Europe and Central Asia | World Bank

Bulgaria - Public expenditures for growth and competitiveness

2012-05-16T04:00:00.000Z

Bulgaria's economy performed relatively well during the crisis and the economy is reviving. In comparison with other Tenth European Union (EU10) countries, for Bulgaria the drop in Gross Domestic Product, or GDP growth was below the median, fiscal performance deteriorated less, and public debt stayed among the lowest in the entire EU. In late January 2011 the EC concluded that in 2010 Bulgaria had made significant progress in deficit reduction and is on track to exit the excessive deficit procedure in 2011. The large macroeconomic imbalances observed in 2005-08 had been corrected by 2010 with relatively little negative impact on growth relative to other EU10 countries. Since late 2010 Bulgaria's recovery has been driven by net exports; investment and consumption are recovering more slowly. As long as the economic environment remains favorable and structural reforms are implemented as planned, the economy should reach and even exceed its pre-crisis level in 2012. This report is intended to inform policy makers, the international community, and civil society about Bulgaria's recent economic performance and its options for reforming public spending to enhance competitiveness and growth. It first reviews Bulgaria's growth strategy and its fiscal adjustment over the last several years and the medium-term challenges it confronts. The report then analyzes Bulgaria's export performance to identify comparative advantages and outline policy options to enhance competitiveness in the medium term. Reforms should focus on improving the productivity of the public sector to enhance service delivery, improve the business environment, and upgrade infrastructure. The report identifies two general areas for reform: (i) the wage bill and public employment; and (ii) management of public investment.

As Prepared for Delivery, IFC’s 14th Annual Global Private Equity Conference

2012-05-15T14:00:00.000Z

As Prepared for Delivery

IFC’s 14^th Annual Global Private Equity Conference:

Prevailing in a New Financial Landscape

Robert B. Zoellick

President, World Bank Group

Tuesday, May 15,2012

Introduction

It’s a great pleasure to join you today for IFC’s 14^th Annual Global Private Equity Conference in association with the Emerging Markets Private Equity Association, or EMPEA.

The story of this conference is emblematic of how the world economy has changed: Fourteen years ago, a small group met in the basement of IFC to discuss the prospect of private equity in developing countries.

Today, there are more than 800 people here, from nearly 60 countries: institutional investors; public and pension funds; private investors; endowments and family offices; senior investment professionals; chief investment officers, and directors from leading fund managers around the world, as well as representatives from development institutions and government agencies.

Plenary sessions and roundtable discussions cover a range of issues over three days – the global economic outlook and regulatory trends, of course – but also non-financial risks, infrastructure, SMEs, mezzanine…and intriguing markets beyond the BRICs to Turkey, Palestine, Africa, and frontier markets.

The success of this conference is in large part because of the enormous potential of emerging markets: over the past five years, developing countries have provided two-thirds of global growth.

This conference also reflects the terrific partnership between Lars Thunell and the Private Equity Funds group at IFC, and Sarah Alexander and her team at EMPEA. Together, they’ve made this conference one of the leading global forums for private equity. So I want to thank them for their hard work and their leadership.

I also want to thank an impressive set of participants: sponsors; panelists; speakers –and all of you.

Yet I want to add a special word of thanks for Lars.

When I came to the Bank in July 2007, it was a time of trouble.

Frankly, meeting Lars was like having a breath of fresh air: He was steady, sensible, constructive – clearly an excellent executive, committed to the private sector’s role in development, and doing interesting things.

Together, we came up with some innovative ventures both to help developing countries during tough times, and to move IFC even closer to the cutting edge of private sector development in these exciting markets.

He always offered good counsel, fine judgment, common sense, and friendship – for which I’m grateful.

Keeping the Focus on Growth and Structural Reform

Last month, at the Spring Meetings of the World Bank Group and IMF shareholders, much of the focus was – understandably – on macroeconomic stability.

This attention to the macroeconomic picture is necessary – but it’s not sufficient. Extraordinary monetary policies buy time – but they don’t solve the fundamental problems.

As my friend, Deputy Prime Minister and Finance Minister Tharman of Singapore said at our Spring Meetings, investors will accept short-term costs if they perceive good returns over time. All countries – developed and developing – need to focus on the structural reforms – the microeconomic policies – that will drive future growth.

Structural changes are essential to enhance productivity, competition, and innovation for developed and developing countries – whether it’s so that Europe can restore its economic performance, or China can avoid the so-called “middle income trap” and meet its challenges in the coming decades. Structural reforms are important for the United States, too.

In practical terms – and for investors like you – what does structural reform mean?

It means strengthening the fundamentals of productive supply-side growth in all sectors – agriculture, manufacturing, services.

It means investing in infrastructure – especially through public private partnerships.

It means private sector development – the engine of innovation and job growth: markets; investment; small and medium-sized businesses; as well as focusing on jobs training and skills.

It means expanding markets – through both the hardware and software of trade: regional integration; ports and infrastructure; lowering the costs of formal, informal, or logistics barriers.

At the same time, structural reform means investing in green growth and energy efficiency – because “growing dirty, cleaning up later” is not a viable option. Environmental degradation cannot be the price for short-term growth.

Structural reform also means investing in human capital:

- Efficient and affordable safety nets – because only 1 out of every 5 people in the poorest countries has any form of social protection;

- Basic financial services – because more than half the world’s poor, almost 2.4 billion people, are “unbanked”;

- Basic nutrition and health – because without these essentials, people cannot begin to achieve their potential; and

- Quality education, connected to training, which leads to better jobs, more innovation, and greater gains for all.

Investing in people means tapping the energies and genius of all: young people, the elderly, and not least girls and women – an under-realized source of growth everywhere.

Importance of Partnerships

You can play an important role in making all this happen.

Countries need private equity more than ever to push forward the structural agenda. But to be most effective, the right partnerships are critical – to seize opportunities, open up new markets, share market knowledge and learning.

We’ve seen this at the World Bank Group with IFC’s Asset Management Company, or AMC, which Lars and I created in 2010 to supplement IFC’s traditional model of raising money in bond markets and then investing it. The idea was for the AMC to tap sovereign wealth funds, pension funds, and other institutional investors that are looking to increase their exposure to emerging markets, and that are interested in accessing IFC’s transaction pipeline, investment approach, and track record of superior returns.

Now ably led by Gavin Wilson and a fine team, the AMC considers investments in spaces where IFC-supported private equity fund managers are not active, either because of the size of the investment or the riskiness of the sector. As the AMC makes profitable returns for its institutional investors, these investors are likely to feel more comfortable investing in smaller private equity funds and frontier markets.

The AMC now totals over $4 billion – almost $3 billion of which had little previous exposure to Africa and other less recognized emerging markets. Building on the success of its $1 billion African, Latin American, and Caribbean Fund, last year, the AMC established an African Capitalization Fund that invests in commercial banking institutions in northern and Sub-Saharan Africa. This Fund has already made investments in Ghana and Malawi.

AMC offers a great model for a win-win partnership between capital, experience, and expertise.

When I asked one pension fund manager what attracted him to AMC, he told me: We now know developed markets are risky, too; we see growth potential in developing markets – but we don’t know where to invest. IFC does. And we can learn through this partnership.

Opportunities: Doing Well and Doing Good

We have seen the positive impact private equity can have.

IFC has private equity investments of about $3 billion across 180 funds in emerging markets. We estimate that these investments alone have helped create about 300,000 new jobs over the last 10 years, many of them for women. We see much more potential for the future.

Private equity also increases the wealth – the savings – of pension funds and other institutional investors who assist many millions of savers, small and big.

Increasingly, institutional investors want their investment capital not only to do well, but to do good. Private equity can help companies grow, hire more workers, raise productivity. But at the same time, private equity can also be a powerful driver of change: raising standards; fostering growth; promoting new opportunities for businesses and individuals; helping to overcome poverty; bringing hope.

Let me give you some examples.

China Environment Fund

Tsing Capital’s China Environment Fund: Founded by Don Ye in 2000 to focus on clean tech investments, the Fund adopted a triple bottom line, balancing social, environmental, and financial returns.

At first, portfolio companies were resistant to the Fund’s focus and approach. After all, government regulations were weak. Investors would say, “We give you the money, and you give us a return. Why are you talking to us about welfare, child labor, the environment, and insurance?” Deal flow was slow for the first fund: it only raised $13 million from socially responsible investors.

Now, Tsing Capital’s investors are telling a different story. The company has become a market leader, generating three digit financial returns. The latest China Environmental Fund, in which IFC invested $20 million, had a target size of $350 million.

What’s the secret of Tsing Capital’s success? Certainly persistence on the part of Don and his team. But they also chose the right partners.

From the outset, Tsing Capital performed social and environmental risk screening on companies during due diligence before it invested. The company checked standards against national laws and regulations, but they also made thorough use of IFC’s performance standards which provide guidance on how to identify – and avoid – risks and impacts.

If Tsing Capital identified any excluded activity – potential deals were dropped. If they found risks, they were corrected. Tsing Capital worked hand-in-hand with companies to improve corporate governance and upgrade management capability and strategies.

Their hard work has paid off. Today, Tsing Capital is raising environmental and social standards across the industry, and transmitting those standards into multiple start-up companies. It has twice been honored as a corporate citizen in China, and Don Ye has been recognized by Business Week as one of China’s 40 most powerful people – alongside President Hu Jintao and Yao Ming of the Houston Rockets!

It’s a great success story. It shows how commercial concerns linked to environmental and social standards offer win-win opportunities. It demonstrates how private equity can be a powerful driver of growth and change.

Pragati India Fund

One of IFC’s recent investments, the Pragati India Fund, offers another good example of doing well and doing good.

The fund is a pioneering investment vehicle that will focus on economically under-developed states in India. These are areas where it has traditionally been a challenge to attract private investments – but where the changing political, social, and economic development dynamics offer new opportunities that are largely untapped. Sixty percent of Pragati’s investments target the country’s 8 poorest states.

IFC is investing up to $20 million in the new fund. The idea is to help Pragati provide growth capital to start-ups outside of major urban centers – adapting successful business concepts to small- and medium-sized enterprises in low-income states and rural regions. In India, small- and medium-sized businesses typically receive only 5 percent of all private equity capital, forcing them to rely on high-cost informal borrowing. The Pragati Fund is designed to fill that funding gap and support the development of India’s financial infrastructure.

As a co-investor, IFC can help increase the impact of the project – bringing not only capital but management expertise, which can help strengthen operations as well as environmental and social governance.

Just last month, Pragati India Fund made its first investment – in Jash Engineering Limited, a manufacturer of customized engineering goods for the water and waste water infrastructure sector. Jash is now expanding into manufacturing equipment for water treatment plants, and even generating clean power from residual water of the plants. The company is looking to move into municipalities across India.

With India’s government pushing for world class water treatment facilities, investing in a company like Jash offers real opportunities – to help these enterprises access finance, create jobs, promote inclusive growth, and contribute to cleaner, healthier water and energy for hundreds of thousands.

Supporting the Poorest

I hope more fund managers and investors will look for these types of opportunities – and look for them beyond BRICs and within frontier regions.

IFC is increasingly shifting its focus in this direction. Since 2007, over half the funds supported by IFC have been in the poorest countries supported by the World Bank’s International Development Association, or IDA. IFC's equity returns over the last 10 years in low-income countries, compared with IFC as a whole, provide a compelling case for investment.

Africa has been IFC's top performing region over the last 10 years, with a real rate of return of 25 percent compared to 18 percent for IFC worldwide.

Sub-Saharan Africa is also the region where IFC’s investments in private equity funds have grown the most, and where we have more private equity partners – a total of 38 – than anywhere else. In FY11, IFC committed new investments in 5 funds in Africa, and so far in FY12 we’ve invested $70 million in 3 funds.

We already have plans for 2 or 3 more funds this fiscal year – including 8 Miles Fund, a pan-African private equity fund backed by Bob Geldof.

8 Miles plans to make investments in growth areas across Africa such as agribusiness, consumer and retail health, telecommunications, banking and financial services. The target fund size is $450 million, with $15 to $40 million investments in 10 to 12 African companies with above-average potential for revenue growth and job creation. Investors partnering with IFC include the United Kingdom’s CDC, the African Development Bank, and Vital Capital Fund. J.P. Morgan will provide fund administration services.

Private equity is already changing the face of Africa – and funds such as 8 Miles recognize that there’s huge potential to do more. The fund’s name refers to the fact that, at their nearest points, Africa and Europe are only eight miles apart.

For much of Africa, however, the distance is far greater. Countries dealing with fragility and a history of conflict are home to the world’s poorest – the Bottom Billion, as Paul Collier pointed out in his 2007 book, though today, it’s more on the order of 1.5 billion.

In 2010, the World Bank focused on these countries in our World Development Report on Conflict, Development, and Security. One of the conclusions of that report was that private sector development is a key factor in infrastructure and logistics, local banking, service delivery, and job creation – to show early results as well as longer-term growth. Access to capital and finance is vital for putting these countries on the path to economic stability. But, of course, most fund managers aren’t ready to provide the risk capital and strategic advice that private equity provides.

That’s why IFC conceived of SME Ventures, an initiative to support local private equity fund managers and raise equity and advisory services funds in low income – and particularly post-conflict – countries. Today, we’re putting private equity to work is some of the most underdeveloped areas of the world.

Take Central Africa – a region rich in minerals, but with a history of fragility and instability. Private equity groups have traditionally focused on larger investments in the extractive industries. Yet it’s small- and medium-sized businesses that create the most jobs in any economy.

So two years ago, IFC committed up to $12.5 million to the Central Africa SME Fund. Managed by XSML, a Dutch SME fund manager, and Cenainvest, its partner based in Cameroon, the fund aims to mobilize a total of$25 million from other development finance institutions and the private sector. With offices and a team on the ground in the Democratic Republic of the Congo and the Central African Republic, the fund’s focus is on making investments and providing advisory services to the local business community, to help African entrepreneurs build sustainable businesses that create jobs and income.

The funds’ first investments in the DRC have been in a healthcare clinic, including new medical training for staff; a call center; and a food processing company for baby cereal, where the fund is also helping improve the company’s financial management and developing audited financial statements. In the Central African Republic, the fund is preparing to invest in an internet service provider.

The Central Africa SME Fund is also looking ahead. So, for example, it’s conducting a market study on fresh fruits for a fruit producer in Kinshasa, and helping prepare a business plan and financial projections for a cassava mill run by smallholders.

Through the SME Ventures initiative, IFC has also committed equity to funds for Liberia and Sierra Leone; Bangladesh; Nepal; and we are currently working on a fund for Bhutan.

And just last month, IFC made its first private equity investment in Haiti.

When Haiti was hit by a major earthquake in 2010, we knew that the Bank Group’s support to help the country recover, rebuild, and break its dependence on aid must include bringing in the private sector.

IFC has already committed five investments and significantly scaled up its advisory operations in Haiti. These projects are helping create 5,000 new jobs – as well as safeguard 5,000 existing jobs.

Now, IFC is committing up to $10 million to the Leopard Capital Haiti Fund to support small and medium-sized businesses.

With a team already on the ground in Port-au-Prince, the fund is raising $75 million in equity to invest in four main sectors: renewable energy; low- and medium-income housing; agribusiness; and hospitality. It’s also raising $4 million in donor money to provide technical and managerial assistance to companies that were thriving before the earthquake, but now want to upgrade their operational capacity and grow. At the same time, this Haiti Fund will work with its portfolio companies to enhance corporate governance, and environmental and social standards and practices.

It’s an exciting new partnership for IFC. Our Private Equity Funds team has already catalyzed an additional $10 million from investors – and will continue to support the Leopard Capital team in raising more.

We hope this will encourage more investors to invest in Haiti’s potential.

Importance of Openness

Over the past five years, I’ve seen this private equity conference grow in size, scale, and quality. I’ve also seen, from my discussion with our clients in developing countries around the world, just how important they consider the capital and expertise that private equity brings in helping their countries grow and raise standards.

Yet the role of private equity has come under increasing scrutiny and political focus in the developed world – not least here in the United States. For some, the very term is synonymous with corporate raiders, asset strippers, and secretive back room deals.

The private equity industry needs to respond to the demand for higher standards of openness, transparency, and integrity. Private Equity should be a major part of the new investment climate in emerging markets. It should increase overall investor confidence.

I recognize that some investment professionals aren’t used to being in the public eye. But you are now. And transparency is the best antidote to conspiracy theories.

At the World Bank Group, we can see the transformative power of openness. Our new information and knowledge-sharing initiatives may turn out to be the most important legacy of my tenure at the Bank Group.

Our Access to Information policy releases to the public vast numbers of documents about the Bank’s projects, analytic and advisory activities, and proceedings of the Board. It’s now viewed as the “gold standard” for financial institutions.

Our Open Data initiative has unlocked our world-class knowledge and development data. We now provide free access to more than 7,000 indicators, including GDP data and development statistics, meaning that anyone – from a PhD student, to an NGO, to a farmer, or even a private equity investor – can download our data, analyze it, and come up with solutions.

Our Mapping for Results website shares geo-spatial information on more than 2,500 Bank-funded projects.

Now we are beginning to work with communities to map their own infrastructure – clinics, wells and schools. The next step is to allow people to use hand-held devices to let the Bank know, from wherever there are in the world, what is really going on with our projects and investments.

These initiatives are making the World Bank Group more open, transparent, and accountable; helping us fight corruption and build better governance; and getting us ready for a new era of democratized development.

The investment community can benefit from greater openness as well.

Conclusion

I have always enjoyed taking part in this conference. I have spoken at it every year during my time at the World Bank Group.

I wanted to come here again, for the fifth time, because I am convinced that private equity investments can be one of the most powerful and important agents of change for developing countries: boosting local economies and creating jobs; improving governance and sustainability standards in private industry and capital markets; transforming thinking about growth; reducing poverty and creating hope.

That Change agenda is the core of our mission at the World Bank Group. It’s what we strive to do every day. It’s why private equity – and this conference – is important to me.

The success of this event demonstrates that I’m by no means alone in this conviction.

So I want to thank you again for joining us today. I hope your time at this conference opens new insights and creates new partnerships for all of you – and for the World Bank Group.

But most of all, I hope that it affirms your commitment to doing well and doing good – to using the power of private equity to support people in developing markets who want to create, build, and seize new opportunities.

That can be a lasting legacy for all of us.

Thank you.

The Kyrgyz Economy: Reforms Needed for Diversification and Productivity

2012-05-15T11:01:17.000Z

BISHKEK, May 15, 2012 – The investment climate and other obstacles to the development of the private sector were the main topics of discussion at a roundtable organized jointly by the Government of the Kyrgyz Republic and the World Bank today.

As requested by the Government, the World Bank’s Private Sector Development team, in coordination with involved state agencies, carried out a study, “Investment Climate in the Kyrgyz Republic: Reform Opportunities”, identifying areas of improvement in the investment climate of the country, and provided recommendations to address them.

The findings of this study, and other issues related to the development of the private sector, were presented during the round table with participation of high level officials, private sector representatives, and members of the donor community. The round table was co-chaired by Joomart Otorbaev, the Deputy Prime Minister, and Philippe Le Houérou, the WB Vice President for Europe and Central Asia.

“The World Bank supports the Kyrgyz government’s program to decisively implement reforms to transform the potential of the private sector into reality,” said Vice President Le Houérou at the round table.

There is still much room for the private sector to grow and provide jobs and economic growth. For the private sector to serve this function, the main obstacles to its growth need to be addressed through a comprehensive private sector development strategy.

Economy-wide efforts to eliminate barriers for all enterprises should be complemented by removing industry-specific obstacles to enable the growth of promising sectors, and be also included in the short- and medium term Private Sector Development strategy. Some of the areas of improvement discussed during the round-table included the governance framework, firm productivity, access to skilled labor and finance, infrastructure, regional trade and investment links, the business legal framework, and the gap that exists between regulations and their implementation.

“The economic growth model in the Kyrgyz Republic is not sustainable in the long run, as it heavily relies on gold and remittances, and concentrated export markets for growth. To achieve sustainable growth, the economy of the Kyrgyz Republic needs to become both more productive and more diverse,” said Rachel (Raha) Shahidsaless, Private Sector Development Specialist, and the principal author of the WB study.

The World Bank acknowledged the Kyrgyz government’s commitment to reforms, as well as the initiatives undertaken and planned to remove obstacles to the development of the private sector.

The Bank expressed readiness to provide technical assistance to the government in designing a short- and medium term private sector development strategy that will be prepared and implemented in consultation and coordination with the public and private sector stakeholders, Kyrgyz experts, and the donor community.

Turkey - Fourth Export Finance Intermediation Loan (EFIL IV) : P096858 - Implementation Status Results Report : Sequence 09

2012-05-15T04:00:00.000Z

The project Private Sector Competitiveness has changed to Active

2012-05-15T04:00:00.000Z

The project Private Sector Competitiveness has changed to Active. To see more information, see the project information in the World Bank project database

The objective of the Private Sector Competitiveness Project for Tajikistan is to remove key constraints to business development and investment by: (i) simplifying business registration and construction permitting processes; (ii) improving regulations and infrastructure underlying access to financial services; and (iii) encouraging development of the mining industry, where Tajikistan has a competitive advantage. There are three components to the project, the first component being strengthening the business environment. This comprises of three sub-components: completion of establishment of an online one-stop-shop for business registration; improvement of the regulatory framework for provision of construction permits, and establishment of a single window for processing construction permits and inspections; and improvement of the financial infrastructure. The second component is the encouraging the development of the mining industry. This component will aim at supporting the development of an conducive business environment in the mining sector, which has a high competitiveness potential in Tajikistan, leveraging the new Competitiveness Partnerships Initiative (CPI) developed under the Finance and Private Sector (FPD) network of the Bank. Finally, the third component is the project management.

The project Third Development Policy Operation has changed to Closed

2012-05-15T04:00:00.000Z

The project Third Development Policy Operation has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Third Development Policy Operation Program (DPO-3) for Armenia is to address vulnerability by protecting the poor and supporting greater human capital development, while improving competitiveness by alleviating a selected set of private sector and governance constraints. After a large economic contraction in 2009, the economy recovered in 2010-11. Armenia was hit hard by the global crisis with real Gross Domestic Product (GDP) falling by more than 14 percent in 2009. Growth resumed in 2010 at 2.1 percent and is expected to reach 4.6 percent in 2011. The economy has benefitted from gradually rising remittances, stronger inflows of foreign direct investment (FDI) and increased exports (mainly in the mining and tourism sectors). Both poverty and inequality increased significantly in the wake of the crisis. This operation completes the programmatic series that started in 2009. The programmatic DPO series is central to the Bank's current Country Partnership Strategy (CPS) for Armenia which was prepared against the background of the 2009 global economic crisis to support the efforts of the government to address vulnerabilities resulting from the crisis and to strengthen competitiveness for post-crisis growth. The DPO-3 in the amount of US$80 million supports a reform program to: (i) address vulnerability by protecting the poor and supporting greater human capital development; and (ii) strengthen competitiveness by providing a more favorable private sector environment and strengthening governance. Measures supported by the DPO-3 program include expenditures on key social safety net programs along with their improved targeting, and improving access and quality of basic social services for pre-school and hospital services. The program also supports measures to establish a one-stop shop for business registry, amendments to the Law on Inspections to reduce discretion and increase transparency, introducing a fully functioning green channel by default for customs clearance, and issuing regulations to implement the new mining code to enhance investments.

Uzbekistan - Rural Enterprise Support Project Phase II : P109126 - Implementation Status Results Report : Sequence 07

2012-05-13T04:00:00.000Z

South Eastern Europe and Balkans - Neretva and Trebisnjica River Basin Management Project (BiH/Croatia) : P084608 - Implementation Status Results Report : Sequence 06

2012-05-13T04:00:00.000Z

Main report

2012-05-13T04:00:00.000Z

Emerging Europe and Central Asia, the region made up of the countries of Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS), is a major energy supplier to both Eastern and Western Europe. However, the outlook for both primary and derivative energy supplies is questionable, with a real prospect of a significant decline during the next two decades. Western Europe is heavily dependent on energy imports from this region. It will therefore be affected by declines in primary energy supplies. But Western Europe has the financial capacity to secure the energy supplies it needs (albeit at the expense of others). In contrast, the region's energy-importing countries are caught between Western Europe, which has increasing import needs, and the region's exporters, whose exports will likely decline. These countries face the prospect of being squeezed both financially and in terms of energy access. This difficult prospect is compounded by the deterioration of the region's energy infrastructure, including power generation and district heating. Although the public sector will have to finance a portion of these investments, it will not have the capacity to meet the full investment needs. It is therefore essential that countries in the region move quickly to put in place an enabling environment to support investment in the sector.

The World Bank and the Kyrgyz Republic: A strengthened partnership: $200 Million Committed Since July 2010

2012-05-11T10:21:34.000Z

In the difficult year of 2010, the World Bank led the Joint Economic Assessment to identify immediate emergency needs, initiated and organized the July 2010 Donors Conference, and tripled the value of project approvals from June 2010 to June 2011 to adequately respond to the country’s urgent recovery needs.

The rapid response of the World Bank to the events of 2010 was acknowledged and praised by the Kyrgyz Government. Since the Donor Conference the Bank has approved $200 million in new projects, of which around $100 million in grants.

The Bank’s Interim Strategy Note (ISN) was approved in 2011 and covers the period from August 2011 to June 2013. The need for an interim strategy approach was underscored by the fragile political, social and economic situation in the country in the aftermath of 2010 events. The ISN focuses on the country’s recovery and stabilization needs, while paving the way for long-term development. The World Bank will begin discussing the next strategy with government this year.

The Bank is now playing a major role in supporting the new government’s active governance and anti-corruption reform program, either with grants or from the World Bank’s own operating budget:

Development planning and public finance management: macro-economic forecasting, preparation of the Medium Term Development Program, the annual budget preparation process, establishment of a single Treasury account; treasury computerization; multi-year budgeting; the chart of accounts, civil service pay and grading; internal auditing, procurement.
The financial sector: accounting standards, anti-money laundering, bank resolution, the privatization of Zalkar Bank, bank supervision, the framework for troubled banks.
Investment climate: the commercial legal system; the sub-soil law, the subsoil regulation, the award of the Togolok gold concession for bidding, and road asset management.
Private sector development: preparation of a medium term PSD strategy including a short term action plan, SOEs corporate governance, competitive industries development, technologies.

All these advisory services were provided in response to specific requests from government entities or the National Bank.

Below is the brief summary of the World Bank-supported projects in the Kyrgyz Republic (July 2010 - Dec.2012):

Emergency Recovery Project, US$70 mln. The project supports implementation of the government's emergency program for social reconciliation, recovery and reconstruction.

US$ 28 million was disbursed to support the state budget; US$ 6 million will support the Ministry of Education’s request for procurement of books, computers, and furniture for schools.
Essential equipment, goods, and materials have been provided to the power distribution companies to urgently restore the power to the damaged districts.

Two Additional Financings (AF) for the National Road Rehabilitation Project (Osh-Batken-Isfana), US$26 mln. The first AF in the amount of $10 mln. to the on-going NRRP finances road repair within Osh city and rehabilitation of roads within and around the cities of Osh and Jalal-Abad. The second AF in the amount of $16 mln. will scale up project activities through the rehabilitation of an additional section of the Osh-Batken-Isfana road corridor (including 18 km long Nookat Pass) and the provision of technical assistance to improve road safety planning and road asset management in the country. Currently, the Government is negotiating with the Bank a follow-up project to complete this road construction.

AF for the Second On-Farm Irrigation Project, US$15 mln. 34000 farmers country-wide within the respective 17 Water Users Associations will benefit with the rehabilitation and management of their irrigation systems and contribute to higher agricultural productivity.

AF for the Disaster Hazard Mitigation Project, US$1 mln. The project has reduced the impact of uranium tailings and waste dumps in Mailuu-Suu. Additional financing was secured to address newly discovered quantities of radioactive waste, repair flood damage to project infrastructure and implement a monitoring program for radionuclides in Mailuu Suu’s drinking water supply.

Economic Recovery Support Operation, US$30 mln., supports implementation of the government policy reforms aimed at stabilizing the economy, strengthening governance, and safeguarding social protection.

¤ The authorities have taken measures to re-assert control over capital spending and have tightened standards and enhanced transparency on the management of the budget and public assets. The off-budget Development Fund was abolished.

¤ Critical steps have been taken towards establishing greater transparency over energy sector accounts and operational performance; efforts to raise transparency standards in mining have resulted in the country's achieving full compliance with the norms of the Extractive Industries Transparency Initiative (EITI).

¤ Measures taken to ensure financial stability allowed the National Bank to provide timely response to manage the financial stress within a major bank and prevent contagion.

¤ The authorities have raised the level of general social benefits and reformed the eligibility criteria to improve targeting.

Second AF for the Health and Social Protection Project, US$24 mln. The Project supports implementation of the government’s Manas Taalimi (MT) and Den Sooluk Health Reform Programs and strengthening the administrative systems of the Ministry of Social Development to enable social protection to become more effective at targeting assistance and subsidies.

AF for the Bishkek & Osh Urban Infrastructure Project, US$ 15.8 mln., helps to improve the living conditions in semi-informal settlements (novostroiki) and other communities in Bishkek and Osh. It will also help continue the municipal and social infrastructure investments to the country’s 23 small towns, and finance community-level investments.

In Bishkek the project supports the construction of the Bashkarasuu water production plant with about 6.5 km of transmission main (aqueduct) to connect the plant with the existing Bishkek Water Utility network and the Ak-Ordo novostroiki; in Batken - construction of new chlorination plant: construction of distribution networks in Kyzyl Chol and Chet Bulak districts; in Isfana - construction of a new well-field and networks in town center; in Naryn - rehabilitation of the “West” well-fiel, construction of supply main to Tosh Bulak novostroika; in Talas - replacement of sewer collector, installation of standby sewer pump.

Financial Sector Development Project, US$ 13 mln. will enhance financial sector stability and increase access to finance throughout the country, including remote rural areas. Those living in remote or rural areas will get improved access to financial services, through new points of sales in post offices, possibilities to better leverage their assets to obtain loans, greater access to safe deposit facilities, and expanded payment and remittance services. Given the explicit targeting of women as good clients by many microfinance organizations and credit unions, it is expected that women will particularly benefit from this project.

The last three projects are pending ratification by the Parliament to become effective.

###

Contacts: Dinara Akmatbekova, (996 312) 45-40-40, dakmatbekova@worldbank.org

For more information on the World Bank’s activities in Kyrgyz Republic, please visit:
http://www.worldbank.org.kg

The World Bank Europe and Central Asia Vice President,Philippe Le Houérou, Visiting Kyrgyz Republic

2012-05-11T10:15:58.000Z

BISHKEK, May 10, 2012 – Mr. Philippe Le Houérou, the World Bank Vice President for Europe and Central Asia Region is visiting Kyrgyz Republic on May 14-17, 2012. During his four-day stay, he will meet with the President Almazbek Atambayev, Prime Minister Omurbek Babanov, key members of the Kyrgyz Government, as well as with the members of the Parliament, representatives of the diplomatic community, development partners and private sector.

Mr. Philippe Le Houérou’s visit, as part of his Central Asian tour, will focus on financial, economic and social developments and challenges in Kyrgyzstan, the Cabinet’s governance and anti-corruption reforms, and the ongoing close partnership between Kyrgyz Republic and the World Bank. He will also pay visit to the World Bank-supported agriculture project sites in Bishkek and Chui valley to discuss results achieved so far and meet with project beneficiaries.

“I am pleased to announce Mr. Le Houérou’s visit to the country”, says the WB Country Manager for Kyrgyz Republic Alex Kremer. “As the 20th anniversary of the World Bank-Kyrgyzstan partnership approaches, it is time not just to celebrate its achievements, but also to tackle jointly the country’s pressing governance and development challenges”.

Philippe Le Houérou became Vice President for the Europe and Central Asia region in August 2009.

Born in Montpellier, France, Le Houérou grew up in North Africa and Italy and went on to attend the Institut d'Etudes Politiques de Paris (France), followed by an MBA at Columbia University in New York and a Ph.D in International Economics from the Institut d'Etudes Politiques de Paris.

Le Houérou joined the World Bank as part of its Young Professionals Program and has worked in the East Asia, Latin America, Africa, and Europe and Central Asia regions.

In the mid-1990s, he served as Country Economist for the Russia program and advised on budget management and public expenditure issues. After Russia, Le Houérou worked on poverty and economic issues in southern Africa, including a stint as the Country Manager for Madagascar, where he supported the government’s reform program and the opening up of the country’s economy.

In May 2006, Le Houérou became Vice-President of Concessional Finance and Global Partnerships (CFP). In this position he worked with donor countries to replenish the resource envelope of the International Development Association (IDA) - the Bank’s concessionary loan arm that supports development programs in the poorest countries with long-term, interest-free credits and grants. Le Houérou twice led the team that successfully replenished IDA. He also oversaw a reform of donor trust fund management and innovative finance methods for the World Bank Group. In between the two IDA efforts, Le Houérou served as acting Vice-President of the World Bank’s Information Solutions Group, which supports the Bank’s business strategy and operations through cost-effective and efficient information and technology solutions.

As Vice President for the World Bank’s Europe and Central Asia region, Le Houérou supervises 800+ staff working in headquarters, 23 country offices, and 2 satellite offices, serving 30 countries.

Le Houerou will be accompanied by Mr. Saroj Kumar Jha, the WB Regional Director for Central Asia, as well as by the WB country team members.

The World Bank’s overall mission in the country is to promote economic growth, reduce poverty, and encourage a better quality of life. The Kyrgyz Republic obtains finance from the World Bank on highly concessional terms – 45% is pure grant, and 55% loans. The loans attract no interest and only a 0.75 percent service charge. Credits are repayable in 40 years, including a 10-year grace period, while grants require no repayment. The World Bank also offers advisory services free of charge from its own operating budget.

The Kyrgyz Republic joined the World Bank Group in September 1992. Since then, the World Bank has been a leading development partner with commitments of US$ 1,089 billion (in the form of grants and highly concessional credits) and US$ 882.8 million disbursements. The current portfolio сconsists of 17 active projects worth US$ 355.43 million focusing on private, financial and energy sectors, transport and infrastructure development, and health care reform.

Contacts:
In Bishkek: Dinara Akmatbekova, (996 312) 45-40-40 , dakmatbekova@worldbank.org
In Washington: Elena Karaban, (202) 473-9277, ekarabanan@worldbank.org

For more information on the World Bank’s activities in Kyrgyz Republic, please visit:
http://www.worldbank.org.kg

Municipalities in FYR Macedonia to Benefit from Increased Funding for Infrastructure Improvements

2012-05-11T10:07:17.000Z

NEWS RELEASE

2012/442/ECA

македонски

Washington, May 10, 2012 – The World Bank’s Board of Executive Directors approved today an additional financing loan of EURO 37.2 million for the FYR Macedonia Municipal Services Improvement Project. The project puts transparency, financial sustainability and delivery of targeted municipal services for the citizens of FYR Macedonia at the core of its intervention.

The additional financing complements an initial loan of US$25 million and aims to help the country in responding to the dual challenge of increasing investments in municipal services and infrastructure, whilst tackling shortcomings in municipal performance and local capacity. The money will support the Government of FYR Macedonia program for 2011-2015, which underscores the importance of investments in urban infrastructure and municipal services to support economic growth and employment.

“The project is part of FYR Macedonia’s efforts to accelerate economic growth and increase citizens’ living standards through improving municipal services, while at the same time improving governance, transparency and financial sustainability of public service delivery,” said Björn Philipp, World Bank project team leader. “The project also supports the government’s overarching goal to meet conditions for EU membership.”

To date the original project has helped deliver better municipal services to towns across FYR Macedonia. In the town of Kocani, 11,000 residents are now enjoying water supply 24-hours a day. The local water utility company has achieved a reduction in water losses and improved its operating efficiency. In Bogdanci municipality, home to over 8,000 people, there’s today 100 percent coverage with public street lighting and 47 percent of energy savings have been achieved. In the capital of Skopje, over 11,500 households have access to waste collection services and waste selection at source has been introduced for over 4,800 households through a pilot project.

Going forward the additional funding will complement support under the original project through: i) sub-loans to municipalities for investments in the water and sanitation services, solid waste management and other revenue-generating or cost saving high-priority areas; ii) assistance to municipalities and their communal service enterprises in strengthening their capacity to provide public services, communications and public outreach; and iii) provision of investment grants to municipalities as a reward for initiatives leading to service delivery improvements. These interventions aim to support municipalities in FYR Macedonia to take full advantage of the decentralization process, including access to EU pre-accession resources, and help municipal governments play a greater role in delivery of a range of public services.

FYR Macedonia joined the World Bank in 1994. Since then, commitments to the country have totaled more than US$800 million. The current portfolio includes 10 projects worth US$280 million. Areas of support include transport, energy, social assistance, business environment, and agriculture.

Contacts:
In Washington: Victor Neagu, (202) 458-2736, vneagu@worldbank.org
In Skopje: Denis Boskovski, (389) 23 117-159, dboskovski@worldbank.org

For more information about the World Bank in Macedonia: http://www.worldbank.org.mk
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Општините во Македонија ќе имаат корист од зголеменото финансирање наменето за подобрувања во инфраструкутрата

2012-05-11T10:01:01.000Z

Известување до медиумите

2012/442/ECA

English

Бордот на извршни директори на Светската банка вчера го одобри дополнителниот финансиски заем во вредност од 37,2 милиони евра за Проектот за подобрување на општинските услуги во Македонија. Проектот ја промовира транспартентноста, финансиската одржливост и испораката на целните општински услуги за граѓаните на Македонија.

Дополнителното финансирање го комплетира почетниот заем од 25 милион долари и има за цел да и помогне на земјата во двојниот предзвик од зголемените инвестиции во општинските услуги и инфраструктура, истовремено опфаќајќи ги недостатоцијте во општинските резултати и локалните капацитети. Средствата ќе ја поддржат програмата на Владата на Македонија за периодот 2011-2015, што го потенцира значењето на инвестициите во урбаната инфраструктура и општинските услуги за поддршка на економскиот раст и вработувањето.

"Проектот е дело од напорите на Македонија да го забрза економскиот раст и да го зголеми животниот стандард на граѓаните преку подобрување на општинските услуги, истовремено подобрувајќи го владеењето, транспартеноста и финансиската одржливост на испораката на јавните услуги“ рече Бјорн Филип, тим лидер на проектот на Светска банка. “Проектот, исто така, ја поддржува сеопфатната цел на владата за остварување на условите за пристап кон членство во Европската унија“.

До сега проектот помогна во испорака на подобри општински услуги во градовите во Македонија. Во Кочани 11,000 жители сега се обезбедени со 24-часовна испорака на вода. Локалното водостопанско претпријатие постигна намалување во водените загуби и ја подобри нивната работна ефикасност. Во општина Богданци, дом на повеќе од 8,000 жители, е постигнато стопроцентно покривање со јавно улично осветлување и 47 проценти заштеда на енергијата. Во главниот град Скопје, повеќе од 11,500 домаќинства имаат пристап до услугите за собирање на сметот и селекција на сметот е достапна за повеќе од 4,800 домаќинства преку пилот проектот.

Со понатамошно дополнително финансирање ќе се комплетира поддршката во првичниот проект преку: (i) подзаеми на опшитините за инвестиции во услугите за вода и канализација, управување со цврстиот отпад и други за генерирање на приходи или други дејности за заштеда на трошоци; ii) помош до општините и нивините претпријатија за комунални услуги во зајакнување на нивните капацитети за обезбедување на јавни услуги, комуникација и достигнувања; iii) обезбедувањ на инвестициски грантови за општините како награда за иницијативи кои ќе доведат до подобра испорака на услугите. Овие интервенции се со цел да ги поддржат општините во Македонија да извлечат максимална корист од процесот на децентрализација, вклучувајќи го пристапот до средствата од претпристапните фондови во ЕУ и да им помогне на општинските власти да имаат поголема улога во испораката на голем број јавни услуги.

Македонија пристапи кон Светска банка во 1994 година. Од тогаш, обврските кон земјата изнесуваат повеќе од 800 милиони долари. Сегашното портфолио вклучува 10 проекти во вредност од 280 милиони. Дејностите на поддршка ги вклучуваат транспортот, енергијата, социјалната помош, деловното опкуржување и земјоделството.

Контакти:
Во Скопје: Денис Бошковски, (389) 23 117-159, dboskovski@worldbank.org

За повеќе информации за Светска банка во Македонија: : http://www.worldbank.org.mk
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A World Bank US$ 10 million Grant Targets Improvements in the Business Environment and Tajikistan’s Mining Sector

2012-05-11T06:49:32.000Z

WASHINGTON, May 10, 2012 – Tajikistan’s entrepreneurs and residents of mining development communities will benefit from a US$ 10 million grant, approved today by the World Bank Board of Executive Directors, for the Tajikistan Private Sector Competitiveness Project. The project focuses on critical areas in need of reforms which can generate important improvements in the country’s business environment and capitalize on Tajikistan’s comparative advantage in the mining sector.

The first ever private sector investment operation in Tajikistan to draw direct funding from the International Development Agency (IDA), an arm of the World Bank Group, the project will focus on: (i) simplifying procedures for business registration and obtaining construction permits, (ii) improving financial infrastructure for better access to financial services, and (iii) encouraging the development of the mining industry where Tajikistan has a competitive advantage.

“The Government of Tajikistan believes the private sector must spearhead a new growth model for the country and the World Bank fully supports this vision. This operation will make it easier for entrepreneurs to start a new business and reduce the time spent by all firms on unnecessary administrative requirements,” said Marsha Olive, World Bank Country Manager for Tajikistan.

The Private Sector Competitiveness Project is developed in the framework of the World Bank’s Country Partnership Strategy for Tajikistan for 2010-2013, which emphasizes the need for removal of institutional barriers to economic growth, development of a highly competitive investment climate and paving the way for post-crisis recovery and sustainable development. The project supports the long-term strategic efforts of the Government of Tajikistan to increase the private sector’s share in growth and employment by improving the business environment and attracting more domestic and foreign investments.

As a result of the project entrepreneurs in Tajikistan would be able to register their businesses more easily through online one-stop-shops, get construction permits faster via a single window for processing construction permit applications, and have access to financing at lower costs thanks to improved financial intermediation and payment mechanisms. In the mining sector the project aims to create a more favorable legal and regulatory framework, to encourage new investments in mining, create jobs and new opportunities for local communities.

The current World Bank portfolio in Tajikistan consists of 14 projects with net commitments of US$225 million. The largest share of the portfolio is in the energy and water sector (35%), agriculture and rural development (31%), human development (education, health and social protection (30%), and economic policy and public sector (4%).

Contacts:

In Washington: Elena Karaban, (202) 473 9277, ekaraban@worldbank.org;

In Dushanbe: Faridun Sanginov, (992 48) 701 5800, fsanginov@worldbank.org

For more information about the World Bank’s work in Tajikistan, please visit: www.worldbank.org/tj

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For our YouTube channel: http://www.youtube.com/worldbank

Azerbaijan - NATIONAL WATER SUPPLY : P096213 - Implementation Status Results Report : Sequence 12

2012-05-11T04:00:00.000Z

Tajikistan - Land Registration : P089566 - Implementation Status Results Report : Sequence 21

2012-05-11T04:00:00.000Z

Uzbekistan - Drainage, Irrigation : P009127 - Implementation Status Results Report : Sequence 19

2012-05-11T04:00:00.000Z

Bosnia and Herzegovina - Enhancing SME Access to Finance : P111780 - Implementation Status Results Report : Sequence 04

2012-05-11T04:00:00.000Z

Croatia - Policy notes : a strategy for smart, sustainable and inclusive growth

2012-05-11T04:00:00.000Z

Signing the accession treaty with the European Union (EU) and its forthcoming membership to the EU are remarkable opportunities for Croatia to address a number of economic challenges and join the EU as a competitive and successful economy. The new Croatian government in its program for 2011-2015 seeks higher standards of living for its citizens through sustained economic growth and greater social cohesion. Given the legacies from the past, these tasks will require ambitious and credible policy decisions. Once it joins the EU, Croatia will also have to contribute to the Europe 2020 strategy for smart, sustainable and inclusive growth which calls on member states to set national targets in employment, innovation, education, social inclusion and climate or energy. These targets will also require concerted efforts in structural reforms by the Government of Croatia. A major priority for the coming two to three years will be to create fiscal space to absorb EU funds and avoid being a net contributor to the EU. Upon accession, the EU Structural and Cohesion funds available to Croatia will exceed Euro 1.5 billion a year. At the same time, Croatia will also be obliged to contribute about 680 million annually to the EU budget. A number of new member states have found it a challenge to access and absorb EU funds effectively and efficiently. This requires a lot of preparatory work to get projects ready now for the time when EU structural and cohesion funds can be accessed, as they represent a huge increase over pre-accession funds and a great opportunity to address Croatia's needs in transport and environment, as well as in innovation and modernization of production.

Turkey - Corporate bond market development : priorities and challenges

2012-05-11T04:00:00.000Z

The study is in response to a request by the Capital Markets Board of Turkey to assist them in developing the corporate bond market in line with best practices globally. The objective of this study is to carry out an assessment of the status of the corporate bond market in Turkey. The study identifies key impediments and solutions to sustainable development, and it presents a roadmap to address the key impediments to the development of a dynamic and robust corporate bond market. This study provides a comprehensive review of the Turkish corporate bond market: chapter two provides an overview of the Turkish economy and financial sector; chapter three discusses key impediments to the vibrant development of the corporate bond; chapter four looks at the Turkish bond market within global bond markets and gives a review of the Turkish government bond market; chapter five discusses issues relating to the investor base, factors constraining the growth of a broad and diversified investor base are highlighted; chapter six provides an overview of derivatives market in Turkey and discusses its important role in enhancing liquidity in the secondary markets for government and corporate bonds. The study concludes with a recommended roadmap to develop the corporate bond market in chapter seven. The annexes cover the latest corporate bond offerings in Turkey and examine the expected transaction costs. Survey details of the survey are also in the annex, and details on selected emerging market corporate bond markets and market issues relating to the legal, regulatory and tax frameworks for the bond market.

Municipalities in FYR Macedonia to Benefit from Increased Funding for Infrastructure Improvements

2012-05-10T19:00:00.000Z

Washington, May 10, 2012 – The World Bank’s Board of Executive Directors approved today an additional financing loan of EURO 37.2 million for the FYR Macedonia Municipal Services Improvement Project. The project puts transparency, financial sustainability and delivery of targeted municipal services for the citizens of FYR Macedonia at the core of its intervention.

“The project is part of FYR Macedonia’s efforts to accelerate economic growth and increase citizens’ living standards through improving municipal services, while at the same time improving governance, transparency and financial sustainability of public service delivery,” said Björn Philipp, World Bank project team leader. “The project also supports the government’s overarching goal to meet conditions for EU membership.”

Contacts:

In Washington: Victor Neagu, (202) 458-2736, vneagu@worldbank.org

In Skopje: Denis Boskovski, (389) 23 117-159, dboskovski@worldbank.org

For more information about the World Bank in Macedonia: http://www.worldbank.org.mk

Visit us on Facebook: http://www.facebook.com/worldbank

Be updated via Twitter: http://www.twitter.com/worldbank

For our YouTube channel: http://www.youtube.com/worldbank

For more information, please visit the Projects website.

A World Bank US$ 10 million Grant Targets Improvements in the Business Environment and Tajikistan’s Mining Sector

2012-05-10T19:00:00.000Z

Contacts:

In Washington: Elena Karaban, (202) 473 9277, ekaraban@worldbank.org;

In Dushanbe: Faridun Sanginov, (992 48) 701 5800, fsanginov@worldbank.org

For more information about the World Bank’s work in Tajikistan, please visit: www.worldbank.org/tj

Visit us on Facebook: http://www.facebook.com/worldbank

Be updated via Twitter: http://www.twitter.com/worldbank

For our YouTube channel: http://www.youtube.com/worldbank

For more information, please visit the Projects website.

Bosnia and Herzegovina - Real Estate Registration Project : environmental management plan

2012-05-10T04:00:00.000Z

The Real Estate Registration Project for Bosnia and Herzegovina activities will focus on cadastre and land registry data updating and harmonization and integration of this data in urban areas. Negative impacts includes: end-of-life equipment, office furniture; other miscellaneous waste; noise; dust; site organization and restoration; generation of solid waste on premises; waste water; and hazardous waste. Mitigation measures includes: 1) reuse and recycling whenever possible; adequate disposal at approved and appointed disposal site in other cases; 2) disposal of non-recyclable waste organized with municipal service providers; no burning or illegal dumping; 3) handling of hazardous wastes has to be documented; 4) working hours limited to daily shifts; 5) ensure minimal disruption to other users of the building; 6) watering or coverage of dusty materials; adjusting the speed of vehicles in transport; 7) dust from demolition works can be minimized by enclosing the object; workers should wear appropriate equipment; and 8) buildings should have contractual agreements with local public utilities on waste collection and management.

Kyrgyz Republic - Agricultural Investments and Services Project : procurement plan

2012-05-10T04:00:00.000Z

Main report

2012-05-10T04:00:00.000Z

The Power Transmission Project objective is to improve the security, reliability and quality of energy supply, and, therefore, facilitate unimpeded operation of the energy market, both domestically and internationally. The project will be restructured to extend the current June 30, 2012 closing date by two and a half years to December 31, 2014. The reason for the project restructuring is the delay in project start-up due to protracted effectiveness process and the construction seasonality for rehabilitation of transmission substations which will take three summer seasons (2012, 2013, and 2014) to complete.

Data sheet

2012-05-10T04:00:00.000Z

World Bank Urges Governments to Think Green for Inclusive Growth

2012-05-09T10:00:00.000Z

South Korea Pledges $40 million to Promote Green Growth for All

SEOUL May 9, 2012 –The World Bank today released a report urging governments to think green when pursing growth policies, which can be inclusive, efficient, affordable and above all necessary to sustain economic expansion in years ahead.

Launched at the Global Green Growth Summit in Seoul, Inclusive Green Growth: The Pathway to Sustainable Development, lays out an analytical framework that factors atmospheric, land and marine system limitations into plans for economic growth needed to further reduce poverty. The report debunks the myth that a green growth approach is a luxury most countries cannot afford – pointing instead to political barriers, entrenched behaviors and a lack of appropriate financing instruments as the chief obstacles.

“Truly remarkable gains have been made in health and social welfare since the 1992 Earth Summit in Rio de Janeiro, Brazil, yet too often progress has resulted in environmental degradation and resource depletion,” said Rachel Kyte, World Bank Vice President for Sustainable Development. “Decisions made today will commit countries to growth patterns that may or may not be sustainable in the future. Great care must be taken to ensure that cities and roads, factories and farms are designed and regulated in a way that raises standards of living while efficiently harnessing natural, human and financial capital.”

The report challenges governments to change their approach to growth policies, better measuring not only what is being produced, but what is being used up and polluted in the process. It asserts that assigning value to farmland, minerals, rivers, oceans, forests and biodiversity, and awarding property rights, will offer governments, industry and individuals sufficient incentive to manage them in an efficient, inclusive and sustainable manner. The World Bank strongly supports incorporating natural capital into national accounts and will be seeking country commitments at the United Nations Rio+20 Summit in Brazil next month.

The Government of Korea pledged $40 million to strengthen and expand the Bank Group's global green growth portfolio by tapping into and leveraging Korea's successful experience.

“We are delighted to partner with the World Bank Group and to share Korea’s experiences and expertise since making green growth our national strategy in 2008,” said Jaewan Bahk, Minister of Strategy and Finance. “The transition to green growth paths is not easy. Sharing know how and capacity is imperative if developing countries are to leapfrog inefficient and outdated growth and production patterns.”

At a high-level event held on the sidelines of the World Bank/International Monetary Fund Spring Meetings, other finance ministers expressed growing support for the concept of inclusive green growth.

The new World Bank Inclusive Green Growth report emphasizes five main points:

Greening growth is necessary, efficient and affordable – it is critical to achieving sustainable development.
Political barriers, entrenched behaviors and norms, and a lack of financing instruments are the chief obstacles to greening growth. Green growth must focus on the policies and investments that need to be made within the next 5-10 years – to avoid getting locked into unsustainable paths, damaging policy reversals and costly public health consequences.
Progress requires multi-disciplinary solutions, blending economics, political science, and social psychology – to tackle political economy constraints, overcome deeply entrenched behaviours and social norms and develop the needed financing tools.
Green growth is neither monolithic nor static – strategies will vary across countries, reflecting local contexts, preferences and resource bases. All countries, rich and poor, have opportunities to green their growth without slowing it.
Green growth is not inherently inclusive, but can be designed to be so. While better environmental performance will generally benefit the poorest and most vulnerable, green growth policies must be carefully designed to maximize benefits and minimize costs for them, particularly during the transition.

“There is a frequent misconception that poor countries cannot stimulate growth without degrading the environment and burning the cheapest and dirtiest sources of energy: coal, biomass and at times oil and gas,” said Kandeh Yumkella, Director General, United Nations Industrial Development Organization. “This simply isn’t true. Developing countries won’t replicate growth patterns of previous centuries, nor should they try. They need to grow smarter, greener and quicker. The natural environment, minerals and raw materials are the principal sources of capital in poor countries, and therefore must be rigorously protected while being responsibly harnessed.”

“This report makes a compelling case that boosting economic growth and improving social and environmental welfare are neither mutually exclusive nor cost-prohibitive,” Yumkella added. “Developing countries must overcome policy obstacles and institute investment incentives now as they make infrastructure and production decisions that will carry consequences for generations.”

An overview and the complete report can be found at www.worldbank.org/inclusivegreengrowth.

For more information please contact:

In Seoul: Fionna Douglas, +1 202.375.3172, fdouglas@worldbank.org

In Washington: Robert Bisset, +1 202.458.5191, rbisset@worldbank.org

In London: Derek Warren + 44 207 592 8402, dwarren@worldbank.org

For Broadcast Requests: Natalia Cieslik, +1 202. 458.9369, ncieslik@worldbank.org

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Управниот директор на Светска банка, Шри Мулани Индравати во дводневна посета на Македонија

2012-05-09T09:25:03.000Z

Известување за медиумите
2012/112/ECA

Скопје, 9 мај, 2012 – Управниот директор на Светска банка, Шри Мулани Индравати вчера пристигна во дводневна посета на Македонија, во рамките на нејзината Европска турнеја, која ја вклучува и посета на Турција.

Госпоѓа Мулани Индравати ќе има средба со премиерот Никола Груевски, заменик претседателот на влада и министер за финансии Зоран Ставрески, заменик претседателот за економски прашања Владимир Пешевски и министерот за труд и социјална политика Спиро Ристовски.

Разговорите со Владата ќе се фокусираат на моменталната политичка и економска состојба во земјата, и на начините на кои Светска банка може да помогне на земјата за постигнување на побрз, посеопфатен и поодржлив раст и да се приклучи кон Европската унија.

Госпоѓа Мулани Индравати ја искористи можноста да ја посети општината Боговиње, каде се сретна со градоначалникот на општината Хазби Идризи и се запозна со резултатите кои се постигнати преку проектот за Рехабилитација на на регионалните и локални патишта и Проектот за одржлива енергија, финансирани од Светска банка. Таа исто така се запозна со културата и историјата на земјата, посетувајќи ја Шарената џамија во Тетово и црквите Св. Спас и Св. Пантелејмон во Скопје.

Кратка биографија (EN)

Additional Financing Provided to Scale up Municipal Infrastructure Investments in Five Tajik Towns

2012-05-09T06:15:15.000Z

WASHINGTON, May 8, 2012 – Over 200,000 people residing in five Tajik towns - Kurgan-Tube, Farkhor, Dangara, Kulyab and Vose - will benefit from improved access to clean water and high-quality utility services. The World Bank’s Board of Executive Directors approved today an additional financing grant in the amount of US$11.85 million for the Tajikistan Municipal Infrastructure Development Project (MIDP). The grant will finance the costs of expanding investment in the water and sanitation sector and places a greater emphasis on institutional strengthening to ensure long-term improvements in the quality of people’s lives. US$2 million will be made available to mitigate the impact of exceptional spring flooding on households in the Khatlon Region.

The additional grant will assist the Government in identifying financing mechanism options to support the development of the water and sanitation sector, attract and leverage donor contributions. The latter component will also include piloting of metering and demand management program, piloting of Household Connection Subsidy program for small towns to improve equity of access to water supply, and piloting of modern billing and collection technology. The on-going activities will be scaled-up to strengthen capacity of the State Unitary Enterprise “Khojagiyi Manziliyu Kommunali” (SUE “KMK”) to provide centralized oversight over local utilities and to respond to emergency situations caused by natural disasters, through better equipment and flood protection measures along selected vulnerable river sections.

“The Bank has always placed a high priority on improving the quality of water services delivered to the people of Tajikistan, as well as helping ensure the sustainability of these improvements,” said Marsha Olive, World Bank Country Manager in Tajikistan.

The World Bank is committed to improving the operational and financial sustainability of the utilities sector in Tajikistan. Thus, in two of the five towns, at the request of the Tajik Government, the World Bank will pilot institutional strengthening measures, to complement infrastructure investments in water, sanitation and solid waste services. The pilot initiatives aim to increase the sustainability and performance of water supply services.

The original MIDP project, which is scheduled to end in August 2012, has successfully implemented municipal infrastructure investments in eight participating towns: Kurgan-Tube, Kulyab, Dangara, Istaravshan, Gharm, Vose, Kanibadam, Vahdat, through: i) financing the rehabilitation and repair of infrastructure and installations and the replacement of equipment at local branches of the SUE “KMK”, and ii) assisting the SUE “KMK” and its local branches in improving the management of basic municipal services delivery. As a result of the project, the eight participating towns have benefited from 146 percent increase in the number of people with access to an improved water source; an average of 20 percent increase in the number of daily access hours to water, and an average of 31 percent reduction in unaccounted water.

The Tajikistan Municipal Infrastructure Development Project is currently financed through a US$26.85 million grant from the International Development Agency (IDA), part of the World Bank Group, US$2.53 million co-financing from the Government of Tajikistan, in addition to US$88 thousand in contributions from project beneficiaries.

Contacts:

In Washington: Elena Karaban, (202) 473 9277, ekaraban@worldbank.org;

In Dushanbe: Faridun Sanginov, (992 48) 701 5800, fsanginov@worldbank.org

For more information about the World Bank’s work in Tajikistan, please visit: www.worldbank.org/tj

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Azerbaijan - Social Protection Development : P105116 - Implementation Status Results Report : Sequence 08

2012-05-09T04:00:00.000Z

Ukraine - Social Assistance System Modernization Project : P075231 - Implementation Status Results Report : Sequence 12

2012-05-09T04:00:00.000Z

Social safety net in the Kyrgyz Republic : capitalizing on achievements and addressing new challenges

2012-05-09T04:00:00.000Z

The present report was prepared upon the request of the Government of the Kyrgyz Republic to inform policy decisions on reforming the existing safety net. The report aims at providing analytical underpinning of the country's ongoing safety net reform, along with venue for policy discussions with the Government and stakeholders on the immediate as well as on the longer-term challenges related to designing and implementing of a modern national safety net. The report's focus is on the analysis of the poverty reduction impact, targeting accuracy and coverage of the existing non-contributory social benefits, the poverty-targeted Unified Monthly Benefit (UMB) in particular, with the objectives of recognizing the strengths on which the reform can capitalize, identifying opportunities for improvement and fostering consensus building among Kyrgyz policymakers regarding the options for reforming the UMB and the broader vision of public policy in social assistance and the feasible instruments for its implementation. The focus of the report on the UMB is also determined by the need of identifying safety net instruments for mitigating the adverse effects of the economic shocks which are already affecting ECA countries, including the Kyrgyz Republic, on the poor and vulnerable. The safety net in the Kyrgyz Republic faces multiple objectives: (a) to redistribute income to the poorest and most vulnerable, with an immediate impact on poverty and inequality; (b) to help households manage risks by maintaining consumption and assets in the outburst of shocks, such as the food, fuel, financial and economic crises; and (c) to protect the livelihoods of the negatively affected by structural reforms aimed at economic growth and efficiency gains.

Social safety nets in the Western Balkans : design, implementation, and performance

2012-05-09T04:00:00.000Z

This report provides a comparative perspective on the design, implementation, financing, and performance of the non-contributory cash transfer programs (social assistance) across the six countries in the Western Balkan region and benchmarks their performance against similar programs in other countries in Central and Eastern Europe. Primary focus of the analysis is the means-tested last-resort social assistance programs that exist in all six Western Balkan countries. The author examine their core features, taking stock of basic indicators of their scope and performance targeting accuracy, coverage and adequacy (generosity), and reviewing their financing, institutional set up, eligibility criteria, main design aspects, and implementation processes in the context of the main functions of social protection the three P's for equity, resilience and opportunity: (i) protection from destitution and losses of human capital; (ii) prevention against drop in wellbeing, income and expenditure shocks; and (iii) promotion of human capital development, opportunities, livelihoods and better jobs.

The project ADDITIONAL FINANCING MUNICIPAL INFRASTRUCTURE has changed to Active

2012-05-09T04:00:00.000Z

The project ADDITIONAL FINANCING MUNICIPAL INFRASTRUCTURE has changed to Active. To see more information, see the project information in the World Bank project database

The development objective of the Municipal Infrastructure Development Project (MIDP) for Tajikistan is to improve the availability, quality and efficiency of basic municipal services for the population of the towns which participate in the project. This project paper seeks the approval of the Executive Directors to provide an additional grant of SDR 7.7 million (US$11.85 million equivalent) to the project. The additional financing (AF) will help finance the costs associated with scaling-up of on-going activities and support additional activities to enhance the positive impact of the MIDP. The original project has successfully implemented municipal infrastructure investments in eight participating towns through (a) financing the rehabilitation and repair of infrastructure and installations and the replacement of equipment of local branches of the State Unitary Enterprise 'Khojagiyi Manziliyu Kommunali' (KMK), and (b) assisting KMK and its local branches to improve the management of the delivery of basic municipal services. The AF will continue to support five town's four existing towns and one new town. The on-going activities will be scaled up to i) expand physical investments in water supply, sanitation and solid waste management in an integrated manner in two towns, which borders Afghanistan and is one of the poorest and ii) strengthen KMK's capacity to provide centralized oversight over local utilities and to respond to emergency situations caused by natural disasters. The AF will also increase emphasis on institutional strengthening and sector reform by financing additional activities that pilot efforts to improve water service coverage and utility performance in select towns, and the development of a municipal sector strategy. Overall implementation arrangements including procurement and financial management for AF which proved to be satisfactory will remain unchanged. The AF will also enhance the ability of the Government of Republic of Tajikistan (GoRT) to better respond to disruption in services due to flooding, severe cold weather (snow) and earthquakes by financing utility services maintenance equipment, cement, fuel and gabion wire mesh. The restructuring consisted of the following: (i) a trigger of a new safeguard policy on involuntary resettlement as the project necessitated temporary land acquisition which was not originally envisaged during initial appraisal of the project; (ii) re-allocation of the grant proceeds from the unallocated category to other categories to finance activities which were originally envisaged under the project but were not sufficiently covered by the original scope; and (iii) extension of the closing date of the project from August 31, 2011 to February 28, 2012. The original Project Development Objective (PDO) will be revised to reflect the changes in scope of the AF. The revised PDO is to 'improve the availability, quality and efficiency of basic municipal services for the population of the towns which participate in the project. The geographical scope of the AF will be reduced to five urban centers which include cities previously covered by MIDP.

The project Irrigation Development Project has changed to Active

2012-05-09T04:00:00.000Z

The project Irrigation Development Project has changed to Active. To see more information, see the project information in the World Bank project database

The development objective of the Irrigation Development Project for Bosnia and Herzegovina is to improve the performance of the irrigation systems and the irrigation institutions to support agricultural producers in the project areas. There are three components to the project. The first component is infrastructure investment. This component will finance the implementation of irrigation and drainage infrastructure rehabilitation of about 12 Subprojects (SPs), of which 6 each located in Republika Srpska (RS) and Federation of Bosnia-Herzegovina (FBiH). The SPs are selected from the long-lists of potential sub-projects that were prepared by the two ministries. In FBiH this was based notably on proposals submitted by the cantons. The SPs are all located in existing agricultural land that in the past has been supplied with irrigation. In some of the SPs, the first priority will be on restoring or improving drainage. The main activities include rehabilitation with some construction, reconstruction, upgrading and modernization (only for the public/main and semi-public/secondary parts of the irrigation system, hence not on-farm), and also the introduction of new technologies that promote water use efficiency such as drip irrigation and low-pressure sprinklers. The second component is irrigation modernization. This component will support the capacity strengthening of the Ministries and Water Agencies in RS and FBiH, and participating municipalities and cantons in addressing: the new sector policies, and establishing and strengthening Water User Associations (WUAs). It will assist in developing Operations and Maintenance (O and M) arrangements for the introduced infrastructure/facilities, the fee determination, fee collection and management, and related water resources and irrigation management. The third component is project implementation support. This will cover costs of project management including Monitoring and Evaluation (M and E), safeguards, audits, Management Information System (MIS), the baseline and (final) impact assessment surveys, procurement and Financial Management (FM) training, and office and mobile equipment.

Montenegro - Healthcare System Improvement Project (Montenegro) : P082223 - Implementation Status Results Report : Sequence 16

2012-05-08T04:00:00.000Z

The project Second Sustainable Employment Development Policy Operation has changed to Active

2012-05-08T04:00:00.000Z

The project Second Sustainable Employment Development Policy Operation has changed to Active. To see more information, see the project information in the World Bank project database

The objectives of the Second Sustainable Employment Development Policy Operation (SEDPO-2) Project for Kosovo are to: (i) maintain a stable macroeconomic framework through strengthened budget and fiscal management and increased transparency, and accountability of public expenditures; (ii) lay institutional and legislative foundations for sustainable employment and growth. The proposed SEDPO-2 will focus on the following areas: improving public financial management, thus transparency and accountability of public finances; improving the investment climate to promote domestic and foreign investment; strengthening labor market institutions to provide targeted services to active unemployed persons; setting education qualification standards and accrediting education institutions to increase the quality and relevance of education and increasing education quality; and transforming information systems to improve beneficiary activation into the labor force.

The project Access to Finance for Small and Medium Enterprises has changed to Closed

2012-05-08T04:00:00.000Z

The project Access to Finance for Small and Medium Enterprises has changed to Closed. To see more information, see the project information in the World Bank project database

The overall objective of the Access to Finance for Small and Medium Enterprises is to support the development of Armenia's small and medium-scale rural businesses by improving the ability of farmers and rural entrepreneurs to access markets and by stimulating market-oriented private and public investments in rural areas. The project consists of four components to be implemented over four years. The major focus will be to support the continued development of commercial activities in the rural areas by improving market linkages, product quality, competitiveness and capacity of Armenian rural entrepreneurs and producers. The project will have a three-tiered approach by addressing critical gaps at the farm level, at the community level, and at the rural business and agro processor level. Regarding investment financing, the project provides resources for on-lending to farmers and farmer groups, agro-processors, and other agri-businesses through qualifying Participating Financial Institutions (PFIs).

World Bank’s Second Sustainable Employment Development Policy Operation for Kosovo focuses on Jobs

2012-05-03T22:00:00.000Z

WASHINGTON, May 3, 2012 - The World Bank’s Board of Executive Directors approved today Euro 23 million grant for the Kosovo Second Sustainable Employment Development Policy Operation (SEDPO-2). Additional grants of Euro 12.1 million provided by ten bilateral and multilateral donors (European Commission, Czech Republic, Denmark, Estonia, Finland, Italy, Norway, Sweden and Switzerland) and US$1.8 million provided by the United States will complement World Bank funding.

The operation supports important policy reforms for the country’s 1.8 million people, targeting improvements in the business environment to promote domestic and foreign investments; strengthening procurement and public financial management to increase transparency and accountability; strengthening labor market institutions to provide targeted services to unemployed persons and social assistance recipients; increasing the quality and relevance of vocational education institutions and consolidating Kosovo’s civil service.

SEDPO-2 is an important part of the proposed World Bank Group Country Partnership Strategy (CPS) for Kosovo for 2012-15, which focuses on inclusive growth and employment generation. Funds will be made available as the Government has implemented the agreed policy reforms focusing on improved transparency, budgetary and fiscal management, and sustainable employment.

The First Sustainable Employment Development Policy Operation (SEDPO-1) for Kosovo totaled US$30.9 million and was disbursed on December 30, 2011. Funds were provided to the Kosovo budget following the successful implementation of reforms focusing on sustainable employment and growth.

Contacts:

In Kosovo: Lundrim Aliu, laliu1@worldbank.org, (381) 38 224-454, #107

In Washington: Victor Neagu, vneagu@worldbank.org, (202) 458-2736

For more information on the World Bank Group’s work in Kosovo please visit:

www.worldbank.org/kosovo

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For our YouTube channel: www.youtube.com/worldbank

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For more information, please visit the Projects website.

World Bank to Help Farmers in Bosnia and Herzegovina Increase Crop Yields

2012-05-03T22:00:00.000Z

WASHINGTON, May 3, 2012 – The World Bank’s Board of Executive Directors approved today a credit in the amount of US$40 million for the Bosnia and Herzegovina (BH) Irrigation Development Project. The project aims to improve the performance of the country’s irrigation systems and help BH’s agricultural producers increase crop yields.

One fifth of Bosnia and Herzegovina’s workforce is employed in agriculture. Despite its fertile land and opportunities for high-value agricultural production the lack of irrigation facilities impact negatively on productivity and trigger crop yield losses that range from 20-40 percent in various parts of the country. Helping BH bring irrigation systems back into operation and improving the overall irrigation legal framework will generate sizeable benefits for the country’s farmers.

“This is an important project for producers in Bosnia and Herzegovina as it will enable high value horticulture crops and increased yields, which will subsequently increase their revenues”, said Anabela Abreu, World Bank Country Manager for BH.

The project will focus on high-priority investments targeting the rehabilitation and modernization of irrigation systems. The largest irrigation investment to date in the country, it will support BH’s efforts to align with EU irrigation policies and address issues of climate variability. Furthermore, it will focus on ensuring vulnerable farmers and women’s equal participation and access to project funds and facilities.

The World Bank portfolio of active projects in BH now includes 13 operations totaling approximately US$342.3 million. Areas of support include agriculture, energy, environment, health, social safety and employment, local infrastructure and private sector development.

Contacts:

In Sarajevo: Jasmina Hadžić, (387) 33 251-502, jhadzic@worldbank.org

In Washington: Victor Neagu, (202) 458-2736, vneagu@worldbank.org

For more information about the World Bank in BH: http://www.worldbank.ba

Visit us on Facebook: http://www.facebook.com/worldbank

Be updated via Twitter: http://www.twitter.com/worldbank

For our YouTube channel: http://www.youtube.com/worldbank

For more information, please visit the Projects website.

The project MOLDOVA AGRICULTURE COMPETITIVENESS PROJECT (GEF) is now in the pipeline.

2012-05-03T04:00:00.000Z

The project MOLDOVA AGRICULTURE COMPETITIVENESS PROJECT (GEF) is now in the pipeline. To see more information, see the project information in the World Bank project database

The project East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - 1b) has changed to Active

2012-05-03T04:00:00.000Z

The project East-West Roads Project (Almaty-Korgos Section): Western Europe - Western China International Transit Corridor (CAREC - 1b) has changed to Active. To see more information, see the project information in the World Bank project database

The development objectives of the East West Roads Project for Kazakhstan are to increase transport efficiency along the section of the Western Europe-Western China road corridor within Almaty Oblast and to modernize highway management on sections of the Western Europe- Western China road corridor. There are two components to the project. The first component of the project is to upgrade and construction of the road section within Almaty Oblast. This component will finance: civil works to support the upgrade and construction of the Almaty- Khorgos road section of the Western Europe-Western China road corridor within Almaty Oblast, including associated bypasses, bridges, interchanges, and ancillary facilities; and the provision of consulting services for management and supervision of civil works under the project. The second component of the project is modernizing highway management along the Western Europe-Western China road corridor. This component will finance related consultants services for the sub- components that will complement each other in assisting the reform.

The project Moldova Agriculture Competitiveness Project has changed to Active

2012-05-03T04:00:00.000Z

The project Moldova Agriculture Competitiveness Project has changed to Active. To see more information, see the project information in the World Bank project database

The development objective of the Agriculture Competitiveness Project for Moldova is to enhance the competitiveness of the agro-food sector by supporting the modernization of the food safety management system, facilitating market access for farmers, and mainstreaming agro-environmental and sustainable land management practices. There are four components to the project. The first component is enhancing food safety management. This component will finance activities aimed at enhancing human, institutional and technical capacity of the country's food safety management system, as well as ensuring regulatory harmonization with European Union (EU) requirements. Adoption of EU acquis on Sanitary and Phyto-Sanitary Standards (SPS) carries significant implications for state institutions in charge of food safety and quality, producers and consumers. EU regulations in these fields demand some of the highest standards in the world and consequently compliance by Moldova to these rigors would entail a lengthy and complex process that requires substantial financial efforts. The second component is enhancing market access potential. This component will finance activities aimed at improving marketability and market integration of Moldova's high value agricultural products specifically in the horticultural sector where the country has proven comparative advantages in the production of fruits and vegetables. The component will address institutional and market access elements of the competitiveness framework presented earlier by supporting government efforts in creating an enabling environment for voluntary farmer productive partnerships (business cooperatives or producer groups), and by assisting them in creating and expanding their asset base for the application of modern post-harvest technologies. The third component is enhancing land productivity through sustainable land management. This component will finance activities aimed at mainstreaming sustainable land management practices and technologies, and rehabilitation of anti-erosion shelterbelts. As part of the competiveness framework presented earlier, it would support governance and resource endowment/depletion aspects that can increase competitiveness of the agriculture sector by enhancing land productivity. The fourth component is project management. The component will support costs associated with project implementation, including operational and consulting costs for fiduciary, component coordination, monitoring and evaluation support to Ministry of Agriculture and Food Industry (MAFI) and MOE.

In Kazakhstan: Connecting the North and South

2012-05-02T17:08:26.000Z

In Kazakhstan: Connecting the North and South

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In Kazakhstan: Benefiting Before a Road is Built

2012-05-02T16:55:03.000Z

In Kazakhstan: Benefiting Before a Road is Built

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The project Serbia Public Enterprise Restructuring DPL 1 is now in the pipeline.

2012-05-02T04:00:00.000Z

The project Serbia Public Enterprise Restructuring DPL 1 is now in the pipeline. To see more information, see the project information in the World Bank project database

The project ADDITIONAL FINANCING FOR ENERGY II PROJECT has changed to Closed

2012-05-02T04:00:00.000Z

The project ADDITIONAL FINANCING FOR ENERGY II PROJECT has changed to Closed. To see more information, see the project information in the World Bank project database

The objectives of the Second Energy Project for Moldova were to: (a) improve the security and reliability of the electricity transmission system and wholesale electricity supply and facilitate unimpeded commercial operation of the power system and (b) improve the availability, quality, and efficiency of heating in selected buildings. The additional financing will scale up the second component of the project by improving the heating supply for around 18 additional public institutions located throughout the country (in 10 rayons /administrative units), including hospitals, educational buildings (schools and kindergartens), and social assistance centers. Financing additional improvements in supply and distribution of heat and demand side measures for heat and hot water consumption in selected public buildings will mitigate the adverse impact of energy price increases on vulnerable groups.

The project Secondary Education Project has changed to Closed

2012-05-02T04:00:00.000Z

The project Secondary Education Project has changed to Closed. To see more information, see the project information in the World Bank project database

The development objective of the Secondary Education Project is to support improvements of conditions for student learning in secondary education and in schools in sub-provinces with low enrollment rates. The purpose of this restructuring paper is to seek approval by the country director for the reallocation of funds among the existing activities. An additional allocation in the amount of Euro 2.045 million to component two to support the strengthening of quality assessment: this reallocation will scale-up existing activities under the student assessment sub-component by scaling up the training of staff for carrying out assessments and evaluations. An additional allocation in the amount of Euro 0.417 million to provide additional support for project implementation, as 809 additional schools is too benefited from the School Development Program (SDP). An additional allocation in the amount of Euro 6.77 million to support the expansion of the SDP.

World Bank and Global Environment Facility Support Moldova’s Agricultural Competitiveness and Food Safety Management System

2012-05-01T20:30:00.000Z

Washington, May 1, 2012 — The World Bank Board of Executive Directors approved today a US$ 18 million credit and a US$ 4.4 million Global Environment Facility (GEF) grant for the Moldova Agricultural Competitiveness Project. The project aims to enhance the competitiveness of Moldova’s agro-food sector through: (i) supporting the modernization of the food safety management system; (ii) facilitating market access for farmers; and (iii) mainstreaming agro-environmental and sustainable land management practices.

“The Moldova Agricultural Competitiveness Project will help enhance key elements of the country’s agriculture sector competitiveness by focusing on important institutional development aspects and direct support to farmers,” said Abdoulaye Seck, World Bank Country Manager for Moldova. “The GEF financed component will assist the Government’s actions to pilot and propagate a wide range of sustainable land management practices to reduce land degradation.”

The proposed project will contribute to the realization of the economic growth model described in the 2011-2014 Government of Moldova Program that is based on three pillars: investment, innovation and competitiveness. Agriculture is one of the largest sectors of the Moldovan economy and is regarded as a potentially important engine of growth. To this end, the project will support reforms aimed at enhancing export competitiveness, facilitating market access for farmers, supporting agricultural business development through consulting and training, ensuring regulatory harmonization with EU food safety requirements, attracting investments and achieving closer trade integration with the European Union through a Deep and Comprehensive Free Trade Agreement.

With GEF funding the project will provide regulatory and institutional support, capacity building for sustainable land management (SLM), and financial support for piloting SLM. Global environmental benefits will be achieved from increased stability of agro-ecosystems, increased levels of carbon sequestration, and reduced land degradation including erosion and pollution with agricultural chemicals. Specifically, the GEF funding will support methodological and analytical work for soil quality and land degradation risk-assessment, land quality certification, and standard setting to ensure that the best soil management practices are integrated in the policy and regulatory framework for food safety management.

The GEF unites 182 countries in partnership with international institutions, non-governmental organizations (NGOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives. Since 1991, GEF has provided US$ 9 billion in grants and leveraged US$ 40 billion in co-financing for over 2,600 projects in over 165 countries.

Since Moldova joined the World Bank in 1992, a total of US$ 880 million have been allocated to 42 operations in the country. Currently, the World Bank portfolio includes 11 active projects with total commitments of US$ 281 million. Areas of support include education, social assistance, e-governance, healthcare, energy, agriculture, business development, and others.

Contacts:

In Chisinau: Anatol Gobjila, agobjila@worldbank.org, (373) 22-200706

In Washington: Elena Karaban, ekaraban@worldbank.org, (202) 473-9277;

John Diamond, jdiamond@thegef.org, (202) 458-7953

For more information on the World Bank’s work in Moldova please visit: www.worldbank.org.md

For further information on the World Bank’s GEF program, visit: http://www.worldbank.org/gef

For more information, please visit the Projects website.

World Bank Group Continues Strong Partnership with Kazakhstan

2012-05-01T20:30:00.000Z

A New Country Partnership Strategy Launched for 2012 – 2017

WASHINGTON, May 1, 2012 – The World Bank’s Board of Executive Directors today discussed and welcomed a new World Bank Group Country Partnership Strategy (CPS) with Kazakhstan for 2012-2017. The objective of the Strategy is to help the Government of Kazakhstan advance implementation of country development agenda through a high impact program, concentrating on key priorities of competitiveness and jobs, improved governance through higher standards and accountability in public administration and service delivery, and safeguarding the environment. In addition, the International Finance Corporation (IFC) will promote the development of private sector through the investments and advisory operations in support of economic diversification, and the Multilateral Investment Guarantee Agency (MIGA) will continue to support financial and manufacturing sectors.

“Over the past decade, Kazakhstan has made impressive policy strides and built a record of strong macroeconomic management, strengthened public financial management, and shifted resources towards social services and critical infrastructure to improve the lives of its population,” said Sebnem Akkaya, World Bank Country Manager for Kazakhstan. “The new Country Partnership Strategy aims to work with Kazakhstan to broaden and deepen these achievements to help the country grow sustainably and inclusively through diversification, bolstering human capital, building world-class institutions, infrastructure and environmental standards. Our partnership is built on the premise of cutting-edge knowledge transfer, capacity enhancement and implementation support, bringing benefits that go well beyond funding.”

The main instrument of the strategy will be knowledge activities through the Joint Economic Research Program, complemented by selective investment projects in strategic high-impact areas. The CPS will continue the well-tested tradition of a flexible architecture that responds to the client’s development agenda, retaining focus on interventions where the Bank has a comparative advantage, drawing on its pool of knowledge from the frontiers of development research and experience.

The 2012 – 2017 Country Partnership Strategy was prepared in close dialogue with the Government of Kazakhstan and nongovernmental stakeholders to identify development priorities and ensure broad-based participation in the Strategy’s implementation. The strategy is organized around three broad areas of engagement:

1. Improving competiveness and fostering job creation, with a focus on (i) strengthening fiscal discipline and trade openness; (ii) expanding non-oil sector exports and employment; (iii) re-invigorating financial sector; (iv) strengthening knowledge for sustained growth, (v) improving energy transmission to poor areas; (vi) building transport connectivity, lowering costs;

2. Strengthening governance and public services, with a focus on (i) improving governance; (ii) strengthened budget and accounting institutions; (iii) reforming social protection system; (iv) sharpening strategic approach to health reforms;

3. Ensuring development is environmentally sustainable, with a focus on (i) safeguarding the environment; and (ii) raising energy efficiency.

The strategy also acknowledges the role Kazakhstan can play as a provider of experience, and assistance in the Central Asia region and in a broader regional context. The Bank will continue to promote regional cooperation in energy, water, transport, trade, and communicable diseases.

IFC’s strategy in Kazakhstan is fully consistent with its regional approach focusing on access to infrastructure, strengthening the financial sector, and supporting diversification and competitiveness. The Corporation will maintain its current focus on strengthening the financial sector in the short term, with medium term efforts targeting infrastructure. It will also promote SME development particularly in agribusiness, manufacturing, and services. The establishment of best practices in international banking, corporate governance and the regulatory environment will be targeted through IFC advisory work and investment projects with strong demonstration effect.

Kazakhstan joined the World Bank Group in July 1992. Since then, the World Bank has become a major development partner with commitments of US$ 5.6 billion for 39 projects. IFC committed a total of US$ 404 million with 11 clients. The Multilateral Investment Guarantee Agency (MIGA) has supported 11 projects for a gross exposure in Kazakhstan of US$ 399.3 million.

Contacts:

In Washington: Elena Karaban +1-202-473-9277, ekaraban@worldbank.org

In Astana: Shynar Jetpissova, +7-7172-580-555, sjetpissova@worldbank.org

For IFC (in Almaty): Assel Choibekova, +7-727-2980586, achoibekova@ifc.org

For more information on the World Bank’s work in Kazakhstan, please visit:

http://www.worldbank.org.kz

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7.9 Million People in Kazakhstan To Benefit From Improved Roads

2012-05-01T20:30:00.000Z

New East-West Roads Project will facilitate more efficient movement of people and goods

WASHINGTON, May 1, 2012 – Today, the World Bank’s Board of Executive Directors approved a US$ 1,068 million loan to Kazakhstan for the East-West Roads Project. The objective of the project is to increase transport efficiency along the section of the Western Europe-Western China (WE-WC) Road Corridor within Almaty Oblast, and to modernize highway management on sections of the Corridor.

Kazakhstan is the ninth largest country in the world with a land area equal to that of Western Europe. The upgrade of the Western Europe-Western China (WE-WC) Road Corridor is among top priorities of Kazakhstan’s infrastructure development agenda. It is the main road corridor crossing Kazakhstan from the border with China in the southeast, through Almaty, Taraz, Shymkent, Kyzyl-Orda, and Aktobe, to the border with Russia (a total of 2,787 km). Construction started in 2009. To date, the World Bank already helped upgrade 1,065 km of the corridor through the financing of the ongoing South-West Road Project.

The approved East-West Roads Project is expected to provide an efficient transport link from Almaty - one of the major economic centers of Central Asia - to Khorgos, the primary road border crossing point between Kazakhstan and the People’s Republic of China, thereby completing the upgrade of the WE-WC Road Corridor. The project will improve road transport movement for about 7.9 million of people, about half of Kazakhstan’s population.

“The Almaty-Khorgos Corridor is the road with the most impact on the regional economy, being a transit link for goods imported from China to Kazakhstan and other Central Asian countries, and therefore is essential to accelerating trade flows and economic prospects,” said Sebnem Akkaya, World Bank Country Manager for Kazakhstan. “The development of transport infrastructure combined with efforts to increase the efficiency of the transport sector is an enabling factor towards the development of the country’s economic competitiveness, increased productivity, and diversification.”

The East-West Roads Project covers the following road sections: Almaty - Shilik, Shilik - Tashkarasu, and Tashkarasu - China Border. The new road will be 13 percent shorter than the existing one (305 km instead of 351 km). About 65 percent of the works will be for a new alignment. The project is expected to facilitate more efficient movements of goods and people, and improve road safety. It should also facilitate industrial, agricultural, and commercial activities with improved trade and services along the road, and in adjacent towns and cities.

The quality of services provided to road-users will be improved —vehicle operating costs are expected to be 13 percent lower when the new road will be completed. The riding quality and road safety will also improve. The project will also help Kazakavtodor— the State own company in charge of maintenance— to better serve road users and to become an efficient, service oriented institution.

“In addition to the physical investments to improve the quality of the roads, the project will help strengthen the institutional framework of the road sector to ensure proper operation and maintenance of the international road network in Kazakhstan,” says Jacque Bure, Task Team Leader for the World Bank East-West Roads Project. “Involvement of the World Bank will promote transparency in use of resources, introduction of internationally compliant fiduciary, safeguard standards, and modern technical standards for road design and construction.”

Civil works will be completed in 2015. An upgrade of the road corridor from 2 to 4 lanes will require additional finances from the republican budget for the operation and maintenance. A study will be launched to review different user-pay mechanisms to assist the Government recover these costs. Proper and timely operation and maintenance will ensure that the investments reach their intended useful life, and that road-users are provided with the expected level of service.

Kazakhstan joined the World Bank Group in July 1992. Since then, the World Bank has become a major development partner with commitments of US$ 5.6 billion for 39 projects.

Contacts:

In Washington: Elena Karaban +1-202-473-9277, ekaraban@worldbank.org

In Astana: Shynar Jetpissova, +7-7172-580-555, sjetpissova@worldbank.org

For more information on the World Bank’s work in Kazakhstan, please visit:

http://www.worldbank.org.kz

Visit us on Facebook: http://www.facebook.com/worldbank

Be updated via Twitter: http://www.twitter.com/worldbank

For our YouTube channel: http://www.youtube.com/worldbank

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2012-04-30T16:06:44.000Z

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