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Implementation Completion Report (ICR) Review - Second Highway Rehabilitation & Maintenance Project

1. Project Data:   
ES Date Posted:
Project Name:
Second Highway Rehabilitation & Maintenance Project
Project Costs(US $M)
 666.7  0
Russian Federation
Loan/Credit (US $M)
 400  0
Sector, Major Sect.:
Cofinancing (US $M)
 0  0
L/C Number:
Board Approval (FY)
Partners involved
Closing Date
12/31/2004 09/27/1999
Prepared by: Reviewed by: Group Manager: Group:  
Kavita Mathur
Roy Gilbert Alain A. Barbu OEDST

2. Project Objectives and Components:

a. Objectives
(i) contribute to major improvements in road financing, particularly increasing significantly the road user charges paid by heavy trucks;

    (ii) improve the condition of high priority roads and bridges on the federal road system, including Siberia and the Far East, and the regional road systems of Krasnoyarsk and Khabarovsk regions, avoiding or mitigating any adverse environmental and social impacts of the road improvements, and institutionally strengthening the capacity of the Russian Federal Highway Administration (RFHA) to manage and monitor such impacts;
    (iii) improve contract management by RFHA and the road administrations of the participating regions and enhance their maintenance management capability;
    (iv) further develop the private road constructing and consulting industries and expand the use of competitive bidding beyond projects financed by Bank loans; and
    (v) improve the allocation of local resources employed in road works by promoting better economic selection of projects.

b. Components
The project comprised of following components:

      (i) federal and regional road and bridge rehabilitation works program;
      (ii) procurement of bridge and road equipment; and
      (iii) design, supervision, technical assistance and training.

c. Comments on Project Cost, Financing and Dates
The project lapsed on September 27, 1999, nine months after Board approval (December 22, 1999), and seven months after the signing of the loan (February 26,1999).

3. Achievement of Relevant Objectives:

None were achieved since the Loan lapsed because the borrower did not satisfy the Bank's requirement "that the borrower shall maintain the Project Implementation Unit within Russian Federal Highway Administration (RHFS) with adequate staff, funds, facilities and other resources required for carrying out the project efficiently"

4. Significant Outcomes/Impacts:

None. See section 3 above.

5. Significant Shortcomings (include non-compliance with safeguard features):

None. See section 3 above.
6. Ratings:ICROED ReviewReason for Disagreement/Comments
Not RatedNot Rated
Institutional Dev.:
Not RatedNot Rated
Not RatedNot Applicable
Bank Performance:
Not RatedNot Rated
Borrower Perf.:
Not RatedNot Rated
Quality of ICR:

7. Lessons of Broad Applicablity:

The key lessons that emerge from this project are:
  • The Bank faces considerable difficulties in operating in countries with uncertain and fast-changing environment as in the case of Russia.
  • When project approval occurs shortly after a major economic crisis, the feasibility of additional borrowing by Regions under the proposed project needs to be carefully reassessed.
  • It is important for the Bank to be rigorous about its audit and accounting requirements.

8. Audit Recommended?  No


9. Comments on Quality of ICR:

The quality of the project completion note is satisfactory.

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