comments: and Energy has already endorsed the TA program for the RS campaign Component 3 - Sector Support IN01219325 ►Preparation of Transport Sector Strategy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Jan-2015 25-Nov-2020 17-Oct-2022 31-Dec-2020 The sector strategy is prepared and adopted by the Ministry of Infrastructure and Energy, as part of the multi-donor support, led by EU Delegation in Tirana. In addition, the project is supporting the preparation Comments: of National ITS strategy which is part of the WB6 regional ITS initiative/strategy. Component 4 - Project Management and Audit 11/24/2022 Page 4 of 6 The World Bank Implementation Status & Results Report Results-based Road Maintenance and Safety Project (P132982) IN01219326 ►Accident Information Database enhanced and in use by end of Year 2 (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2015 25-Nov-2020 17-Oct-2022 31-Dec-2021 The accident database was not completed due to Covid 19 and inability of the consultant to travel to Comments: Albania IN01219328 ►Social Transparency System being used to monitor feedback trends, with issues being closed out and monthly reports being prepared. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-May-2015 25-Nov-2020 17-Oct-2022 30-Dec-2022 Although being established, the 2019 DLI Audit report confirmed that the STS is not fully functional, and the current mission agreed that ARA should start implementing auditor's recommendation in order to consider the respective DLI as ACHIEVED. The alternative solution is to integrate ARA' STS into national platform 'Bashkeqeverisja" (frequently used by citizens in general and also specific areas like road service Comments: levels), in order to receive from them the full range of complains and (dis) satisfaction of road users and interested individuals/communities. The latest audit report that STC is functional and confirmed the achievement of the respective DLI IN01219330 ►Finalize Beneficiary Impact Assessments and Completion Reports (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2015 25-Nov-2020 17-Oct-2022 31-Dec-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132982 IBRD-84890 Effective USD 80.00 80.00 0.00 63.71 11.21 85% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132982 IBRD-84890 Effective 27-Mar-2015 10-Apr-2015 25-Sep-2015 31-Dec-2021 31-Dec-2022 11/24/2022 Page 5 of 6 The World Bank Implementation Status & Results Report Results-based Road Maintenance and Safety Project (P132982) Cumulative Disbursements Restructuring History Level 2 Approved on 07-Apr-2021 Related Project(s) There are no related projects. 11/24/2022 Page 6 of 6